Our duty is to enlighten a misled market

Upon closer look, buyers realize there are only a few genuine sellers’ listings

Why are properties so expensive to buy? Why can’t I sell my property for more? These are the two most common questions agents are being asked at the moment. These, then,beg the question of what is a good representation of the market? To get an understanding of what is actually happening in the market agents need to first question themselves.

Looking at property listing in today’s various property portals, most people can safely assume that,firstly, there are plenty of properties available for buyers, and secondly,that sellers are asking for a lot more than in previous months, which is, of course, quite understandable with the current positive market sentiment.

However, looking more deeply than just covering the mere surface – simply by taking an extra step and finding out how many of these properties are actually available, you come to the stark realization that actually, there is a very limited number of genuine sellers with listings in the market.

The reason for this is that many of the real estate agents in Dubai don’t regularly check with their sellers if their properties are still available. At the same time, property listings are not regularly updated, and agents list properties that are clearly above the market rates.

Sellers that look to the market to get an understanding of how much their property should be marketed come across countless properties listed above current market averages.

Unbeknownst to them, these properties have been listed by inexperienced agents, or agents who are simply playing a numbers game to get more listings at any cost, even if this means creating a false market. The same properties would have also been listed for long periods of time, and are unlikely to sell until the market changes. Without this vital knowledge, seller’s expectations are increasingly moving upwards. On the other hand, you have average buyers who are actively searching to buy a property for their own use or maybe as an investment, but they are, on average, seeing the same property on various portals listed with vague and mostly incorrect descriptions with a wide price range. Aside from these two aspects of listings, there are also many properties that are no longer available and have been sold, in some occasions more than two or even three months before.

Combine these two aspects of day-to-day dealings of agents and you get a very bad formula for buyers’ and sellers’ expectations with an increasing divide between the two.Again, all agents should be looking to themselves for an explanation as they are one of the biggest reasons (as illustrated earlier) why this is happening.Agencies complain the market is moving too quickly, and that there are no genuine sellers at the moment. It is the responsibility of qualified agents to educate sellers (and buyers) on current market rates with evidence of comparable properties. Everybody wants the market to move upward, but at a steady pace with sound advice.

If we, as agents, take greater care in qualifying owners realistically while also educating them as to what is a realistic market rate, we will greatly improve the market and eradicate the challenges we are all facing as agents, sellers, landlords, buyers and tenants. By removing properties that are no longer available from listings, we also eliminate the doubts in buyers minds as there would be no opportunity for them to wonder about properties that are no longer available.

As real estate agents, we should do more to assist in the development of the Dubai property market because we all know that in the end, we will definitely profit from it.

Safura Abas

General Manager, Aston Pearl Real Estate

The only way is up with a good marketing plan

With such an amazing end to the year 2013, culminating in Dubai hosting a number of highly impressive fireworks displays on New Year’s Eve, the emirate winning the Expo 2020 bid already put it firmly on the map, and with it will come a massive influx of both people and investments in the region which will then boost all verticals, not the least of which is the real estate market.

With property prices being based on supply and demand, the market will now realign with current economic growth as many more developers are moving into the area and, as a result, many more projects are being commenced. The new rent decree now in place capping all rent increases is meant to further realign the market; consumer confidence will be gradually restored, and spending  within Dubai will increase which, again, is favorable for the real estate market as a rise in investments within the sector is also expected. Tenants will now be able to budget in advance for their rents without the worry of rents rising to potentially dizzying heights, eliminating any unpleasant surprises, and, in turn, helping stabilize their cost of living.

Winning the Expo 2020 bid has brought with it much media attention now focused on the region, and a more elevated degree of hype, with some greedy sellers attempting to cash in on this, raising  their property prices to unrealistic levels, which naturally causes disruption in the marketplace making it look unstable.

These types of sellers reject good offers on their properties in favor of holding out until the market reaches their level of expectations, which could take months, slows the sales process down massively and falsely increases demand. It is a good thing that most sellers genuinely want to sell their properties as quickly and painlessly as possible. As a rule, sellers are advised to only list their property with a maximum of three different brokerage firms; however, many owners choose to list their property with multiple agents which then saturates the market. The property price will most probably differ between agents whom the buyers will see, causing them to become very cautious, creating understandable concern and putting real estate agents in a bad light.

As real estate brokers, we are often asked about the benefits of sellers entering into an exclusive agreement with a brokerage firm. Establishments like ours offer bespoke exclusive arrangements  which center around the individual client’s specific requirements and preferences.  The advantages of dealing with just one agent are numerous; however, the primary angle is forming a mutually beneficial business partnership, building rapport and, as a result, having complete understanding of a client’s needs. Clients will not be disturbed throughout the day with many agents cold calling them, and can arrange a convenient time to speak with their exclusive broker to get updates. Only one agent whom they trust will have access to their property as opposed to people  whom they don’t really know, which gives the client peace of mind, security and, most importantly, quality of service. There is no risk of duplicate viewings as each potential buyer will be properly qualified prior to the viewing which will avoid wasting time. The exclusive agent will know the property in detail and be able to advise potential buyers, which builds their confidence and aids buying criteria. With the right marketing campaign and photography, the property can be more aggressively featured and will be more visible to the required target market, so by the law of averages should sell in a shorter span of time.

Safura Abas

General Manager, Aston Pearl Real Estate