The Real Estate Regulatory Authority (RERA) has launched new regulations mandating property developers and agencies to seek permission for any property related advertisements. The rules aim to promote transparency.
The online system Trakheesi allows registered brokers and developers to conveniently apply for permissions to advertise properties within Dubai.
This is a major step towards industry maturity. Looking at more mature real estate markets like the UK, US and Canada, there are two factors that stand out: transparency and regulations. The Trakheesi system, despite adding these two factors to the industry, also formulates a streamlined process, creating a balance for all real estate industry stakeholders including brokerages, developers, media and online portals.
Duplicate listings, improper documentation and fraudulent details have been major concerns for long. Through the rules, these issues will finally be tackled at large and for good. The change will result in a lesser number of listings in the market, saving time for buyers and tenants who fall into the trap of “I will get back to you shortly.”
Apparently, in the short run, this will give online portals a shock because the number of listings shelf spaces sold by these portals will be reduced dramatically, resulting in revenue decline. But this will eventually help agencies spend the right amount of money on marketing and effectively work on direct listings only.
Portals that target international audience represent the Dubai real estate industry as a whole. If only the right information is published, this will give more credibility and effectivity to the industry. The number of enquiries might go down in the long run, but the genuineness of leads is expected to increase, resulting in a better conversion ratio.
In terms of off-plan developments, generally, for every new launch, agencies race to get their email flyers or advertisements out in the market without checking if they are authorised to do so and if the details are accurate. The rules explicitly discard all these issues as getting an approval from RERA means providing all the relevant property details. Thus, potential clients get to know a project’s completion date, price, payment plan, service charges, if the project and developers are RERA approved, and if an escrow account is in place.
For the secondary market, the change will be welcomed by the agencies happily as landlords and owners will now sign Form A with limited agencies.
This is a very smart move by RERA towards creating an equilibrium in the market as the agencies are not allowed to charge anything from the owners; at the same time, the owners will have limited agencies to choose from, urging agencies to work more seriously, proactively and effectively on the properties that they are authorised to sell or rent.
Gradually, when the landlords are educated about the law, this will turn the table in a way that owners will research and look for the best agencies to list their property for sale or rent, instead of agencies reaching out to the landlords to list their properties.
For any change that comes into place in any industry, there is always a transition phase where the stakeholders tend to understand its objective and analyse how the change will impact the industry as a whole.
Currently, the transition period is about to end as many agencies have realised that moving forward will eventually help the market, their business and the end-users who will be able to access the right information effectively and reach a decision without wasting time on false advertisements.
Article by Mohsin Ayub, Media Strategist – SPF Realty
Article Source: Gulf News