Consolidation time for Dubai real estate with fly-by-night companies exiting the market, reaffirming signs of a maturing property market in Dubai
486 real estate companies in Dubai did not renew their licenses for 2018, making way for transparent and professional firms to dominate
UAE based real estate portal Property Finder released the aggregate results of figures from Dubai Pulse, the open data platform initiative from the Smart Dubai Office, which is based on the fluctuations of the number of agents and real estate brokerages in Dubai.
A record 486 property companies and real estate brokerages that were in business in 2017 have failed to renew their licenses for 2018. Now, a total of 3,680 brokerages stand strong in a market that is consolidating and refining its talents and offerings.
With a 12 percent 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.
The Dubai Pulse data below shows the statistics of Dubai’s real estate market throughout 2018:
The number of agents has increased by 4% to 6,473
On average, firms in the real estate industry have reduced by 8% 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%
According to Lukman Hajje, Group Chief Commercial Officer, Property Finder, “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.”
“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 ” says Lynnette Abad, Director Data and Research for Property Finder.