Call to make realty ads ‘a model for the region’

Prior to getting approval for advertising, the real estate developer must have a registration membership number with Rera, an escrow account number, and a licence that authorises them to practice their profession.

 

The publication will be required to have a copy of the original owner title and a letter of authorisation from the direct property owner to the assigned broker that demonstrates his permission to the chosen broker to perform his duties. Publications are expected to verify the submitted information before giving their OK for an advert to be carried.

Marwan bin Ghalita

‘‘The new measures aim to crack down on companies that claim to be real estate developers, promote themselves and place adverts, when really they are nothing but rackets. Rera sources believe there are 500 companies that claim to be real estate developers, but only 410 are currently registered with the real estate authority."

Ranjit Kumar

‘‘It’s high time this was done. Whenever an industry witnesses a boom, the emergence of fly-by-night operators is inevitable. By putting these regulations in place, Rera is checking just that. The new regulations will also benefit agencies in avoiding unscrupulous companies as we are looking at working with credible real estate companies with a long-term vision. We don’t want to work with companies that want to make some quick money and disappear."

‘‘Any move that aims to protect the consumer is highly appreciated. Real estate advertising has a significant share of overall advertising spending. The real estate sector itself is huge and needs to be monitored and regulated. The sector’s advertising spending will experience a minimum growth of 15 per cent this year."

‘‘The new regulations will help the booming real estate industry in Dubai and will also be a model for others in the region. The regulatory laws will further boost the realty boom in the region, as these laws provide a level playing field for developers committed to quality, while providing buyers maximum security for their investment through trust accounts."

‘‘For genuine estate developers the new regulations are great. This will put both developers and clients on a reasonable level of responsibility and will strengthen Dubai’s position regionally and internationally."

‘‘The new Rera measures will be highly appreciated because it will help boost the credibility of Dubai among real estate markets in the region. Any effort to regulate real estate advertising is more than welcome… the advertising industry in the UAE has been trying since the early 1980s to introduce a code of ethics to discipline the process."

‘‘Rera’s quick action in bringing about new advertising guidelines has to be commended. Rera has initiated several regulations since its inception. The escrow law is constantly evolving to understand the developer’s needs. It is now more flexible and realistic. These measures will help create a more effective and transparent system. Additional regulation covering advertising may seem difficult in the short term but bring about a new level of governance and transparency among firms."

 

19 per cent growth in real estate advertising spending in 2006, according to the International Advertising Association

27 per cent growth in advertising spending by real estate companies in the UAE in 2007

381 million dollars is the total amount spent by various real estate developers on advertising in the UAE

15 per cent is the contribution of the real estate sector to overall advertising spending in the country last year, according to IAA statistics

236 million dollars was spent by real estate developers on advertising in 2006

500 companies claim to be real estate developers in Dubai