Investing in Dubai real estate -Dubai’s Real Estate Regulatory Authority (RERA) has implemented strict measures to combat misleading online property advertisements, signaling a significant transformation in the city’s real estate sector.
The recent RERA policy aims to significantly decrease property sales ads on various real estate portals by as much as 40 percent. This initiative targets the misuse of developers’ No Objection Certificates by agents to excessively advertise individual units, which has led to a proliferation of listings on digital platforms.
The implementation of digital Form A, the official advertising permit for rental properties, is expected to remove 50 percent of property rental advertisements currently present online. This measure is part of RERA’s comprehensive strategy to enhance transparency and credibility in listings, thereby simplifying the decision-making process for buyers, sellers, and tenants.
The expected reduction in property advertisements is poised to yield several immediate effects.
Firstly, stakeholders will benefit from a more streamlined decision-making process, as they will encounter fewer listings, reducing the confusion associated with distinguishing between genuine and fraudulent ads.
Secondly, the scarcity of listed properties may result in expedited transaction times, potentially fueling an increase in prices as demand surpasses supply.
RERA’s position is unequivocal: every online property advertisement must accurately depict the real estate it represents, including its specifications and pricing. This approach not only serves to safeguard consumers but also fosters a healthier, more transparent market environment.
Despite the imposition of stringent regulations, real estate agents and property portals have often taken liberties with interpreting RERA’s advertising guidelines. While this practice may have bolstered revenue streams for these portals, it involves a complex web of responsibilities among all participants in the market.
In this context, it’s crucial to acknowledge the collective responsibility rather than assigning blame to any single party or denying involvement in the issue of less accurate online property advertisements.
Reputation challenges for certain portals arise due to listings that either aren’t available or are inaccurately presented, leading to a loss of credibility.
There’s a distorted perception of market supply, creating an illusion of an abundance of properties for sale or rent that doesn’t accurately reflect compliance with RERA regulations.
Developers may face discrepancies upon discovering their properties listed at prices not aligned with their actual valuations.
Legitimate listings from real estate companies may experience diminished returns as they compete with numerous other listings, some of which may not meet required standards.
Investors seeking to sell or lease properties encounter heightened competition from listings that may undercut or overshadow their offerings.
Real estate agents who diligently adhere to RERA and Dubai Land Department guidelines find themselves at a disadvantage compared to those who may not strictly adhere to these standards.
The accuracy of market statistics and performance indicators is compromised, unable to reflect the true absorption rate of listed units.
Identifying genuine market trends, such as absorption rate or the time it takes for a property to sell, becomes challenging due to a significant portion of listings not representing unique or accurately priced properties. The Dubai property market, brimming with opportunity, warrants our unwavering effort and commitment to ensure it remains a trustworthy and dynamic landscape for all stakeholders, both now and in the future.