Stronger players 'emerge winners in Dubai property sector'

With a 12 per cent decrease from 2017 to 2018, registered property companies have continued to exit the market as stronger players emerge with a focus on customer service, data, knowledge and information, said a report by Property Finder, a leading UAE-based real estate portal.

A record 486 property companies and real estate brokerages that were in business in 2017 have failed to renew their licenses for 2018, stated the portal in its latest report citing aggregate results of figures from Dubai Pulse, the open data platform initiative from the Smart Dubai Office, which are based on the fluctuations of the number of agents and real estate brokerages in Dubai.

True to the adage, Survival of the Fittest, now, a total of 3,680 brokerages stand strong in Dubai’s property market, which is consolidating and refining its talents and offerings.

The Dubai Pulse data below shows the statistics of Dubai’s real estate market throughout 2018:
•The number of agents have increased by 4 per cent to 6,473
•On average, firms in the real estate industry have reduced by 8 per cent year-on-year for the past 2 years
•486 property companies and real estate brokerages exited the market in 2018
•Despite exits, compared to 2008, the number of licensed brokerages has grown by 129 per cent.

Lukman Hajje, the group chief commercial officer, Property Finder, said: "This is a sign of much-needed consolidation in the industry. Fly-by-night operators who realised that their business model is no longer viable have been weeded out."

"This is a positive for the industry and only bonafide property companies with verified credentials will continue to operate, making the market more streamlined and transparent. This is a win-win situation for both buyers, sellers and all property stakeholders," he stated.

Lynnette Abad, the director data and research for Property Finder, said: "Over the past few years, we have seen many signs of a maturing real estate market in Dubai and this is indeed one of them."

"We have always had an exorbitant number of agencies in this market, therefore the fact that the number of agencies is reducing is a positive sign, leaving opportunity for the more experienced and professional companies to grow," he added.