Ranking system for property developers?

I wonder how this would go over here in Vancouver. From The National, Abu Dhabi's rather promising new daily:

"Property developers in Dubai will be ranked by financial stability and market experience under a system to be introduced by the Dubai Real Estate Regulatory Authority (Rera) this year. It will be followed by a regulation requiring developers registering off-plan projects [or projects sold prior to construction] to fully own the land first."

It seems the "global financial crisis" has hit Dubai's once "explosive" property sector, with 25 developers having cancelled planned projects.

"Investor confidence in off-plan projects has been harmed by several cases of developers failing to go ahead with projects or not to delivering on promises," the reporter writes.

"The previous mechanism of just selling and injecting money from sales back into new projects isn’t there any more," the story quotes the head of the real estate regulatory authority, Marwan bin Ghalita, as saying.

Hmmm... selling and injecting money from sales back into new projects. That doesn't ring a bell does it?

Here's the whole story.

Comments

[Palm Island Dubai]

“We are not lowering prices since most of our projects have been handed over and those under construction are 70 per cent sold. However, a correction to the prices charged by developers will definitely happen within 18 months.