7 Common Challenges Real Estate Professionals Face In UAE
According to UAE real estate market statistics, the total valuation of the UAE real estate market will reach a whopping $690 billion by the end of 2023. The market volume currently stands at $390 billion and is expected to surge to $800 billion by 2028. Combine that with higher return on investment for investors, skyrocketing property prices and rising rents, you can see where the UAE real estate market is heading.
In this article, you will learn about seven common challenges real estate professionals face in the UAE.
7 Common Challenges Real Estate Professionals Face In UAE
Here are seven common challenges real estate professionals face in the UAE.
1. Ever Evolving Market
The UAE real estate market has evolved rapidly in the last few years. This has made it extremely difficult for real estate professionals such as real estate consultants, real estate developers and real estate agents to adapt. Even though the rapid evolution has led to positive changes which has brought the UAE real estate market in the limelight, adjusting to constant change is never easy.
For instance, the rising demand for luxury property has forced real estate developers to focus on it. Same goes for ever evolving rental and office environments. Real estate professionals must adapt to newer technology and learn to use it to their advantage in order to stay relevant in future.
2. Cut Throat Competition
The exponential growth in UAE’s real estate market has increased the interest of foreign investors. This sudden surge in demand provides an opportunity for new real estate businesses. Many new real estate businesses are looking to get a piece of that pie.
This has led to tough competition between real estate companies. This might be great news for buyers and investors as they can get cheaper rates. On the flipside, this might not be such great news for real estate professionals as they will have to work hard to attract new clients.
3. Complex Regulations
The UAE real estate market is heavily regulated. This means that everything is governed by strict and complicated government regulations. Understanding the legal and regulatory requirements is essential or you might get into hot waters. Sadly, this is easier said than done as you need technical knowledge to make sense of these regulations. You will have to hire a professional who understands these laws and regulations for this. This can add to the overall cost of doing real estate business in the UAE.
4. Cultural Considerations
In the United Arab Emirates, you not only have to fulfill legal requirements and ensure regulatory compliance but also have to keep cultural considerations in mind. The diverse culture of UAE makes it difficult for real estate professionals to thrive in such an environment especially if you are accustomed to western cultures.
5. Rising Customer Expectations
Another side effect for the highly competitive real estate market is that customer expectations are sky high. Since real estate buyers have a myriad of different options to choose from, they expect a truly personalized experience exactly tailored to their needs. When they don’t get it, they can easily switch real estate companies without wasting any time. Real estate professionals will have to work harder to enhance the customer experience, meet and surpass their expectations.
6. Technological Advancements
The pace at which technology is infiltrating the real estate industry forces real estate professionals to understand and master it. The steep learning curve attached to mastering any technology, resistance to change and lack of proper guidance makes it a daunting challenge for real estate professionals.
Gone are the days when you would call up prospective clients to come to your office and physically go to visit the property location to provide them with the tour of the property. With the help of technology, you can do all that without leaving the comfort of your room in the form of virtual tours. Technologies like virtual reality and augmented reality have made it more convenient than ever before to deliver a realistic and immersive virtual tour to your clients.
7. Working With Local and International Clients
Dubai attracts foreign investments like crazy. This means that you will be working with not only local clients but also international ones as a real estate professional in the United Arab Emirates. This might seem like a positive at first but once you dig deeper, you will have to tailor your message and communication to both local and international clients, who might have completely different preferences and customer behaviors. Catering the needs of both local and international clients is not easy..
Which is the biggest challenge you have ever faced in the United Arab Emirates as a real estate professional? Share it with us in the comments section below.
