RERA launches licensing initiative to upgrade Dubai real estate valuations and outlaw 'broker valuers'

Dubai's Real Estate Regulatory Agency (RERA) today announced a major new initiative which will see the regulator license valuers to carry on their profession in the emirate. The move will restrict the practice of carrying out valuations of land and buildings in Dubai to those authorized to do so who obtain a RERA licence.

The decision to move to a system of licensed professionals was taken following a meeting between Marwan bin Ghalita, CEO of RERA, Mahmoud Alburai, Head of RERA's Real Estate Department, and professional firms and individual valuers operating in Dubai. The Regulator agreed to publish a 'Blue Book' which will set out in detail best practice for the profession in Dubai.

The catalyst for the initiative has been the gradual blurring of the lines between professions which has led to unqualified personnel, including some brokers, offering to and carrying out valuations. Mr. Bin Ghalita said: "This should be welcomed by real estate investors, financial institutions providing mortgage or other loan finance, and professional valuers and surveyors.

"Clearly, valuations are too important to be left to people who are not professionally qualified to carry them out. We want to see best practice applied throughout Dubai since this is by far the best way to properly safeguard the interests of buyers and sellers, ensure accuracy, avoid disputes and preserve the integrity of the market.

"Buyers need to know exactly what they are getting for their investment and sellers too need to know they are on firm ground when disposing of their real estate. The way to bring certainty to the system is to ensure it is based on accurate information provided by suitably qualified and licensed professionals.

"This is why we are introducing regulation into the system and publishing a Blue Book. This will list the professionals and firms licensed by RERA as competent to carry out valuations, set out best practice, record changes and amendments and comprehensively collate valuation details. Earlier, we took a similar step to regulate brokers and ths has proved extremely successful in building trust and raising professional standards for the way real estate is sold. I believe this latest initiative will have a similar effect on the w y Dubai real estate is valued."

Mr. Alburai said a valuation is a highly technical exercise that requires real expertise and knowledge of the relevant market segment, whether it is land, buildings, apartments, villas, commercial property, and industrial or retail facilities. He added: "The right qualifications and experience are all important and will be factors in deciding who is licensed by RERA to practice as a valuer.

"We will coordinate with chartered surveyors and other associations of professionals in setting the rules and licensing requirements in order to ensure that Dubai valuers follow international best practice. The Blue book will play an important role in establishing acceptable procedures and setting out a code of ethics for valuers."

The move has been welcomed by Dubai's professional valuers, who have hailed it as one of the most significant developments in protecting the rights of the real estate sector's stakeholders. Yousif Al Hashimi, Director of RERA's real estate licensing department, has confirmed work is well advanced on creating the new regulatory framework for valuers. He said: "In future there will be no place for those who attempt to present themselves as valuers by courtesy of having obtained a broker's licence.