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Tayseer and Tanmia are initiatives taken by the Real Estate Investment Management & Promotion Center (REIMPC ) to rejuvenate stalled projects by providing the required financing, thereby reigniting investor interest in Dubai real estate. Essentially, they deal with the same issue: to help real estate developers with any finance deficits and to help reduce the number of projects that were abandoned due to the lack of financing.
There are some critical set criteria under which a project can be aided through the Tayseer program. The construction of the project needs to be completed at least 60%, and secondly it needs to be 60% sold. The progress on the project also needs to be in accordance with the construction schedule set by the Real Estate Regulatory Agency (RERA). If such project is approved of and enrolled under Tayseer, the authorities must ensure that the developer is credited timely funds from the bank to aid completion.
Tayseer was introduced in 2010 and, ever since, a lot of projects have benefitted from its assistance especially in the Jumeirah, Dubai Marina and Business Bay districts.
Tanmia is similar to Tayseer. It was introduced to complement the Tayseer program. While Tayseer offers financial assistance, Tanmia adopts projects that have been abandoned and are currently without an investor or developer. There are many projects that have fallen into this category due to the financial crunch that hit the region a few years ago, the aftereffects of which are still lurking around.
Even so, there are criteria that apply here, too. Legal issues have to be addressed especially if the investors/developers have absconded. At the next stage, a technical report must be prepared before the project can be taken over by a new developer. This report will have all the details relevant to the project, till date. After the proposal and approval stage, it is up to the REIMPC to decide how best to go ahead with adopting a project, and whether it makes any commercial sense to put more money in the project.
Since Tayseer and Tanmia are both initiatives introduced by the Dubai Government, there are hopes that these programs will reinstate some faith from investors in the real estate market.
• Tanmia adopts abandoned projects without an investor or a developer.
• Tayseer offers assistance to developers that experience financial deficits.
• Both are expected to bring back investor confidence in real estate market.
Source: Urmila Santosh, Special to Properties
The writer is a freelancer