Property commissions total Dh700m

Total commissions earned by real estate brokers, companies and individuals, in Dubai amounted to almost Dh700 million for 2011, according to Real Estate Regulatory Agency (Rera).

Yousef Al Hashmi, director of Rera’s Real Estate Licensing Department said the commissions reflect the total yield of various property deals that included the sale of lands, villas, residential units such as apartments and hotel apartments and offices in freehold areas, valued at Dh34 billion.

He pointed out that the continuous efforts by RERA to set up a comprehensive, accurate database that covers all aspects of the real estate development sector and relevant professions have made it easy to come up with accurate statistics on brokers’ commissions, compared to previous estimates.

Real estate brokers receive one per cent of the deal value as a commission on successfully sealed deals, unless parties agree otherwise.

The real estate brokers’ register in Dubai is regulated by the law no. 85 of 2006 concerning regulation of real estate broker’s register that restrict brokers from mediating in the sale, purchase or marketing of properties that are not listed at the Dubai Land Department.

Brokering agencies and agents are listed through the sale registration process within the department system, which helps document and protect the brokers’ rights and facilitates the preparation of such reports.

Al Hashmi said that the Rera not only effectively applied the items of the bylaws, but also formed quality initiatives and applied the best international practices in the sector to raise the levels of professionalism in brokering in Dubai.

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