UAE Real Estate Brokerage Firms Face Crisis | Push Digits Chartered Accountants

UAE Real Estate Brokerage Firms Face Crisis

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Inadequate numbers of secondary marketing projects have affected the survey as well. Dubai is going through a hard time regarding the retail business, as some small firms discontinued and the big firms, on the other hand, discharged their workers. This situation may worsen during the time of Ramadan and summer break, as Dubai is about to experience more unemployed brokers.

The recent launches were meant to deal with the only single firm which does the selling, however, this did not help the situation at all. Managing Director at Global Capital Partners, Sameer Lakhani, says that the drop in transitional jobs has caused several broker firms to become officially unviable. Also, exposure of some activities related to corruption, caused a decrease in the number of buyers.

He continues by saying that the losses suffered by the buyers in 2008 is in no way equal to the current crisis. This was largely due to the mistake made by the Real Estate Regulatory Agency. This ensures that a strong grip is needed to protect smaller companies.

This year, more than 10 retail companies went out of business, and the number of layoffs is five times more than that of large companies.

Officially, there are, more or less, 2,300 registered retail companies in the land departments in Dubai, and they all offer brokerage services.

The retirement of secondary market transactions virtually has caused an impact on 80% of the firms. This situation can be survived by those agents who are dedicated to their clients and the clientele base. This was told by the CEO of Al Madina Al Raeeda Real Estate, Juwaad Beg.

He further adds that a lot of entries were there during 2011-14, as they were earning money, and this way, it seems to be easy. This was also believed to be the so called easy way of making money, and will last till 2020. But as this did not happen, the sufferers were the small retailers.

Now, the necessity of the cost will be felt by the surveyors as the secondary market has gone off.

The biggest source of the business, which directs all the survey related tasks, are Banks, and they will go down, as the few consumers exploring around for the projects are offered secondary market deals.


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