What will happen when UAE prices are linked to global markets?July 27, 2015 3:00
Real Estate Brokers’ commission reaches Dhs785m in first half of 2013
August 21, 2013 2:26 by kippreport
The Government of Dubai Land Department (LD) has revealed that the total value of commission to property intermediaries, companies and individuals – registered under RERA, the regulatory arm of the Dubai Land Department – has reached over Dhs785m in the first six months of the year.
Under RERA, brokers receive a standard 2% commission based on the value of the transaction, unless both parties agree on a different amount.
Yousif Al Hashimi, Director of Real Estate Licensing Department in RERA explained that commission in turn is an indication of real estate deals that include the lease and sale of both commercial and residential units with a total value of over 39 billion for the first half of the year.
“Gauging commission has become more accurate thanks to the on-going work of the LD to establish a comprehensive database for the industry. These figures are important as they allow us to assess trends and determine the value of growth in the sector.”
It is no longer possible for any individual or company to carry out real estate activities without being registered with RERA, and the authority in turn has been able to instill more confidence and transparency with regards to these transactions. Additionally, the LD and the Department of Economic Development in Dubai regularly carry out inspections to ensure that no violations occur. Regulations are there to protect the rights of all parties, and in turn raise the standards of the sector.
Al Hashimi further points out that the LD and RERA are committed to applying the best international practices in regulating the real estate environment found in Dubai, as part of a mission to further attract investment to the emirate.