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Tuesday, March 5, 2024

“Commissions for Off-Plan Property Sales in Dubai Reach Up to 15%”

In Dubai, private developers are enticing property brokers with commissions that go as high as 15%, as off-plan sales now dominate the market, accounting for over 70% of monthly property transactions. This surge in off-plan sales has created intense competition among developers to secure early buyers. To distinguish their projects in a crowded market, many developers are opting for higher commission rates.

Private Developers Lead the Charge

Established Developers Hold Steady

Unlike private developers, established industry giants such as Emaar and Nakheel are maintaining their standard single-digit commissions, avoiding the trend of soaring rates. In the past, off-plan commissions typically ranged from 4% to 7%. Meanwhile, commissions for ready property sales remain at around 4%, and rental deals are still being transacted with a 5% commission.

Booming Opportunities for Brokers

Two-tier Commission System

The attractiveness of off-plan sales has turned real estate brokering into one of Dubai’s most profitable professions. Broker commissions now reach up to 15%, with even larger private developers offering rates of 10-11% on their latest project launches. Developers face increased regulations by the Dubai Land Department, resulting in a smaller pool of agents for their projects.

Lucrative Landscape in Off-plan Sales

Double-digit Commissions in Focus

Brokers now operate within a two-tier commission system, receiving a standard 5% commission on any sale and extra incentives for bulk sales exceeding AED 10 million. This setup has propelled off-plan property transactions to prominence, outshining sales of completed homes in the Dubai property market.

Predicted Growth Amid Intense Activity

Off-plan Sales Surge

The recent influx of off-plan property launches indicates a busy month ahead, with the potential for more activity throughout the year. Although there are speculations of growth stabilization, some developer sources argue that the growth slowdown remains premature. The sight of buyers queuing up overnight to secure newly launched units demonstrates a strong demand, despite the fast-paced environment of off-plan property sales. For brokers, these soaring commissions present a golden opportunity to reap substantial rewards for their efforts.

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