Since my first visit to the city, I was struck by the energy of Dubai, its extraordinary and striking landmarks, and the lasting impression it left on me. In recent years I have witnessed the city’s real estate grow and add even more to its beauty and glamour. Now, as part of Dubai’s community of developers, I have had a ringside seat to what goes into this success and expansion.
Since 2007, the Real Estate Regulatory Agency (RERA) has been the regulatory agency of the Dubai Land Department (DLD). It enforces policies to safeguard the interests of all stakeholders – investors, buyers, developers and financiers – and enjoys considerable autonomy to facilitate business transparency and conditions.
The Dubai Land Department (DLD) recently issued a circular through RERA, laying down 10 guiding principles for the city’s real estate sector to follow. Coming at a time when Expo 2020 is nearly here, this is a particularly timely initiative. Growth that is based on trust, transparency and professionalism is always more likely to continue to flourish over the long term, as well as being able to maximize its potential. RERA’s recommendations go a long way towards allowing such an environment to take root in the Dubai real estate market.
Creating a framework
While many of RERA’s recommendations may seem obvious, what is important is the creation of an environment that sticks by these principles. It’s often useful in life to state goals out loud. After all, this is why collectives as diverse as corporations and sports teams have mission statements. What impressed me about the RERA code of ethics is that it creates a strong and complete framework for ethical behaviour that will result in an atmosphere that promotes confidence. The recommendations include:
- Trust: Real estate companies have to show their trustworthiness and strive to gain the confidence of all stakeholders. These business establishments need to recognize that their conduct has a bearing on global perception of the market.
- Confidentiality: RERA has explicitly clarified that unless required by law, real estate companies should not disclose any confidential information without consent.
- Conflict of interest: Conflict of interest is an awkward situation in any business deal. Real estate firms shall be required take appropriate measures, including disclosure and transparency for all the aspects of the business transaction.
- Honesty: For any transaction to inspire confidence, it needs to be fair and honest. RERA expects all real estate businesses are to act in an ethical manner with all their customers.
- Integrity: Real estate firms are expected to act with integrity, especially when offering their professional advice.
- Compliance: Compliance with laws and regulations applicable to the real estate sector is to be an absolute must under all circumstances.
- Professional service: I believe that a high quality of service is the corner-stone of customer satisfaction and RERA has acknowledged this by including professionalism in its 10 principles.
- Transparency: Trust, honesty, integrity, all combine together to make business transactions transparent. This is another principle that RERA has specified which companies have to follow. Companies are required to be open and accessible and never mislead, misinform or withhold information.
- Protect customers’ rights: Real estate companies have to protect the customers’ rights and assets which are related to the duties performed and services rendered.
- Community initiatives: Lastly, RERA expects the real estate sector to take a socially responsible position. Their activities and community initiatives should aim for the betterment of society and uphold its values.
Likely impact
The Dubai real estate sector is keen to attract investment from far and wide and to broaden its base of buyers. It is a market which has moved on from speculative investments and short-term profits to a mature long term pool of capital and assets. Dubai economy has diversified from a predominantly oil-based economy to tech centric and knowledge based one. The recent regulatory changes have opened up avenues for people-centric policies and state of the art facilities that are making the city one of the most livable in the world. Changes in visa regulations are attracting a wide spectrum of expatriates, from retirees to young professionals, leading to a rise of new segments of buyers.
The much awaited Dubai Expo 2020 event is drawing nearer and also adding its own momentum to the real estate markets. This is a moment in time when Dubai is perfectly positioned to make the most of demand driven growth. However, this is only possible when there is transparency and investor confidence. The code of ethical practices announced by RERA gives the entire real estate market and opportunity to collectively create a win-win for all stakeholders. I see a new dawn in Dubai real estate and this initiative by RERA is opportune reminder that long term business value can only rest on sound ethics. By working to uphold these principles to the best of their ability, the Dubai real estate community has the opportunity to expand, invigorate and stimulate the market it depends on, so that we can all prosper together.
