As Managing Director of Sales and Development at DAMAC Properties, I’ve had the privilege of witnessing first-hand the invaluable contribution that agents and brokers have made to the UAE real estate market.

Last year, analysts from Knight Frank identified Dubai as the world’s strongest prime property market, owing to a 58.9% year-on-year increase in prices. This level of performance simply wouldn’t have been possible without the efforts of the thriving community of real estate agents and brokers that call the UAE home.

It never fails to surprise me, therefore, when people ask why we need agents and brokers in the first place. Those unfamiliar with our sector sometimes assume it would operate more efficiently if buyers and investors dealt directly with sellers and developers – a misconception that paints agents and brokers as mere ‘middlemen’.

In my opinion, this comes down to a fundamental lack of understanding surrounding the value that these professionals add. So, in this blog, I intend to explore the function of agents and brokers in a bid to highlight their essential role in real estate markets both here in the UAE and around the globe.

Putting customers first

Forward-thinking developers like DAMAC always endeavour to place the needs of their customers front and centre. In our experience, focusing on buyers’ requirements rather than sales alone is by far the best way to forge long-term relationships and secure brand loyalty.

But regrettably, this approach is not ubiquitous. Rather than allowing the quality and value of their properties to speak for themselves, less scrupulous operators place sales above all else, regardless of whether their assets represent the right fit for consumers.

This is why a community of knowledgeable agents and brokers is a prerequisite for any thriving real estate market. These individuals bring high levels of expertise to customers, providing them with objective and accurate advice on, what is for many, one of the largest investment decisions they are ever likely to make.

Integrity and accountability

Thanks to the UAE’s consumer-centric approach to legislation, agents and brokers who wish to operate in the Emirates have to meet a series of stringent requirements.

Last year, for instance, our nation’s Ministry of Economy and Ministry of Justice issued a joint statement mandating that all real estate transactions equal to or in excess of AED 55,000 must be reported to the relevant authorities. While the primary objective of this legislation is to prevent our sector from being used for the laundering of illicit funds, it also helps to reassure legitimate buyers and investors that their money is in safe hands.

There is also the long-standing Bylaw No (85) of 2006 regarding the Regulation of Real Estate Brokers Register in the Emirate of Dubai – more commonly known as the ‘Brokers Law’ – which is overseen by the Real Estate Regulatory Agency (RERA) and prevents unlicensed outfits from operating. This legislation requires brokers to adhere to a selection of strict criteria while ensuring consumers have appropriate channels of recourse in the event of a disagreement.

Put simply, whether you’re planning to buy, sell, let or invest in UAE real estate, you can rest assured that local agents and brokers have a comprehensive understanding of the regulatory environment and will be held accountable if they fail to meet their responsibilities.

Healthy competition

Last but not least, a thriving network of agents and brokers also helps to maintain healthy competition among real estate developers.

At DAMAC, we strive to deliver world-class communities and homes that exceed the expectations of end users while offering attractive returns on their investments. This also reflects our commitment to helping to maintain the UAE’s status as one of the best places to live on the planet.

By representing buyers and investors, local agents and brokers play a crucial role in our company’s product development process, ensuring that we continue to supply demand and outperform our competitors.

By stimulating competition and motivating our team to go the extra mile, agents and brokers have played a pivotal part in DAMAC’s journey to becoming a market-leading, multibillion-dollar real estate developer.

From integrity and expertise to impartiality and accountability, agents and brokers have made countless contributions to the world of real estate. It should come as no surprise, therefore, that 95% of global property transactions are still conducted through these professionals.

It’s important to remember that buying and selling properties can be a complicated and lengthy process, which is why it’s vital that customers have access to expert advice and independent representation. From a personal perspective, I also appreciate how important it is for developers, agents and brokers to work as a team to deliver the best possible experiences to consumers.

Ultimately, no matter how the UAE’s real estate industry evolves in the future, I’m certain that agents and brokers will continue to add value for buyers, sellers and investors across the Emirates for many years to come.