Urban Renewal with Taba Capital vs. Directly with a Developer
Planning and Financial Certainty
Urban Master plan is approved in advance with the authorities. Residents know their rights and the value of their compensation before selling their homes to the developer.
The agreement is signed before the plan is approved or advanced, leaving uncertainty about what will ultimately be approved, what the actual compensation will be, and whether it will be fair or adequate.
Legal / Property Certainty
The legal agreement with the developer is signed only after the plan is approved, when all details are clear and known to the residents.
The agreement includes clauses that allow the developer to withdraw or change the compensations if the project is not sufficiently profitable.
Flexibility in exchange for uniform compensation
Residents can choose the compensation option that best suits them: splitting an apartment when the existing area is large, a combination of receiving both money and an apartment, or money only — according to their personal needs and preferences.
Compensation is uniform for everyone, with no flexibility to adjust due to the uncertainty that exists at such an early stage.
Independent Professional Representation
The professional team (lawyer, appraiser, architect) is chosen by the residents and represents their interests only.
The developer brings in their regular team, which is loyal solely to them and operates according to their business objectives.
Bargaining Power and Risk Management
After the plan is approved, residents open a tender between developers, with full freedom of choice and without excuses or claims such as “I don’t know what will be approved.”
Any commercial offer made before the plan is approved is both right and wrong at the same time. There is no planning or financial certainty, and therefore no real ability to negotiate neither for the developer nor for the residents.
Maximizing Building Rights
The additional rights gained through planning are transferred primarily to the residents, resulting in higher actual compensation.
Most of the additional rights remain in the hands of the developer and are used solely for their own profit.