Dubai News: Double-digit drop in Dubai real estate companies
A total of 486 property companies and real estate brokerages failed to renew their licences in 2018, according to new data collated by real estate portal Property Finder.
According to Property Finder, data from the Dubai government’s ‘Dubai Pulse’ data initiative show that there are now 3,680 remaining brokerages that “stand strong in a market that is consolidated and refining its talents and offerings”, which respresents an 11% drop on the 2017 figure.
The Dubai Pulse data also shows that the number of agents increased 4 percent to 6,473, while, on average, the number of firms in the real estate industry has fallen 8 percent year-on-year for the past two years.
Additionally, despite exits, compared to 2008 the number of licensed brokerages has risen 129 percent.
“This is a sign of much-needed consolidation in the industry,” said Lukman Hajje, Property Finder’s chief commercial officer. “Fly-by-night operators who realised that their business model is no longer viable have been weeded out.”
Hajje added that it is “positive” for the industry that only 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,” he added.
Lynette Abad, Property Finder’s director of data and research, said that the development is a sign of a maturing real estate market in Dubai.
“We have always had an exorbitant number of agencies in this market,” he added. “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.”