(MENAFN- Khaleej Times) The Real Estate Regulatory Agency, or Rera, the regulatory arm of the Dubai Land Department, on Tuesday warned real estate brokers to stop unauthorised direct telemarketing or face penalties.
The warning comes after Rera received complaints from property owners and developers who have been contacted by third parties promoting their marketing services for properties that are not even put up for sale.
A circular sent by Rera's Real Estate Inspection Division to all registered property brokers in Dubai pointed out that the practice of uncalled-for telemarketing violated the agency's rules and regulations.
The circular, which came amid a remarkable third-quarter surge in Dubai's property prices and rents, warned that any real estate broker not adhering to these mandatory stipulations would be fined.
Brokers who are found to have violated Rera regulations would face fines of Dh50,000 and up to Dh100,000 for repeated violations.
"Rera has made contact with all real estate offices in Dubai asking them to refrain from such annoying tactics as direct telemarketing, as they do not provide any benefits for the sector," said Yousef Al Hashmi, senior director, Licensing Department. "We have reiterated that all real estate brokers and agents should abide by the rules and legislation for the promotion and marketing of real estate properties by using existing methods that have been established by the agency," he added.
Sultan Al Suwaidi, head of Permits and Inspections at Rera, said he has received numerous complaints from property owners and developers relating to the direct telemarketing malpractice. He explained that contacting property owners directly in order to offer sales and marketing services is not only a breach of the guidelines from Rera, it goes against the whole ethos of the profession. Al Suwaidi said real estate brokers are allowed to place advertisements promoting their own services and can also promote projects that have been pre-approved with the developer, owner or landlord. "When advertising their services on-line, every real estate office is required to include their unique registration number, which must be placed on all communication documents. He added that Rera is working towards creating a professional real estate environment for Dubai's property sector operators that is governed by clear and transparent laws and regulations for all," the regulator said.
In the third quarter this year, Dubai's villa and apartment sales prices soared year-on-year by 26 per cent and 42 per cent respectively, but remained still 42 per cent lower than the same 2008 period.
According to "Asteco Dubai Q3 2013 Report," year-on-year villa and apartment rents are up 19 per cent and 23 per cent respectively but still 31 per cent and 38 per cent lower than the same quarter in 2008.
Office rents rose 43 per cent over past year, but remained 66 per cent below the same 2008 quarter.
The report said although prices would increase further, it is unlikely that they will hit their 2008 peaks in the short to mid-term.
Thee fundamentals that have been driving Dubai market upswing include political stability, trade links, a buoyant and diversified economy, regulatory infrastructure and an attractive tax environment. John Stevens, managing director, Asteco Property Management, said projects with favourable payment plans in good locations saw the bulk of demand.
The best performing areas for apartment sales prices over the past year were Discovery Gardens, up 75 per cent to Dh700 per square foot, and Jumeirah Lakes Towers up 46 per cent to Dh950 per square foot. In terms of 2008-2013 performance, Jumeirah Beach Residences and The Greens are 32 per cent and 33 per cent respectively below their 2008 peaks. On average, the most expensive area to buy an apartment in Dubai at the moment is Downtown Dubai, at DhD1,700 per square foot, Asteco said.
"We expect rental growth to continue as economic improvements fuel internal demand as well as result in new arrivals," Stevens said.
"Office sales prices have seen little improvement over the last five years and are still 63 per cent lower than in 200 third quarter while the last 12 months only saw minimal increases of eight per cent on average. The office market has outperformed residential over the past year, rising 43 per cent, albeit from a low base," said Stevens.
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