The Dubai Real Estate Regulatory Agency recently implemented new regulations aimed at the processing of property advertising permits, specifically for offplan projects and developer sales.
Brokers are now required to obtain a Form A, which is RERA’s permit for any offplan property advertised on behalf of developers. This signifies a departure from the previous practice where agents could utilize a generic advertising NOC for an entire project to advertise a single unit.
The rationale behind this stringent measure lies in the Dubai Land Department's aim to ensure advertised units align precisely with the No Objection Letter submitted by a developer for advertising purposes. This alignment encompasses crucial aspects such as the price, property size and unit type, thereby safeguarding consumer interests and promoting transparency within the real estate market.
As a result of these regulations, there has been a significant decline in the number of advertised properties compared to previous levels. In some projects, the reduction in the number of advertised units and listings on real estate portals has been as drastic as 90 per cent.
These rules underscore the commitment of regulatory authorities to enhance accountability and integrity within Dubai’s real estate sector, ultimately fostering a more transparent environment for investors and all other stakeholders.
RERA has also warned all real estate brokers that any violation on this will result in Dh50,000 fines.
Bring about greater market transparency
Once the Form F (sales and purchase agreement) is signed, RERA mandates that brokers and property portals immediately remove the concerned ads. This eliminates misleading practices where those ads stayed live to generate more enquiries from buyers.
RERA now rigorously oversees not only brokers but also property portals, ensuring full compliance with the new guidelines
This represents stringent rules for digital advertising, demanding professional standards and transparent practices in showcasing offplan properties. Real estate firms are now required to enhance their corporate structures and elevate their brand integrity to meet the new regulatory demands.
It will mean a significant reduction in fake property listings, ensuring fair competition and genuine visibility for legitimate properties. Developers must issue no objection certificates at the individual property unit level, drastically improving the reliability of online property ads.
The new regulations help correct market perceptions by aligning advertised property availability closely with real inventory, reducing misleading information for buyers.
Also, the anticipated digitalization of NOCs for rental properties and developer-issued advertising permits will set the stage for further enhancements in regulatory processes.
These sweeping changes signal a turning point towards a more transparent and mature real estate market in Dubai.
