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Announcing Real Estate Transactions is Prohibited!

Announcing Real Estate Transactions is Prohibited!

Dubai Land Department (DLD) issued a circular in recent weeks warning real estate companies against announcing real estate transactions to the media without officially registering them in the department’s system. Any announcement made before completing the registration process is considered a violation of laws and regulations. In response, the Real Estate Regulatory Agency (RERA), a subsidiary of the DLD, will take the necessary actions. This prompts the question: why was this circular issued, and what are its motivations?

In recent periods, there has been a noticeable rise in media reports about the conclusion of property sales or leases involving staggering sums by some companies in the market. For anyone following Dubai’s real estate news, this might seem like an accomplishment worth announcing and publicizing as media coverage. But can such announcements be deemed official?

A transaction is only considered official when it is registered in the official records documenting approved real estate deals by the DLD. If it has not been registered, it is not official. On the contrary, it could harm the market more than benefit it.

For instance, publishing news about the sale of a property or land at a significant value may spark curiosity among some individuals, prompting them to check official records to learn more about the type and location of the transaction. If the deal hasn’t been registered yet—given that the registration process requires a specific timeframe—it may undermine the credibility of these records and shake overall confidence in the market. Additionally, it can harm the reliability of the official indicators relied upon in the sector.

To address these potential downsides, the circular was issued, prohibiting the announcement of any real estate transactions unless they have been officially registered with the department. The goal is clear: to protect the market, safeguard confidence, and even protect the reputation of the announcing entity. For example, a transaction might not be fully completed or might be canceled. In such cases, the damage would be greater for both the announcing party and the market as a whole.

On the flip side, announcing significant deals through media channels is often viewed by the announcing companies as a form of public relations service to raise their profile and solidify their brand amidst the growing number of real estate firms and heightened competition in the sector. They also see it as a major achievement worthy of media celebration. Similarly, some media outlets may perceive such news as an exclusive scoop. However, it is worth noting that, nowadays, there is no such thing as a media scoop. Instead, the focus is on how the story is presented and the narrative crafted to deliver it in the most compelling format.

In conclusion, the circular was not issued to prevent real estate companies from sharing their accomplishments but rather to maintain market confidence and reinforce the credibility of Dubai’s official channels for real estate transactions.

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