The state represented by RERA fined one of the Dubai brokerage houses for non-compliance with the rules of promoting ads and using escrow accounts in real estate operations in the UAE.
The Dubai Real Estate Regulatory Agency (RERA), a special regulatory body of the Dubai Land Department, imposed a fine of AED50,000 ($13,500) on a real estate company that was found to violate laws regarding the use of escrow accounts and real estate advertising.
During the RERA’s audit of the abovementioned brokerage firm promoting campaigns and its overall performance, it was found that the company committed a number of violations related to the marketing and advertising of real estate projects not registered under its name. Violations also included the conclusion of investment contracts with clients in relation to these projects, the receipt of money outside the escrow accounts and the launch of promoting campaigns without obtaining the necessary permissions from the relevant authorities.
Having examined the violations committed by the real estate company, it was decided to impose a fine of AED50,000 ($ 13,500) on it, with a warning about doubling the fine, if the company fails to suspend its license, close the office and transfer information about its violations to the public.
Such stringent measures regarding the regulation of the Dubai real estate market are being taken to emphasize market’s safety for investors and buyers. RERA calls on all real estate companies and brokers to comply with the laws and regulations governing the mechanisms of advertising and real estate marketing to ensure the highest level of transparency and protect the rights of all parties.
Meanwhile, in April, even against the backdrop of measures limiting the spread of Covid-19, 1,824 real estate transactions worth over AED3.62 billion (US$990 million) were registered in Dubai.
At the same time, the volume of transactions in secondary market was significantly lower than in the off-plan market. However, the most sought after and popular areas of the emirate, Dubai Marina and Palm Jumeirah, have retained their dominant position even during these hard times. The biggest part of the potential buyers’ search enquiries were also focused on these areas, both having accounted for 21 per cent of all property searches in April.
Interestingly, since the beginning of March and the Covid-19 crisis, the percentage of searches for villas and townhouses has become higher than for apartments. This trend continues to grow even after quarantine restrictions in Dubai have been partially lifted, said Linnett Abad, research director at PropertyFinder. According to her, compared with previous weeks, requests for villas in Dubai increased by 30% compared with the same week last year.
Surprisingly, the demand for villa rentals in Dubai keeps growing for the second week in a row, which is 56 per cent higher compared to the same week last year. This is apparently due to the fact that the restrictions associated with quarantine made people think about buying or renting private houses with their own outside spaces where you can walk and breathe fresh air.
IMEX Real Estate encourages you to be vigilant when choosing a real estate agency in Dubai and trust only professionals with extensive industry experience. As for your requests, we will find anything you need in the shortest possible time, whether it be a villa with its own garden or an apartment with a large terrace and magnificent views.
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