Dubai’s real estate property intermediaries, companies and individuals, registered under Real Estate Regulatory Authority (RERA), earned around Dhs785 million in commission during the first half of the year, the latest Land Department (LD) figures reveal.
As per RERA stipulations, the brokers receive a two per cent commission based on the value of the transaction, unless there has been another agreement between the parties for a different amount.
“The commission, in turn, is an indication of real estate deals that include the lease and sale of both commercial and residential units with a total value over Dhs39 billion for the first half of the year,” explained Yousif Al Hashimi, director of real estate licensing department in RERA.
Al Hashimi said that gauging the value of commissions has become more accurate owing to the LD’s current efforts in establishing a comprehensive database for the industry.
“These figures are important as they allow us to assess trends and determine the value of growth in the sector,” he added.
In a bid to introduce more transparency in real estate transactions in Dubai, all activities carried out by an individual or a company have to be registered with RERA.
Dubai, which went through a property bust in 2008, is slowly recovering with investor interest picking up in the first half of this year.
According to the LD’s semi annual report, the emirate’s real estate market attracted investments worth Dhs53 billion in total during the first half of the year, a 49 per cent year-on-year increase.
The report also revealed strong foreign investment interest as foreign investors contributed 32 per cent of the total transactions during the first half of this year.
Sultan Bin Mejren, director general of LD, credited the surge of investments in Dubai’s real estate to the efforts of the government to promote the emirate to investors looking for a safe haven for their investments.
The department expects to see an “unprecedented amount of spending” in the future, he added.