Total commission earned by Dubai real estate agents touched Dh800 million by end of November, Dh100 million over what they made in the whole of 2011.
Real Estate Regulatory Agency (Rera), the regulatory arm of Dubai Land Department (DLD), said the commissions reflect the total yield of various property deals that included the sale of lands, villas, residential units (apartments and hotel apartments) and offices in freehold areas, amounting to Dh40 billion.
Last year, brokerages had made Dh700 million on total deals of Dh34bn.
Brokers receive one per cent of the deal value as a commission, unless parties agree otherwise.
The safe haven status of Dubai has bought international investors back into the market, leading to an increase in property prices. International consultants have reported villa prices jumping nearly 20 per cent year-on-year, while apartment prices rose seven per cent.
In order to ensure that property agents adhere to the regulatory guidelines, Rera mooted the idea of having brokers being fined than their companies if they were found to have misled investors, co-operated with unlicensed brokers or made unsolicited phone calls to their clients to promote/advertise a project.
Currently, a fine of Dh50,000 is imposed on brokerage firms if they are found violating regulations despite warnings. The fine increases to Dh100,000 for repeated violations and even to blacklisting and cancellation of license.
To bring an end to “ghost” listings and post the rent scam being unearthed, Rera launched Simsari, the official multiple listing service.
Properties registered on Simsari.ae get a single and distinct number, which prevents repetition. The system guarantees the accuracy of information
and aid in updating real estate reports.
The regulatory agency imposed fines of Dh900,000 on 22 real estate companies and brokerage firms during the first half of 2012 for violations.
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