Dubai has “too many” property brokerage companies and agents, the CEO of the emirate’s Real Estate Regulatory Authority (RERA) has said.
Speaking on the sidelines of the Cityscape exhibition, Marwan Bin Ghalita said that 2,205 brokerage firms were currently operating in Dubai, with 5,021 agents on ground. He also said that up to 567 new brokerage offices has been set up in the emirate in 2014.
“The numbers are still small when compared to the past, when around 10,000- 12,000 brokers were operating in Dubai,” Ghalita said.
The agency is attempting to streamline the sector and Ghalita confirmed that four new regulations would be introduced by next year.
Firstly, the pass percentage for brokers taking the mandatory exam to renew their licenses will be increased to 85 per cent from the current 75 per cent. The exam was introduced in June this year and the new rule will come into effect from April 2015, said Ghalita.
Secondly, from mid-2015, Emirates IDs will replace broker ID cards as part of a new smart system. A new smart app will be able to track all the details about the agent, including when they change employers. The move will ensure that only licensed brokers operate in the market, said the CEO.
The third regulation which will come into effect next year will restrict new brokerage firms in Dubai from employing more than four agents. “We will monitor the agency’s work over the next one year, and if they perform well, we will allow them to hire a fifth agent,” said Ghalita.
The last regulation seeks to ensure better “professionalism” in the sector by tracking the work done by agents. If a broker does not officially record any transaction for six months, he will be warned, and if he doesn’t improve in a year, he will be asked to leave.
“These are all tough rules, but they will be implemented gradually and will ensure that agents are professional and well-informed about the market,” the RERA CEO added.