In a decisive move to uphold transparency and accuracy in the real estate sector, Dubai’s Real Estate Regulatory Agency (Rera), an arm of the Dubai Land Department (DLD), has imposed a hefty fine of Dh50,000 on each of 30 real estate companies. This action comes in response to these companies’ failure to comply with established rules and regulations governing real estate advertisements.
Rera has set forth specific terms and conditions to regulate advertisements in the real estate sector, aimed at curbing negative practices and ensuring honest and accurate communication with customers. One of the key requirements is for companies to obtain advertising licenses and provide correct information in their advertisements, including the inclusion of a QR code. This code enables investors to easily access and verify all relevant data associated with the properties being advertised.
Despite repeated reminders and warnings, these 30 companies did not adhere to the stipulated guidelines, leading to their penalization. Ali Abdullah Al Ali, director of the Real Estate Control Department at Rera, highlighted the agency’s rigorous monitoring of market activities and advertisements by real estate companies. “The agency had previously issued circulars and warnings to emphasise the provisions and conditions of real estate advertising and ensure compliance,” he stated.
Ali also underscored Rera’s commitment to enhancing transparency in the real estate sector, ensuring the protection of stakeholders’ rights, and contributing to the sustainable development and growth of the sector.
The importance of these regulations is underscored by the record number of real estate transactions that took place in Dubai in 2023. The Dubai Land Department registered a staggering 1.6 million transactions across various activities, including real estate sales and rental agreements, marking a 16.9 percent growth compared to 2022. The value of these transactions exceeded Dh634 billion, with more than 166,400 real estate transactions recorded in 2023.
This robust activity in the real estate sector underscores the need for stringent regulatory measures to maintain trust and integrity in the market. By imposing these fines, Rera sends a clear message to all industry players about the importance of adhering to advertising rules and the consequences of non-compliance. This action is a significant step towards ensuring a fair, transparent, and reliable real estate market in Dubai.
