Brokers and agents have to adjust to changing market conditions, according to a Gulf News report.
In any industry, especially those yet to fully mature and develop such as Dubai’s real estate, there exists a natural process that essentially eliminates the weakest entities.
So, the fact that some brokerages are closing their doors is not worrisome from an industry point of view, the article pointed out. It is inevitable as the industry continues to mature and the well-chronicled — and welcome — phase of correction the Dubai market is experiencing has played a natural role in eliminating the weakest players that cannot compete and sustain their operations.
It is actually healthy for the industry as Dubai has too many brokerages. At the time of writing, there were 2,389 brokerages registered with Dubai Land Department. This is simply too many for the industry to support during the inevitable contraction or low growth periods. And one of the key drivers of industry maturation is to have fewer, but higher quality, brokerages and agents.
The levels of professionalism, quality and customer service in the industry still require a lot of attention. While good progress has been made by the Dubai Real Estate Institute (DREI) towards elevating the standard of real estate practitioners, too many poor performers remain, effectively hindering the development of the industry into the vibrant, efficient and transparent marketplace we all desire.