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28 March 2024

Salary surge: Dubai property brokers' commissions double

Published
By Shuchita Kapur

Doomsayers who predicted UAE property heydays were consigned to history have been proven wrong this year.

Property prices in niche areas have jumped up significantly and so have the brokerages of those helping to sell these properties.
 
According to a recent Jones Lang LaSalle’s (JLL) market report for the third quarter of 2012, Dubai’s villa prices rose by 23 per cent over the last 12 months alone as demand surged. Apartment prices also went up during the same period lesser as compared to the villas.
 
“The year has been very good for real estate agencies, especially the last four or five months. There is a lot of money coming into Dubai. Rich investors from neighbouring nations want to invest in a safe place like Dubai. Then, we have the Russians, Indians and Pakistanis who love to buy property in the city,” Ben Waddilove, Director at Macdonald & Company, a property recruitment consultancy, told ‘Emirates24|7’.
 
Prices, sales – and therefore commissions – are up “in select areas such as The Palm, Emirates Living, Dubai Marina, Arabian Ranches and Downtown,” he says.
 
For example, a senior sales consultant, with a very good network can now take home a monthly salary of anything between Dh30,000 and Dh50,000,” says Waddilove. “The same consultant could only make Dh20,000-25,000 in 2011 and the year before,” he says.
 
However, as with the recovery, the commissions are location-sensitive. “If somebody gets International City, then s/he can’t expect much,” elaborated Waddilove, adding that “experience and network” are also very important in determining the take home salary of any consultant.
 
Besides the hike in salaries, most reputed agencies are also hiring. “Many real estate brokerages are hiring. However, they are still reluctant to increase the basic pay for their employees but the upside on commissions is pretty high now,” said Waddilove.
 
“Looking ahead, we expect a good 2013 as more projects are being announced and confidence is returning to the market. Dubai Government is also investing money in the market,” he added.
 
According to Macdonald & Company estimates, a sales manager supervising 15 to 20 people and involved with business development can take home a guaranteed salary of Dh25,000-30,000 besides the commission.
 
A director or country manager can get a fixed salary of Dh40,000-50,000 per month plus bonus. There are no commissions in this category.
 
A consultant can, on an average, get a basic salary of Dh5,000-Dh6,000, medical and annual tickets. These professionals depend on the commissions they earn for their bread-and-butter.
 
On the other hand, there are some property brokerages that do not give a monthly salary to their consultants, but offer them a visa and workplace.
 
These set of professionals, however, have a bigger share in the commissions they earn through property rentals and sales.
 
The salaries for real estate professionals maybe seasonal but unlike many other professions, they do not need any particular qualification.
 
“No specific qualifications [are] required for real estate brokerage roles (although I would recommend the RICS qualification – but all real estate brokers must be registered with RERA and complete their short course,” explained Waddilove.