DUBAI PROPERTY AGENTS SEE 30% DROP IN COMMISSIONS IN H1

Real estate brokers in Dubai earned 30 per cent less commission in the first half of 2018 than they did in the same period last year, according to Dubai Land Department.

Official figures showed brokerage commissions standing at Dhs571m ($155.4m) in H1 2018 from Dhs820m ($223.2m) in the first six months of 2017, a decline of Dhs249m ($67.7m).

The number of active brokers also fell from 5,856 to 5,182 and registered offices from 2,340 to 2,113.

The declines followed a 15.9 per cent drop in the value of property transactions in the first half compared to the same period in 2017 from Dhs132bn ($35.93bn) to Dhs111bn ($30.2bn).

A wider real estate slump in the emirate has hit sales prices and rents over the last two years.

Data from listings site Bayut.com showed rental rates down up to 15 per cent in some areas from the second half of last year to the end of the first half of 2018.

Sales prices were also down by up to 8.8 per cent in some areas during the same period, according to the company.

Credit ratings agency S&P said in a February report that it expected Dubai’s real estate slump to continue for another two years.

In May, the UAE introduced a new visa system that will allow property investors to stay in the country for up to 10 years.

The Dubai government has also announced several measures to reduce the cost of doing business in the country.

However, agents may be less welcoming of plans to reduce their role in property transactions via a recently announced online portal - set to be launched in the first quarter of 2020.