Dubai Leads the Way in Establishing Dubai Real Estate Arbitration Center
Friday, December, 21, 2012
According to an October 2012 press release, the Dubai Real Estate Arbitration Center has been recently launched by the Government of Dubai Land Department (LD) in an attempt to streamline property and land disputes and avoid taking these disputes through the court system. The Center will employ internationally recognized real estate arbitrators who are accredited by both regional and international arbitration boards.
As one of the prime locations for real estate development in the world, Dubai, in the United Arab Emirates, is showing signs of recovery in its real estate market since the 2008 financial meltdown. During the height of the worldwide real estate market meltdown, Dubai’s property values fell—in some cases by as much as 65 percent. Even currently, approximately ¼ of Dubai’s residential properties are empty, while an additional 25,000 units are scheduled for completion this next year in fulfillment of contracts that were initiated before the crash began in 2008. According to Bloomberg Businessweek, “The number of property transactions in the emirate jumped 50 percent in the first half of 2012 compared with a year earlier, [as] data from the Dubai Land Department show.”
This neutral, third-party assistance will pave the way for other countries to adopt the same principles when it comes to encouraging real estate arbitration to settle property disputes and avoid clogging the courts with these matters. According to the Land Department’s Director General, Sultan Butti bin Mejren, "Dubai real estate market has become one of the most developed and sophisticated markets due to the large number of dealers and clients. Now, there is an urgent need to establish a center to settle real estate disputes in a smooth and fast manner."
Bin Mejren went on to say that, "The real estate arbitration is the quickest way to resolve such conflicts in the world. The new center will enhance mutual trust between the concerned parties in the real estate market, provide real estate consultations and legal advice in terms of real estate arbitration along with providing awareness of the laws and regulations on property transactions."
The greatest significance for the Center in the country of Dubai is the enormous burden it will take off of the judicial branches of the courts, which have been overrun with these types of disputes. Through the use of a neutral, third party arbitrator who is an expert in all matters of real estate law and property rights, the Dubai Real Estate Arbitration Center will help investors, developers, renters and owners to settle disputes in a cost-effective and time-saving method that avoids litigation.