Dubai real estate brokers record AED1.4 billion in profit
Land Department’s Real Estate Regulatory Agency releases the figures
Dubai’s real estate brokers achieved commissions totalling AED1.4 billion during the first ten months of this year, according to the Land Department (LD). The Real Estate Regulatory Agency (RERA), LD’s regulatory arm that oversees property transactions in the emirate, released the figure.
The reported figure covers the commissions that real estate brokers received from individuals and companies registered with the RERA. Transactions involved a standard two per cent commission based on the value of the transaction, unless both parties agreed on a different amount. The total transactions for the same period were valued at AED73,867bn, while sales accounted for the largest share by recording AED59,542bn, which also resulted in AED1,190bn as brokers’ share.
Transactions include all sales operations, selling usufruct, registering deferred sale, request for rent to owner (transfer), request of rent to owner (transfer) and registration of land addition by sale. It shows that land sales operations achieved nearly AED42,905bn, while sales of units reached AED27,568bn and sales operations were limited to buildings, with AED3,393bn over the three quarters of the year.
Yousif Al Hashimi, director of real estate licensing department at the RERA, says that the close monitoring of market operations and commissions by his organisation were instrumental for assessing and evaluating market conditions and trends that appear from time to time.
“The increase in activity and resulting rise in commissions from brokers can be taken as a sign of active movement taking place in the real estate market,” says Hashimi. “Besides giving us an invaluable insight into market conditions in general, we rely on these numbers to establish a comprehensive and accurate database. This tool allows us to assist interested parties who want to monitor real estate development and other related areas in Dubai, such as developers, investors, journalists and analysts, both from within and outside of the country.”
The RERA organises and controls the work of real estate brokerage companies in the market. Individuals and organisations can only engage in this activity if they appear in the register of real estate brokers with the department, pursuant to Regulation No. 85 issued in 2006. The department also provides services to protect the rights of real estate brokers, leasers and other transaction parties to promote transparency, good conduct and competition in the real estate market.