Thursday, 26 March 2015

Dubai Real Estate Brokers

Dubai as per its size has too many Real Estate Brokers; this was revealed by the CEO of Real Estate Regulatory Authority in Dubai. RERA has brought into play a number of new regulations that will bring down the total number of Dubai Real Estate Brokers in the coming years. During the Real Estate boom between 2003 and 2008 a large number of Real Estate Brokers and developers entered the UAE market and this was one of the many reasons for Real Estate slump in 2008.As per RERA there are 2205 brokerages registered in Dubai and the total number of brokers is 5021 which is still a lot more than what could be better for a regulated market.
RERA introduced four new regulations to control and ensure only qualified brokers having complete knowledge of Real Estate Brokerage procedures enter and operate in the market.
The number of marks required to pass the broker’s license test was increased from 75 to 85 percent which will ensure that brokers wanting to enter the market will read and understand the regulations and will also stay updated with the changes.
The Broker cards will be linked to the Emirates identity card.
New Brokerage companies entering the market will not be allowed to employ more than four agents in the first year of its operations and only after assessing the performance of the firm for the first year it will be allowed to increase the number of employees.
Any Real Estate Agent who will not complete a transaction between six months to 12 months will receive a notification regarding the performance and will need to show proper improvement in order to keep the registration intact.

The Real Estate market in Dubai has seen a timely correction in sales prices and the market outlook looks promising, though a drop in sales prices is expected but this will have a positive effect to keep the market stable and avoid any overheating.

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