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Dubai property brokers made USD 229 million in the first nine months of 2018

Dubai Land Department (DLD) has announced that property brokers in Dubai made commissions worth USD 229 million (AED842 million) in the first nine months of 2018.

A total of 18,121 transactions were carried out during the period between January and September.

Research compiled by the Department of Real Estate Studies and Research of Dubai Land Department showed brokers making AED 429 million from land sales, AED 73 million from building sales, and AED 340 from residential sales.

Yousif Al Hashimi, deputy CEO of the Real Estate Regulatory Agency (RERA), said: “Brokers play an important role in attracting international investors to Dubai’s real estate market, highlighting the market’s unique characteristics.

“DLD developed a comprehensive system to protect the rights of brokers in every successfully concluded transaction between the selling and buying parties. Brokers are among our most important partners, especially as they exercise their duties with the highest degree of honesty and integrity while adhering to the procedures and standards set by DLD.”

The number of accredited permits issued by DLD to real estate brokers totalled 4,686.

Dubai’s property market has been softening recently, with sale prices and rental rates falling year on year.

According to Chestertons’ Q3 2018 Observer, average apartment and villa prices were down 6% in Dubai in Q3 compared with the previous quarter. Average rents declined at a lower rate, down 4% in Q3 compared with Q2.

The fall in values is a result of additional supply coming to the market, giving buyers and tenants more choice.

Around 10,000 units are expected to be delivered before the end of the year and 70,000 units before Expo 2020. This pipeline of new supply should help to keep sales and rental rates under control.