The Dubai real estate market is famous for its concern for the transparency of real estate regulations and the introduction of laws that ensure high security of doing business in the sector with a low threshold for entering it. Nevertheless, the development of the legislative framework is a constant process.
This process requires the key regulators of the Emirate, Dubai Land Department (DLD) and RERA, to constantly adapt to changing conditions, to regularly review the existing market situation. This revision was the new reforms in the field of sale and purchase of real estate, which came into force in October 2022.
One of the most important changes was the restriction for sellers to place sale ads with only three real estate brokers. At the same time, brokers are now required to close ads from sale as soon as the property has found its buyer.
It will simplify the search for suitable objects for buyers, will save the market from a lot of duplicate ads for the sale of real estate, will save buyers from situations when the found object turns out to have been sold to someone else for a long time.
At the same time, this will force brokers and real estate sites to compete more actively with each other for the right to place sale ads. Also, brokers will no longer be able to use the expired permit for the sale of a property in Dubai.
One of the goals of such changes is to combat the constant «ringing» from countless brokers and agencies of sellers and buyers of real estate. Both DVD and RERA are already fighting against this practice in some way, but the effectiveness is not as high as the regulator would like. Brokers are also required from now on to have an electronically certified document «Form A» (placement contract concluded with the seller).
These innovations are currently aimed at the sphere of resale of finished real estate, but will soon be extended to the primary market/housing under construction (off-plan). In any case, Dubai Land Department assures that violators will be actively prosecuted and severely punished.
The first, and most noticeable, change in the market due to the new laws is a decrease in offers on well-known real estate sites, brokers and agencies' websites. This is due to the fact that today a huge number of offers are duplicate ads about the same object placed on dozens of sites.
Such a situation will become a thing of the past and, at the same time, the quality of the remaining ads will increase. If it is possible to place the object being sold only with three brokers, each of them will have to not only offer the best conditions for sellers, competing with each other, but also improve the quality of the ads themselves: more and better photos, better designed and detailed descriptions, video tours, detailed descriptions of the structural and interior of the building.
Due to the new changes, a new average duration of placing ads for sale on the market is also being established (about three months). Other terms will have to be agreed separately between the parties. The seller will always have to break the previous agreement with any of the three brokers before resorting to the services of any other.
The formation of a new trend is also expected, when certain sellers will work only with selected brokers who have proven their professionalism in the field of real estate sales.
