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Real estate is selling like pan cakes in UAE for Indians

Real estate in UAE

The people in the gulf countries are like that. The are more penchant for acquiring the physical assets. This trend has been present since a large part of the previous decade now. The are many derivatives to this. The main reason which culminates this is the financial soverneity that the people are enjoying in the gulf countries are immense.

The amount of money that they gain because of the trade of oil and its other affluent good is not a measurable quantity.

And the second reason is the use of technology. People now  a day use the mobile technology, to make online payments and then surf through the website of the various property vendors.

The government is leveraging on the points of many aspects of real estate by giving the open subsidy accounts and the use of online banking service has become mandatory.

There is point in every Indian that they take pride in owning their own property. All the already constructed houses are being rented out and the empty places will be open for sale through EMIs as well.

May Indians do a lot of research about the real estate that are present in UAE. Individual investors take the help of the Real Estate Investment Trusts REITs, which helps them in growing high.

In the UAE the commission rate is usually between 2.5% to 5% for junior real estate agents. Senior real estate agents can make up to 7% or sometimes in extraordinary situations up to 10%.

There are a reasonable potential buyers who are waiting to get affordable prices. Almost all the markets in India and the people are reeling on the real estate and to but\y projects of good reputation and credibility. The buyers today have become more aware of the Indian real estate market and know what will work and what will not.

Some real estate agents in Dubai have resorted to charging commission fees to both buyers and sellers in a bid to bolster revenues that have fallen by nearly two-thirds, industry sources said.

Agents who raked in profit at the peak of Dubai’s housing bubble are now doubling up on fees after monthly real estate transactions in the Gulf emirate fell 70 percent from the boom of 2008.

“The fee charged by agents is two percent and this fee is the responsibility of the buyer,” said a Dubai-based agent, who asked not to be named. “What has changed is the opportunity for agents to earn from both sides, as sellers who are keen to dispose of their property can also pay.”

The practice is not illegal if both parties are told of the charges, the agent said.

Property prices in Dubai soared after the city opened its real estate sector to foreign investors in 2002, granting them freehold ownership rights at many developments. Between 2007 and mid-2008 prices in the emirate rallied almost 80 percent, according to Morgan Stanley.

Agents selling during the city’s boom years could earn up to AED250,000 a month as speculators flipped properties and pushed up prices, said Priyesh Patel, real estate agent at Aston Pearl Real Estate.

“In the years of 2007-8 you could expect an average agent to take home between AED50k-80k per month and the better sales agents would take AED150k-250k per month,” he said.

But the collapse of the housing market in late-2008 saw property prices more than halve, and a slew of luxury real estate projects cancelled – which slashed the earning capacity of agents.

“ we are left with better and honest agents whom now still can take home AED30k – 60k per month but there is a lot of work and hours involved these days, whereas before we could earn sitting at our desks,” said Priyesh.

On a concluding note, the real estate in UAE is booming. Hope you’ve got your share upright!
 

BY UITV, DEC 1