Rules are being introduced in the Dubai real estate market to make the lettings market more accountable and open.
New rental contracts are being announced in Dubai to cut down on disagreements with officials, who are looking to reduce the amount of unregistered real estate brokers in the leasing and sales market.
Officials from the Dubai Land Department (DLD) must accompany registered brokers when carrying out property sales and leases in the emirate. They will not tolerate unaccredited circumstances, at all means.
As of yet there are 5,993 active brokers in Dubai and according to DLD, last year alone they conducted 32,939 transactions. These amounted to a staggering AED 1.52 billion.
DLD’s regulatory arm and Deputy chief executive officer of the Real Estate Regulatory Agency (RERA) said: “Dealing with registered and certified real estate brokers is central to achieving a secure and sustainable real estate environment in Dubai and to guarantee their rights, customers and investors must take great care in verifying the accuracy of ownership data for all property before entering into buying, selling and leasing activities.”
Since the start of March, all rental leases have been obligated to use the DLD’s standard form tenancy contract. This has provided rental leases with safeguards for landlords and tenants, offering more protection and peace of mind.
In the case of forms of leases that are currently being used in Dubai, this policy provides certainty should an occurrence arise where something is not well drafted or if it clashes with prevailing laws. There are several standard clauses on the form to be obeyed by but there is the chance to register additional terms – particularly on behalf of commercial properties – where alternative arrangements can be organised.
Making the Dubai real estate market more transparent and accountable will improve the reputation by those who research it around the globe. These new rules are nothing but positive changes for the Middle Eastern country, so the real estate market in Dubai is certainly on the up.
New forms in relation to the rental market are due to be available by June.
Written by Gemma Smith