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Dubai's RERA to classify property exhibitions

Marwan bin Ghalaita, CEO of RERA, stated this yesterday as he revealed that the agency is looking into calls for accrediting foreign real-estate agents wanting to do business in Dubai.

He cited property sellers from Italy and the US state of Florida, for instance, which had asked for RERA's approval to market their products in Dubai. "They wanted an accreditation from us, although this is not yet practiced by RERA," he said.

RERA is considering various matters with regard to the framing of agency regulations, which will all be in place by 2009, he said, reiterating that other UAE emirates and Gulf countries would want to replicate the success of RERA.

"They already came to us wanting to learn from and copy the blueprint of RERA," he said in a Press conference announcing the opening of the 4th International Property Show, on Sunday. "Every growing property market needs a regulatory body."

He added that other countries outside the Gulf region would soon copy RERA's technical know-how and property regulatory expertise as well because through knowledge transfer. He stressed that foreign industry practitioners here could bring to their own countries the experience they learned in Dubai.

"They're learning from their experience here in Dubai," he said. "Thus, the growth and success of Dubai is also the growth and success of others."

Dawood Al Shezawi, managing director of show organiser Strategic Marketing & Exhibitions, said that the International Property Show would soon be replicated in a country outside the Arab world due to increasing demand in the property market.

This year's exhibition, set for February 17-19, will feature, among others, high value auctions organised by the Dubai Land Department on the second day of the event which will allow visitors to acquire new plots in Dubai.

"In line with significant government legislation aimed at protecting investors, the organisers have dedicated a special pavilion for RERA-registered financial institutions and law departments to facilitate multibillion deals among international and regional companies and individual investors," Strategic Marketing said in a statement.

RERA has prepared, among others things, rules that will determine how much rents landlord can charge in different localities and what facilities tenants can expect in properties they are renting.

Dubai has ordered landlords against raising rents for two years, and capped the rent hike at five per cent after that. The rent cap was set earlier at seven per cent.

Also in the pipeline are mechanisms for a rating system dedicated to various types of residential buildings.

Fifteen broker firms have piloted since October the four standard agreement forms that would be introduced by RERA to regulate the buying and selling of real estate in the emirate.

The forms being tested include the listing agreement, or the broker/agent appointment by the seller known as Form A; the standard contract — apartments, or Form F; an agent-to-agent agreement, (Form I) and the notification of sale/transfer to RERA, or Form N.

Bin Ghalaita said the show organiser has rejected some real-estate firms from participating in the International Property Show 2008 because they are not registered with RERA.

Al Shezawi stressed that the annual show is more of a "transactional" trade exhibition, which is different from what he described as "commercial" property exhibitions being put up by other organisers. "Ours is transactional - the buying and selling of properties," he said.

Over 200 local, regional and international exhibitors will participate in the show, which is seen to accommodate more than 27,000 visitors from 70 countries, he said, adding that the event has doubled its space at the Dubai International Convention and Exhibition Centre.

"We are looking forward towards adding up to the present activities and features at the 2009 show for the benefit of loyal and new participants." Al Shezawi said.

Dr Omar Mashaabi, general manger of property firm Snasco, said the show is a "fantastic" platform to promote the company's development projects, especially the Sharjah Investment Centre.

Snasco is one of the show's major sponsors along with Al Qudra Real Estate, Tameer Holding, the developer of Silver Tower in Dubai's Business Bay, and Bonyan International Investment Group.