Dubai owners sell directly to buyers

Owners of property in Dubai are increasingly skipping estate agents and selling directly to buyers.

The past quarter has seen a spike in "For Sale By Owner" (FSBO) sales, according to the Gulf News, as portals and word of mouth become favourite tools among sellers to reach an audience. Why? It is just to avoid fees, which can range up to 2 per cent of a property's price, or even higher to 4 per cent?

In the UK, a similar trend has also occurred in recent years, as the Internet allows a growing number of people to advertise their property themselves. At the same time, online estate agencies, which have no high street address and do not charge traditional commission fees, have also arisen to capitalise on the lack of normal charges.

Sameer Lakhani, CEO of Global Capital Partners, though, argues that there are other factors at play in the emirate, such as the "lack of credibility" of certain brokers.

"In the recent instance of a prominent broker going bust, there were numerous instances of 'price gouging' (the arbitrary hiking of values), he tells the newspaper, "as well as funds being misallocated that came to light."

"The Dubai Land Department and Real Estate Regulatory Agency have taken pains to instill transparency in the brokerage sector and these practices had declined significantly from what was occurring a few years ago," he adds, noting that some cases have seen prices hiked by as much as 5 to 10 per cent.