Technology never stops getting slicker. From Ferraris to autographed items, millions of dollars are spent by individuals in online transactions. Hence it only makes sense for the pundits of PropTech to go farther and make property buying as simple as a tap on your smartphone.
When you shop for a villa online in Dubai you can also be assured that you can make payment via smartphone apps. Dubai Land Department (DLD) has launched new ‘Apple Pay’ and ‘Samsung Pay’ payment methods to support Dubai's smart transformation strategy and to enhance its competitiveness among other cities. This move is aligned with the Government's strategy to support outstanding government performance based on the latest technologies.
DLD introduced the service at the beginning of June 2018 and it is now in use at their headquarters and also at all real estate registration trustee offices, to benefit their customers. The aim of the project is to facilitate the payment process in compliance with DLD's strategic objective to switch to electronic, paperless financial procedures, helping to reduce the use of cash and cheques in favour of modern smart channels.
In addition to ensuring convenience to all customers, smart payment services enhance the ease of doing business in the Emirate, improving Dubai's ability to compete with other investment destinations around the world.
UAE has jumped 13 places to reach 21st rank among global economies in Ease of doing business 2018. The top rankings are held by the likes of Singapore, Hong Kong, the US and UK. When it comes to individual cities, Dubai is the leading city in GCC and one of the top global cities in rankings. This new technology of payment to DLD through mobile apps takes property transaction to a whole new level and augments the ease of doing business even more.
According to Doing Business Report 2018, transparency is the key to reducing opportunities for corruption.
Transparency in a land administration system provides a defense against bribes intended to expedite the process of registering property, changing a title, acquiring information on land or processing cadastral surveys. Corruption in land administration can result in fraudulent land transfers, undermine public confidence in existing land rights while reducing investments. This will prove to be costly for the economy especially in those countries that depend on real estate transactions for growth.
Most economies do not provide an independent and specific complaint mechanism for land registry issues. Such corrupt behaviors spur inefficient land ownership, with land being owned by those most able to participate in corrupt activities.
Furthermore, corruption and of power can hinder the development of the real estate market. It can have adverse consequences on the business climate and economic activities by increasing the costs of doing business,thus undermining private sector confidence. High costs,together with inefficient procedures discourage people from registering land transactions,steering them instead into the informal land market. Corruption in land management can have a direct negative impact on business operations.
To be successfully deployed, full-fledged land reforms are time-consuming, costly, demanding an immense effort from governments and stakeholders. But a transparent land administration system—one in which all land-related information is publicly available, all procedures regarding property transactions are clearly documented and information on fees for public services is easy to access—minimizes the opportunities for informal payments and abuses of the system. Indeed, cross-country data show that the greater the quality and transparency of a land administration system, the lower the incidence of bribery at the land registry.
Thus, DLD’s new payment initiative will lead the way for other major global players in real estate to change the way they deal with land registration. Digital transformation is the new pathway for transparent business dealings and Dubai just showed us how quickly they can embrace the right technology at the right time.
(With inputs from Dubai Land Department and Doing Business 2018 report)