They demanded a mechanism to control prices and resort to the competent authorities to obtain data

Realtors: Variation in the prices of selling and renting real estate between e-marketing sites and the “market”

• The annual rental index and supply and demand are among the factors that determine the price of a real estate product.

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Realtors reported that there is a discrepancy between the prices of real estate products displayed on the websites and the actual prices in the market, demanding the need for a mechanism to control prices, and reduce the gap between these websites and the actual trader in the market.

They confirmed to "Emirates Today" that the discrepancy in pricing, whether for sale or lease, ranges between 10%, and in some cases may reach 40%, noting the need for dealers to rely on the data of the regulatory authorities to obtain accurate information.

Products Pricing

In detail, the general manager of the "Royal Liwan" Real Estate Company, Muhammad Abu Hareb, said that "the pricing of real estate products in the market is somewhat different from the prices circulated on websites, and that advertisements may be real or fake," wondering: Why does the management of these sites not filter? the prices?

As the prices of these sites differ from the market prices, and this indicates the existence of neglect by the management of these sites, which have become profit-oriented only.

Abu Hareb added, "The prices offered on these sites differ from the actual market, and in the case of rents may reach 40%, and in sales prices, they may reach 20 or 30%, less than the actual price in the market, and this is also negligence and negligence on the part of the management of the sites." He called for strict supervision of these sites by the competent authorities.

He explained that among the factors that determine the price of a real estate product, whether for rent or sale: «the annual rental index, the market, supply and demand».

He pointed out the necessity of regulating advertisements by the management of websites and by the supervisory authorities, and although there is regulation with regard to permits, it is not sufficient for the purpose, as the prices are not real, and there must be monitoring by the supervisory authorities, and these sites must be held accountable. and impose a fine on it.

real estate platforms

For his part, the General Manager of Awad Gargash Real Estate Company, Dr. Raad Ramadan, said that “the difference in pricing between real estate platforms is remarkable,” noting that there are criteria for determining prices in the real estate market from one region to another, including the age of the property if Was it new or old, and these criteria are determined by a specialized committee, and there are other criteria for leasing, whereby the rent value can be increased for the new tenant.

Regarding the mechanism for controlling selling prices within the real estate market, Ramadan stressed that this requires referring to the real estate regulatory institutions in each emirate, and relying on the data of the real estate or rent index, calling for updating the data of this index every three months, so that the update coincides with the movements and performance of the market.

He continued, "The great burden will be on the real estate index, which determines prices, and depends on it in the pricing process, and thus controls prices in the market."

Marketing sites

In the same context, the CEO of “Andalus Courtyard Real Estate Development Company”, Saleh Tabakh, said that “the sites listed for real estate are primarily marketing sites, and they adopt an advertising policy, which sometimes does not correspond to the real price, as the high competitiveness of the market.” It prompted some marketers to use misleading tactics to attract the customer.”

Regarding the factors that determine the price of a real estate product, whether for rent or sale, Tabakh indicated that “supply and demand” is the first golden rule for determining the price, but it is also related to the quality of the property, and is not general, as the location and services determine the category and price of the property.

Regarding the price control mechanism, he demanded that strict controls be placed on advertisements and marketing campaigns, that marketing materials should be considered part of the sales contract, and that anyone who provides misleading information to the customer should be held accountable. and increase market transparency.

rental calculator

For his part, real estate marketing consultant, Alaa Masoud, said that "there is a rental calculator that determines rents in each region, so there must be a calculator to determine the selling prices of the properties themselves, and have specific criteria," warning that there are misleading advertisements to attract investors and customers, At high prices, or by providing fake incentives, such as “buy without down payment,” calling for the need to monitor these ads, as well as the need to impose censorship on sites that market for the sale of real estate, such as preventing the publication of any advertisement for sale without a direct license from the Real Estate Regulatory Authority (RERA). ).

Price variety

For his part, the managing director of Harbor Real Estate Company, Muhannad Al-Wadiya, confirmed that “there is a discrepancy in the pricing of real estate products between the famous marketing sites and the real market,” explaining that the prices include several types, including the so-called listing prices, and the increase in it ranges From 10 to 20%, and the second type may include false prices to attract buyers, then a higher price is offered than the advertiser, and this type of pricing is somewhat few, and there is another type of pricing, which is done through appraisal companies, and these companies specialize in evaluation services Real estate, and offers prices by cost, or pricing by income.

Al-Wadiya explained that there are more than 50 factors that affect the price of a real estate product, whether for rent or sale, most notably location, quality, developer reputation, supply and demand, economic condition, price per foot, space, views, and others.

And he said:

Specialized platforms

In turn, the real estate expert, Muhammad Al Ali, stated that "those who offer their property for sale go to specialized platforms, including famous real estate sites, and most of those who offer real estate have the purpose of achieving profit, so most sites vary in price."

Al Ali added that the prices offered for sale or rent on the websites differ from the prices in the market.

Al Ali advised those who want to buy to search more than one site, and more than one real estate broker, and compare between many sites, to know the real prices and compare them, for those who want housing or investment.

Selling or renting

The real estate consultant, Ahmed Al-Dawla, confirmed that “the prices offered for sale or rent on real estate marketing sites differ from the actual supply in the market, as some real estate brokerage companies reduce rents or the price of the units offered to them to attract investors and give them other units that are not in the same sites. », calling for the necessity of imposing fines by the regulatory authorities on those who manage these companies, to control the market and maintain prices.

The credibility of the ads

FEM Real Estate CEO Firas Al-Masdi said, “The problem we are facing is the lack of credibility of advertisements in relation to actual prices, due to the large spread of electronic real estate platforms, so agencies put prices lower than they are in the market, and usually the buyer is looking for Real estate at the best prices, and when he finds the right price, they contact the seller, but the price is somewhat different.”

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