‘Green List’ and AI-based smart property valuation: New features on Dubai REST promise greater transparency
In recent years, the Dubai Land Department (DLD) has been very proactive in enhancing the credibility of the Dubai real estate market. It has implemented numerous initiatives to reinforce transparency and create definitive records, for deeds, transactions and contracts. In the final quarter of 2017, the DLD became the world’s first government entity(1) to conduct business using Blockchain technology. By 2018, the facility had evolved into four modules(2), which created a comprehensive repository of tamper-proof and reliable records, to enforce a secure and investor friendly market ecosystem.
Efforts to boost investor confidence continued throughout 2019, with a series of regulatory reforms and reorganization, to empower all stakeholders within the Dubai real estate sector. In addition to the introduction of technology and legal amendments, Real Estate Regulatory Agency (RERA) – the regulatory arm of DLD – issued an open circular outlining a set of 10 ethical principles(3) for the industry to adhere to – in an initiative that was unique among major global property markets.
Breakthrough services, hosted on Dubai REST
In continuation of the aforementioned measures, the DLD has recently introduced two services that will be hosted on Dubai REST – The DLD’s smart platform for real estate services. The first stage of an Artificial Intelligence project(4), which will enable the smart valuation of real estate assets, has been completed and will be accessible on the platform. Sultan Butti bin Mejren, director-general of Dubai Land Department, announced that this first-of-its-kind project would “strengthen Dubai’s leading position as a vital model for smart cities in the world”.
In another development, a ‘Green List’ service – also available through Dubai REST – has been launched to reduce unscrupulous marketing practices in the real estate sector. The list will provide brokers and property owners with an officially sanctioned channel to communicate. The idea being to reduce unsolicited communication and direct marketing related violations, while empowering authorized real estate marketing, to boost property purchases and rental agreements.
Quick, accurate and AI enabled smart valuation
The proposed Artificial Intelligence assisted smart valuation service has been developed in conjunction with the private sector. Its introduction will enable virtually instant and reliable assessment of properties, through the use of local databases and advanced AI algorithms. The use of cognitive technology will unlock the capacity to analyze huge tranches of transaction data, with an extremely exacting degree of accuracy.
Dubai REST will first determine the type of user and issue an ID number and verification number. The user will then be able to process the fee involved using the Noqodi wallet, select the property they are interested in, and receive a valuation certificate. The project conforms to standards determined by the Dubai Model Centre and – according to the DLD – the valuation service will take as little as fifteen seconds, to deliver its results.
Empowering communication between brokers and property owners
Much like the AI based valuation facility, the ‘Green List’ has been conceived as a reliable, inexpensive and quick service. Its purpose is to enable an easy to use and transparent channel of communication between property owners and brokers, which will be a win-win for both parties. The service will reduce the harassment through ‘cold calls’, which property owners often have to undergo. At the same time, it will give them a means to be open to offers from vetted and registered brokers, who are conforming to a desirable code of conduct.
The ‘Green List’ is neither compulsory, nor the sole platform that owners will be limited to, but the DLD expects landlords to flock to the service. Given the assurance of being connected to only certified and compliant brokers, it’s easy to understand why the DLD is confident that the initiative will get an enthusiastic response from property owners.
Driving an upswing in real estate transactions, through convenient and dependable services
Real estate markets are notoriously difficult to navigate, for all parties involved. A dense and often confusing array of procedures, platforms and regulations often hamper quick and convenient transactions. However, given the large sums routinely involved in real estate, no stakeholder wants to cut corners for the sake of expediency alone.
By simplifying transactions, through the introduction of secure, convenient and authorized services, the DLD is making the Dubai real estate market one of the most investor friendly, anywhere in the world. With all parties involved gaining access to accredited and recognized channels, timely but dependable services, and accurate metrics on which to base their decisions, the sector will likely witness an increase in both the volume and frequency of transactions.
In the aftermath of the global COVID-19 pandemic, economic uncertainty and sluggish returns are causing a deflated market sentiment in most regions. By adding to the convenience of doing business in the Dubai real estate market, the DLD’s most recent initiatives are sure to attract investment to the Emirati city, as economic activity resumes in the new normal.