Justice and Commerce Ministries collaborate to enhance transparency in real estate transactions

In a significant move to regulate the real estate market and improve transparency, a source told Al-Qabas that the Ministry of Justice, and the Ministry of Commerce and Industry, are coordinating efforts to gather accurate data on real estate sales. This initiative aims to enhance transparency, enabling buyers to make informed decisions when purchasing property.

The source pointed out that the real estate market is in dire need of accurate data including the specifications of homes, their locations, and the number of times each property has been sold. As this information is essential for correctly evaluating properties and helping buyers determine the value of deals.

This collaboration between both the Ministries is part of ongoing efforts to bridge information gaps for buyers and boost their confidence in the market, ultimately contributing to greater stability and prosperity in the real estate sector.

It is worth noting that the current information available in the real estate market lacks the accuracy and transparency seen in some countries in the region, and Western markets, which maintain a high level of transparency in real estate data.

This situation highlights the urgent need to improve the data collection system and provide detailed information to investors and buyers, which will help enhance confidence in the local market and ensure informed investment decisions.

Establishing transparency

To enhance transparency in disclosures of real estate data and statistics to insiders, researchers and buyers, the following must be done:

1. Establishing a central database that is based on a system for collecting and classifying data related to real estate.
2. Limiting the collection and publication of data to one party so that there is no delay or conflict in the statistics.
3. Encouraging disclosure and obligating agents and real estate companies to provide accurate data.
   Data needed by a property seeker

A large amount of data and information should be made available in a clear and accurate manner, ensuring it is easy to understand and organized for easy access. This plays a crucial role in enabling informed decision-making and achieving the desired outcomes for both investors and property seekers.

This data must include all necessary details to ensure its accuracy and reliability, which in turn strengthens the real estate market and ensure that it stays aligned with sustainable practices and development.

Among the things that a property seeker needs are:

• Market details: Display all information about market trends such as supply and demand levels, areas experiencing growth or decline, number of times the property has been traded.
• Real estate classifications: explaining the types of properties offered in more detail, providing details about each category (residential, commercial, investment, etc.).
• Influential economic indicators: i.e. referring to the factors that affected the market, such as inflation, interest rates, etc.
• Property characteristics: such as geographical location, age of the property, area and number of rooms, type of property (i.e. for personal use or for commercial purposes), facilities and services, type of ownership (individual, partnership, collective ownership), market value.
• Historical data: Display price development over a reasonable period of time, for example 5 or 10 years ago.
• Disclosure of major transactions: Providing and displaying information about major transactions that may affect the market, such as government transactions or transactions between companies.