ARE YOU TRYING TO FIND YOUR DREAM HOME? OR LOOKING FOR A GREAT PLACE TO INVEST? OR SIMPLY TRYING TO SELL YOUR PROPERTY?
Yes, but you don’t know how, where and when – and there are so many places available!
The number of properties advertised online seems immense, yet this number can be misleading. Many home seekers can relate to the experience of calling round multiple agents, only to be offered the same property again and again. It quickly gets to the point where frustration and confusion are the only things you can be sure of.
The good news is that, with a bit of commonsense, it is easy to identify the places that have dual or – worse – multiple listings. Let’s take, for example, a building in DIFC which, according to the developer, has 84 one-bedroom apartments in the building. Now, looking at just one portal it seems that there are 66 units for sale. In reality, the number of units actually for sale is much smaller. By closely examining the listings, it becomes clear what looks like two different apartments are, in fact, the same place. It is a trick of some agencies that they show the same unit posted multiple times with different prices to attract prospective buyers.
This is where the confusion really starts. Prospective buyers may end up making numerous offers via multiple agencies for the same property. In the belief that the market is oversupplied, prospective buyers will expect to be able to negotiate a lower price. The seller, inundated with offers from multiple agencies or brokers, believes there is high demand and expects to be able to extract a high price. This makes it very difficult for both parties to reach a mutually satisfactory price.
As with every other market, Dubai’s real estate market is driven by supply and demand, and this artificial oversupply, I believe, is currently one of the Dubai property market’s biggest problems.
Dubai undoubtedly needs more housing. The current supply may be at the high end but it is expected to meet the demands of a gradually increasing population over the next few years. But the artificial oversupply, unfortunately, has been always a problematic feature of Dubai’s real estate market.
Buying a property is one of the most valuable investments we can make. Sellers must choose their broker carefully, provide a clear (and realistic) timeframe in which he expects the transaction to be completed, and monitor the broker’s efforts and progress to get the best result possible. A professional, trusted broker, who has all the necessary information about the property, will be motivated to do his level best to provide a good service and deliver results.
Fortunately, the government and some property portals are working towards creating a better-regulated market by putting a number of rules and regulations in place. Dubai’s Real Estate Regulatory Agency (RERA), for example, is introducing a rule stipulating that a property can be listed with a maximum of three agents. It is hoped this rule will be implemented soon. Some of the major agencies have started to work on an exclusive listing basis or will now take on listings only if all the paperwork is in place. Another excellent initiative comes from a local property portal which is now offering to verify its listings. This will give prospective buyers confidence that the listing agent has all necessary documents (title deed, passport copy Form A) and that the property is legitimate.
It boils down to education and discipline: the major real estate players must to their bit to educate buyers and sellers, and be disciplined enough not to accept just any listing.
I have been involved in the local real estate business over the past 10 years and I see great potential in this still-growing market. I firmly believe that with professionalism and discipline, we have a bright future before us.
Sales Manager, Roots Land Real Estate