Thursday, January 01, 2009

No more freelancers will operate in Dubai's property sector

The introduction of a new system of licensing rules for Realty brokers and online Registration of rental contracts in Dubai in 2009 is expected to make the sector more transparent and also the real estate investors in Dubai will feel safer investing in the emirate's property sector.

Real estate licensing procedures to control the operations of freelance real estate brokers are now set to be operated under one, uniform system, according to an agreement signed by the Department of Economic Development (DED) and Dubai's Real Estate Regulatory Authority (Rera). Earlier anyone who was a national of the United Arab Emirates or GCC could operate as an estate agent. According to the new rules, anyone opening a real estate brokerage will need to apply for a license and meet new criteria to operate.

Marwan Bin Galita, chief executive of Rera, told that those who apply for license should to be over 18, they need a good conduct certificate by CID and They must also under going training and attend courses run by RERA.

The DED will use its own license and business registration system according to RERA regulations for issuing licenses related to real estate activities. RERA will train a number of DED staff on how to use these new licensing procedures. The aim is to make the Real estate agents are qualified to complete real estate deals, and to have ethical standards for real estate agents, brokers and companies.

All tenancy agreements in Dubai must be registered on RERA's new online registration website, Ejari starting in January, so that the final rental index may be prepared by RERA. The rental index will map out rent structures in Dubai and is all set to launch the property rental index at the start of next year.

Marwan Bin Galita, chief executive of RERA said that Registration of all contracts is compulsory, under Law 26. This will assist in finding a rent data base which will make the whole system more efficient and transparent. The online registration, when complete makes it easier for RERA to monitor the rental market and track any landlords or tenants deviating from their tenancy contract.

Along with the recent amendment of law 26 relating to tenancy contracts, the Dubai's rental market is getting a good look. Nearly more than 100 companies have already registered their tenancy contracts on RERA's website.

1 comment:

Dubai Real Estate said...

According to the Middle East Economic Digest the value of construction contracts awarded in the UAE fell by 85 per cent in the fourth quarter compared to the same period last year. It just shows that plight of property sector in UAE.