(MENAFN- Khaleej Times) Dubai's real estate brokers achieved commissions totalling Dh1.4 billion during the first 10 months of this year, according to the Dubai Land Department (LD).
The figure was released by the organisation's Real Estate Regulatory Agency (Rera), the department's regulatory arm which oversees property transactions in the emirate.
The figure reported covers the commissions that real estate brokers received from individuals and companies registered with Rera.
The transactions involved a standard (two per cent) commission based on their value of the transaction, unless both parties had agreed on a different amount.
The total transactions for the same period amounted to almost Dh73.867 billion, while sales accounted for the largest share by recording Dh59.542 billion, which results Dh1.190 billion as brokers' share. Transactions include all sales operations, selling usufruct, registering deferred sale, request for rent to owner (transfer), request of rent to owner (transfer) and registration of land addition by sale.
And from the details it shows that land sales operations achieved nearly Dh42.905 billion, while sales of units Dh27.568 billion, sales operations were limited to buildings with Dh3.393 billion over the three quarters of the year. Yousif Al Hashimi, director of the real estate licensing department in Rera, said that the close monitoring of market operations and commissions by his organisation was an activity instrumental for assessing and evaluating market conditions and the trends that appear from time to time.
"The increase in activity and the resulting rise in commissions from brokers can be taken as a sign of active movement taking place in the real estate market," said Hashimi.
"Besides giving us an invaluable insight into market conditions in general, we rely on these numbers to establish a database comprehensive and accurate database. This tool allows us to assist interested parties who want to monitor real estate development and other related areas in Dubai, such as developers, investors, journalists and analysts, both from within Rera organises and controls the work of real estate brokerage companies in the market.
"Individuals and organisations can only engage in this activity if they appear in the register of real estate brokers with the department, pursuant to Regulation No. 85 issued in 2006. The department also provides services to protect the rights of real estate brokers, leasers and other transaction parties to promote transparency, good conduct and competition in the real estate market," he added.
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