By Megha Merani
The regulatory arm of Dubai Land Department warns brokers not to chase investors in corridors and parking lots
The Real Estate Regulatory Agency (RERA), the regulatory arm of Dubai Land Department, has warned developers and brokers not to chase investors in corridors and parking lots during Cityscape.
A notice issued to real estate development and brokerage companies by RERA on Tuesday, day one of the property exhibition, stated: “We would like to inform you that RERA warns developers and brokers of malpractice during Cityscape from chasing investors in corridors and parking lots.”
The warning comes as the property sector face fierce competition amidst ongoing subdued market conditions that have persisted since crude prices plunged in 2014.
A new report from real estate advisory Core said this week that rent and sales prices continued to drop across most parts of Dubai in the third quarter of 2019. Core said sales prices are forecast to remain under pressure in the foreseeable future as the market adjusts to supply and demand dynamics with about 29,500 units expected to be delivered by the end of 2019.
The notice said violating instructions would “incur penalties” on the real estate developer and broker that “may result in a financial and/or cancellation of their registration” from RERA's records.
“Exhibitors are obliged to provide their services through their respective stands only,” it added.
Meanwhile, the Dubai Land Department (DLD) on Tuesday also announced a 134 percent increase in real estate transactions following the creation of a new Higher Committee of Real Estate with senior representatives of major property developers among its members. The committee aims to avoid duplication of projects in the sector and achieve a more sustainable balance between supply and demand.
Cityscape is recognised as “the annual barometer” for the real estate industry in emerging markets, organisers state on its website, claiming that the event is “one of the largest and most influential real estate events held globally”.For all the latest real estate news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.