In the dynamic landscape of Dubai's real estate market, a significant challenge has emerged, presenting an opportunity for transformation. The issue revolves around advertising permits, particularly real estate developers' marketing agreements with real estate brokers for off-plan properties, allowing the trending misuse to create fake advertisements on real estate portals that not only harm the market but significantly impact real estate developers in terms of:
- The value of their sold projects that can also impact the developers' reputation.
- Allowing fake re-sale prices and fake inventory availabilities to compete and disturb the sales and marketing of their available projects. This is especially true when outdated prices and available units remain live on real estate portals while the real prices stand at higher rates and a much lower number of available units.
The problem stems from the advertising of individual units based on vague marketing NOCs or contracts between developers and real estate agents. These agreements lack crucial details, allowing brokers to set arbitrary prices and promote unavailable units, often misusing these marketing NOCs to attract buyers with unreasonably low prices on resale units.
To address this challenge, a crucial reform is needed. Online advertisements for off-plan projects owned by developers should be restricted to the project level, eliminating the promotion of individual units. Real estate developers are now reinforcing this by explicitly stating in their contracts and NOCs that brokers cannot use them to advertise individual units on property portals.
Hence, most large real estate developers are now including in their marketing agreements with brokers clauses around the following lines:
“The Advertising No Objection Certificate (NOC) granted to Real Estate Agents is specifically for authorizing the advertisement of complete projects only and does not permit the advertisement of individual units on any RE portals or similar platforms.
This NOC is issued for marketing the entire project through all channels, including RE portals. It is not to be used for advertising individual property units. Any breach of this clause will be considered a violation of the agreement, potentially leading to legal actions, including NOC revocation and other legal remedies.”
Post-sale, responsibility for advertising individual properties transitions to buyers who collaborate with real estate brokers through a formal agreement governed by the Dubai Land Department and RERA. This official advertising permit ensures legitimacy and accuracy in property advertisements.
This transformative approach not only protects potential buyers from misleading ads it also safeguards the resale advertising prices of real estate projects in Dubai. It establishes a streamlined and transparent process for promoting properties in Dubai's real estate market. It's time to usher in a new era of precision and reliability in real estate advertising.