Transparency rules 'key to Dubai real estate growth'
Robust transparency rules are the key to maintaining momentum within Dubai’s burgeoning real estate market, said an industry expert.
Dubai’s mission to maintain its international reputation as the most transparent and well regulated jurisdiction in the Middle East has recently been bolstered by the introduction of new rules around the advertising of property sales in the emirate, remarked Andrew Thomson, a real estate partner at the Dubai office of Gowling WLG, an international law firm.
Gowling WLG consists of independent and autonomous entities providing services around the world. It has offices in Birmingham, Brussels, Dubai, Guangzhou, London, Monaco, Moscow, Munich, Paris and Singapore.
As per the new rule, all developers and estate agents looking to operate in Dubai will now be required to have all advertising approved by the emirate’s real estate regulator before such advertising is released into the media.
In the event that developers or agents do not adhere to the new rules introduced by the Dubai Land Department from this month they will face hefty fines, pointed out Thomson.
As part of a crackdown on false advertising in the Emirate, the practical steps involved in registration of advertising are to be made relatively straightforward. For those adverts that meet key terms and conditions, permits will be immediately granted.
However, the amount of time taken to either grant or reject those that have issues has been quoted as just two days so clearly, the resources are on hand to efficiently facilitate a record number of applications, said the expert.
“Despite a number of criticisms that these rules will create unnecessary red tape, they are to be welcomed as a necessary protection for both buyers and real estate agents. Rogue practices are, unfortunately, regularly employed by a small minority to the detriment of those that behave ethically and legally as a matter of course,” remarked Thomson.
“Providing a safety net with which to filter out this minority is therefore key to protecting the status of Dubai as a clear front runner in the global property market,” he stated.
Commenting on its relevance to real estate agents outside the UAE, Andrew said: “These rules also apply to international agents marketing foreign properties in Dubai, primarily in the UK, France, India (and increasingly Germany) so it is vital that they recognise the change and adhere from now on.”
“The rules around non-compliance are unlikely to be that flexible so checking this now should be a core priority for all concerned,” he added.-TradeArabia News Service