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Dubai property brokers warned against ‘annoying’ telemarketing
Real Estate Regulatory Authority says violators will pay hefty fines.
October 2, 2013 12:17 by kippreport
Real estate brokers in the emirate have been told to stop making cold calls to clients, or risk facing penalties.
The Real Estate Regulatory Agency (RERA) says that this warning was prompted by numerous complaints received from property owners and developers who were contacted by third parties promoting their marketing services.
A circular, sent recently to all registered property brokers in Dubai, states that unsolicited telemarketing violates RERA’s rules and regulations, adding that those caught violating the law will face penalties of AED50,000 and up to AED100,000 for repeat offences.
Yousef Al Hashmi, senior director at RERA’s licensing department, says that tactics such as direct telemarketing – which he describes as “annoying” – do not provide any benefits for the sector.
He adds: “We have reiterated that all real estate brokers and agents should abide by the rules and legislation for the promotion and marketing of real estate properties, by using existing methods that have been established by the agency.”
Brokers are allowed to advertise their own services or projects that have been pre-approved by the developer, landlord or owner – provided their unique registration number is displayed.
Additionally, the warning by RERA comes at a time when property prices and rents in Dubai continue to rise at an alarming rate.
According to recent Q3 analysis by property management company Asteco, released on Tuesday, villa and apartment prices have risen by 26 and 42 per cent over the past 12 months. However, the company maintains that prices are still well below (42 per cent) the 2008 peak levels.
Earlier this month, international property broker Knight Frank revealed that prime house prices in Dubai are rising faster than anywhere in the world.
To curb excessive speculation in the market and discourage property ‘flippers’, the Land Department has announced plans to raise the registration fee for real estate transactions from the usual two per cent to four per cent starting October 6.