By The unchallenged growth of real-estate industry in Dubai has stunned the entire world. As Dubai real estate grew, it witnessed number of real estate brokerage houses mushrooming in the region. Real estate sector became one of the most popular employment sectors as it was profitable owing to new construction projects and number of individuals moving to Dubai.
In the year 2007, Vice President of UAE, Ruler as well as Prime Minister of UAE, Sheikh Mohammed bin Rashid Al Maktoum, formed RERA or Real Estate Regulatory Agency in order to make certain fair practices in the real estate industry. RERA was set up to help tenants, landowners, and all the other involved in owners association management Dubai to bring much more investment and consequently business. It’s supported by Dubai Land Department also.
In the year 2013, CEO of RERA remarked that too many companies are playing in Dubai Real estate industry. Number was even higher than what is needed by Dubai. Indeed, a total number of 2,205 property firms were found to be active in 2014 and above 560 new ones started operations the very same year. This alerted Real Estate Regulation Agency to make existing rules and regulation more strict and add some more to bring down this number to maintain quality.
Some of these new measured were as follows;
- Passing marks for test to renew license was changed from 75 percent to 85 percent. This was done to ensure that brokerage firms had enough knowledge about new rules and regulation under real estate sector.
- Broker’s cards were also introduced that were to be linked to Emirates ID.
- For new companies coming into the Dubai real estate, a new rule was passed which allowed them to employ not more than 4 agents in first year. Any type of increase in number of agents in that year depended on business of firm in first year.
- RERA will be taking strict actions against those companies in Dubai real estate that failed to conduct any transaction or business for 6 to 12 months. Warning letter is also sent to these firms and if no improvement is seen, RERA can cancel their registration.
Additionally, tests to obtain new license or renewing older ones were also made more difficult to make companies serious about doing business and become owner association management Dubai and provide maximum advantages to the investors rather than the company it self.
