Dubai property agents see 30% drop in commissions in H1

Real estate brokers in Dubai earned 30 per cent less in 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) from Dhs820m ($223.2m) in the first six months of 2017, a decline of Dhs249m ($67.7m).

The number of active brokers also fell 674 from 5,856 to 5,182 and registered offices 227 from 2,340 to 2,113.

Read: Dubai property brokers earn Dhs820m in H1 this year

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.

Read: Dubai property transactions drop in the first half of 2018

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.

Read: Revealed: Where Dubai property rents, prices decreased the most in H1 2018

Sales prices were also down 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.

Read: Dubai real estate slump to continue for another two years – S&P

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

Read: UAE’s 10-year visa expected to boost property market

The Dubai government 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 that is set to launch in the first quarter of 2020.

Read: Dubai gov real estate platform aims to cut out agents