The Five Challenges When Starting a New Homes Real Estate Dubai Company


The recent development and addition of new homes real estate Dubai housing means the emirate is increasing supply to meet housing needs and demands for the growing population. The increase in housing means opportunities for not just the already established real estate companies but also for newly emerging ones. Here you are, ready to dive into this business venture and ready to start your own company. Being an entrepreneur, you deemed the Dubai brokerage business as highly feasible and very good for investment. You do expect rough roads ahead and expect challenges along the way which your company needs to overcome. If you do think so then you are on the right track for establishing a good real estate company. Below are some obstacles that you will be facing when starting a real estate company in Dubai.

Five Common Obstacles for New Real Estate Companies 

Unpredictable Costs

Costs if not taken seriously can lead to an escalation of overheads in this business. You should always watch out for any changes to the cost of homes for rent Dubai properties, the bills, expenses, salaries, licensing fees and regulation fees. Among the other business sectors, real estate cost are much higher and advertising for this venture is a costly matter.  

Expect Fierce Competition

Competition in Dubai is really fierce. There are now nearly 2,000 real estate companies properly registered with the Dubai Land Department. Those are the number of companies your own will be competing against and can you imagine the numbers of brokers in Dubai? Too many.

Low Net Margins

Commission-only basis is still the norm because entrepreneurs consider this as a good thing to curb salaries. They will only realize in a few years that net margins for their business remain very low. This is because top real estate agents are getting half to more than half of all commissions often exceeding the salary rate of those in managerial positions.  

Unique Listings

Not like its Western counterpart, property listings in Dubai is not exclusive to just one agent but rather with many agents. Due to the difference in real estate listing process, an agent among the many can only get paid until the documents are complete, with a signature and the deposit has been verified. This unique listing procedure of no single agent exclusivity deal mean that agents will be competing with each other.
 
It’s a Risky Business

You have to play your cards when investing in a real estate agency. The risk of brokerage are high considering the unstable revenue and difficulty of surpassing the breakeven point. After learning and overcoming the many obstacles and challenges is the point wherein your company can attain a good investment return.

Searching for one of the top real estate companies in Dubai? Come and visit Zawaya Property and become a partner to a well-established real estate company.



Tags: property listing, homes for rent dubai, new homes real estate dubai



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