"Dubai Lands": 50 thousand dirhams fine for "violating advertising"

Real estate offers in Ramadan .. Vouchers, gold bars, and free years of service

  • Developers offered an exemption from service fees for a period ranging between two and 10 years.



"Emirates Today" monitored Ramadan real estate ads, which varied between price discounts, reductions on "cash" payment, "zero" interest, a guaranteed rental return, and exemption from service fees for a number of years, ranging between two and 10 years, in addition to bearing government fees, And that one of the companies announced the distribution of purchase vouchers and the other gold bullion to promote its properties.

Realtors said that these offers are strong, but they need more oversight, as there are violations by developers in the way and the content of advertising, especially those that are done through influencers on social media, which exceed some of them to achieve sales to the developer, where the price of advertising for some influencers ranges between 50 and 100 thousand dirhams.

They indicated that the use of real estate developers to influencers with no experience in the real estate sector could harm the real estate market, in order to bypass them when displaying the advertisement, such as promoting one of the influencers to completely deplete the units of a project, which is contrary to the truth, because the project has not been sold, Evidence that the developer is still announcing it.

For its part, the Dubai Land Department stated that the fine for violating real estate marketing is up to 50 thousand dirhams, with the possibility of withdrawing the real estate license in the event of repeated violation.

Housing units

In detail, "Emirates Today" monitored offers to buy residential units in Dubai during the current month of Ramadan, including what was announced on social media platforms, or through the websites of real estate companies, and these reductions started from price reductions on the price of the property, passing by bearing government fees. Service fees and access to the distribution of some companies, purchasing vouchers and gold bars.

Accounts of real estate brokers on "Instagram" offered a Ramadan offer for projects in Dubai, according to which the value of the unit can be paid once to obtain a discount of up to 35%, or to pay in installments over five years, without an advance payment, or to pay 10% in advance and obtain a reduction By 10%.

Binghatti Real Estate Company also offered price reductions on its new project in Jumeirah Village Circle, Binghatti Mirage, as prices for the room and hall in this project start from 485,000 dirhams and 685,000 dirhams for the two rooms.

At the same time, it offered accounts for brokerage firms, projects for Emaar Real Estate, including a project of villas belonging to the company in "Arabian Ranches", by promoting them as being directly from the developer.

As for the «Azizi Real Estate Development» company, it launched a Ramadan offer aimed at financing the first installment at zero interest, in addition to financing the rest of the property’s value in monthly installments through banks with which the company has signed business partnerships.

Among the offers made by the company is the rental guarantee for its projects in the Al Furjan area for a period of three years, at a rate of 10% guaranteed rental return, which is the same offer made by the "Vincitor" real estate company.

50 thousand dirhams

In turn, the Dubai Land Department confirmed that the fine for violating real estate marketing is up to 50 thousand dirhams, if it is actually committed, as well as the possibility of withdrawing the real estate license when the violation is repeated, calling on the public to register any complaints related to real estate marketing through its website.

Ramadan offers

On the other hand, the CEO of Binghatti Real Estate Company, Mohamed Bin Ghatti, said that “Ramadan offers undoubtedly stimulate sales, especially this year, because many dealers decided not to travel during the (Corona) pandemic, and this makes their appetite for investment increases in the local market. ».

The CEO of Azizi Real Estate Development, Farhad Azizi, added, “The money that we usually allocate for events and events is directed to sales campaigns at much lower price levels, as we are now looking to sell the limited number of apartments available in our projects at very attractive prices, so that the investor can Achieving the highest possible return on investment ».

Accumulated units

For his part, the real estate expert, Muhammad Hareb, said, "Developers' offers for sale are active during the month of Ramadan, with the aim of selling accumulated residential units, while others take advantage of providing discounts on annual service fees, or land and property department fees, or reducing real estate registration fees." .

Hareb added, "The developer rarely relies on the issue of discounting apartment prices, in order to avoid influencing the prices in the market."

He explained that there is a segment of advertisers accredited and licensed by the Land Department, while there is another segment that is not licensed and does not have any knowledge or experience in the market, and it causes price discrepancies and loses the market's credibility.

He pointed out that there are some transgressions by the influencers regarding the issue of credibility, and also in the phrases used in the marketing method, so that there are some words, prices or numbers that violate the marketing policy of the developers or the regulator in the country.

Hareb reported that influencers are luring followers and pressuring them by some activists to reserve housing units at the lowest prices, and he is surprised later on by the accumulation of payments, and that he cannot continue to complete the purchase.

Hareb emphasized that relying on influencers is beneficial in terms of marketing to a large segment of followers and investors, but there are also negative aspects regarding the segment of customers and randomness in purchasing, as the influencers tend to promote their followers and they are groups that have not studied the market or undergone any investment experience in the real estate market, and this Ultimately, it leads to a higher market default rates.

He revealed that burning prices makes the investor confused and loses confidence in the developer or the price of the product, and this results in reluctance to buy and head to other investments because the prices are not real.

Negative behavior

For his part, Chairman of the Board of Directors of "W Capital" real estate brokerage, Walid Al-Zarouni, said that "the Ramadan offers and some developers' burning of housing unit prices during the recent period are negative behavior that does not favor the stability of investments in the real estate market."

Al-Zarouni stated that the price burning directly affects the investor’s decision, explaining that if the investor buys a property with an estimated value of 500,000 dirhams, then he is surprised by the drop in its price to 450,000 dirhams, this makes him lose confidence in the market.

He added that the matter needs to be monitored by the Dubai Property and Land Department, to maintain the stability and growth of real estate sales.

Al-Zarouni indicated that relying on influencers in real estate promotion is beneficial, but influencers register violations because they are not aware of the details of the real estate sector, pointing out that influencers, for example, announce the sale of all the units they are promoting, and this is contrary to the truth, as happened with some real estate projects recently.

And he indicated that lowering real estate prices directly affects the market and makes investment flows to the sector weak, as the real estate investor is slow, in light of price declines in the market and hesitates a lot in making his decision, stressing the need to impose strict control on real estate influencers, especially during the month of Ramadan, due to excesses and harsher penalties By the Property and Land Department.

Additional legislation

For his part, the real estate consultant, Muhammad Al-Hafiti, said that “there are governing legislations in the market, but the sector needs to apply more additional legislation to prevent such abuses, and to emphasize the application of current legislation, so that real estate influencers are aware of the importance of correct marketing.” Pointing out that the influencers' transgressions increase the cases of misinformation and unreal offers, which gives a negative impression on the market.

He added that when developers present offers to attract new investors, former buyers feel unfair, for example, whoever has already bought a property with a million dirhams, then is surprised that the developer has offered discounts for the project itself and with better payment plans, so the old investor feels prejudiced here.

• Brokers offered to pay the unit value once to obtain a discount of up to 35%, or to pay in installments over five years.

• The value of the advertisement for some social media influencers ranged between 50 and 100 thousand dirhams.

Unhealthy competition

The real estate expert, Muhannad Al-Wadi, said that "burning real estate prices leads to unhealthy competition between developers, and the one who benefits from it is the investor who bought during the bid period."

Al-Wadi said that the Ramadan offers are expected by everyone annually and have become unpredictable, describing them as a "lazy" strategy, which has bad repercussions on the market.

He added that "the large discounts offered affect the psyche of buyers before or after the offers, and they feel distrust of the criteria by which prices are estimated."

On the role of real estate influencers in marketing, Al-Wadi believes that they represent a quantum leap in the way of obtaining information, in a global trend towards digital marketing and the use of social media sites, but their activity must be subject to control and take place under a license, and this is done by some by obtaining a license From the National Media Council and the competent authorities.

He revealed that influencers provide false information to attract dealers, so there must be strict control over the marketing practices of the real estate sector, like any other investment commodity that is supervised, and on the other hand, the buyer must have sufficient awareness and knowledge before making a purchase decision.

Al-Wadi emphasized that burning prices is not in the interest of the real estate market, because the property pricing strategy must be subject to criteria that determine the reasons for the increase or decrease, and if the developer wants to submit offers he can do so by submitting offers with added value, such as reducing fees, or bearing the value of maintenance contracts, Or offering home furniture for free, and other good offers, far from burning prices.

Various facilities

The general manager of Awad Gargash Real Estate Company, Dr. Raad Ramadan, said that “the calm demand for sales in the market during the month of Ramadan is one of the catalysts that increase competition and marketing policies among real estate companies to increase sales by offering various facilities according to the company's policies.”

He added that “what contributed to the increase in momentum in the real estate market in Dubai, is that developers offered many inducements to investors, under several names, including financial facilities for payment payments or promotional offers”, pointing out that there is increasing optimism in conjunction with the increase in offers, and investors are not apprehensive. By pumping more liquidity into the market.

He continued, "There is a move by developers towards pumping more facilities in the market on the occasion of Ramadan, in order to stimulate demand.

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