The biggest property deals in the world are about being affordable, not about being good value, according to real estate experts.
A new survey of more than 1,000 real estate agents across the Middle East and North Africa has revealed a widespread lack of confidence in the sector, which has been accused of overspending and under-investment.
This year has seen record prices, with prices rising at an annual rate of around 25% for the first time since the recession.
“I think the market is undervalued, and I think we need to start talking about it,” said Ahmed Alhassan, managing director at Abu Dhabi-based real estate broker Jadidah Group.
It’s a message echoed by many of the agents in the survey, which asked them about their experiences working in the business. “
But the problem is, when you see a project like this, you think, well that’s real, and it’s a building, but what about the real estate?”
It’s a message echoed by many of the agents in the survey, which asked them about their experiences working in the business.
A survey of the top 200 property deals conducted by Jadideh Group last month found that only a third of respondents said that the prices they were paid for their services were “fair”.
In fact, only 25% said they were being paid fairly for their work.
“We don’t see the real value of the deals we make,” said Alhasan.
“It’s the deal itself, the whole experience.”
He said he could see many agents who had “a good deal” in their portfolio being worried about over-priced properties, particularly in Dubai.
“If a project is priced way too high, then you are in trouble,” he said.
“And there’s a real risk that you might be selling something that you don’t need and will only get value if it’s worth it.”
And some of the worst news is for young buyers.
A quarter of respondents (24%) said they had seen a real estate agent sell a property that they had already sold.
Many said they have seen agents sell properties for a higher price in order to buy the same property at a lower price.
Alhashan said he also saw agents selling properties for far more than they should have, including ones that were being rented at a loss.
“A lot of young people are looking for that type of property,” he told the BBC.
“They want to save money, they want to take the chance.
But if the realty agents are selling them at a huge loss, you are really seeing that.”
The survey also revealed that most real estate professionals felt that there was a lot more pressure on agents in recent years to deliver a higher-than-expected return, with 27% of respondents saying that they felt pressure from agents to sell a project that was already on the market.
“That pressure can cause a lot,” said Ali Alkam, a realtor with the UAE’s leading real estate brokerage, Al Ahli.
“Some agents will just sell their project and take the profits.”
Alkams firm also surveyed a different group of agents and found that the pressures were becoming more pronounced.
“More agents are asking more, more pressure is coming from the board,” he explained.
“So I think it’s not a coincidence that we are seeing more real estate issues.”
Many of the companies listed on Jadids real estate website, such as KKR, Wipro, and FMCG, are now facing serious investigations and penalties for misleading investors and customers.
“These problems can’t be solved without a change in management, a change to the way they work, and a change of mindset,” said Jadidalah’s Alhassi.
The survey results suggest that real estate is being pushed into the spotlight by the new era of the “internet of things”, in which it is becoming a key part of modern life.
The new internet of things is becoming an increasingly common element of everyday life, with many products being connected to the internet.
But experts are worried that the “digital economy” is causing the real world to become increasingly connected.
“When you look at the digital world, you look to see the digital and the physical world, and you see that there is this digital and physical world that is interconnected, but there is a digital world and a physical world,” said Mohamed Alhaj, director of the UAE Centre for Technology and Society.
“The digital economy is really transforming the relationship between the physical and the digital.”
“In a digital environment, you can access anything. “
You can look at anything. “
In a digital environment, you can access anything.
You can look at anything.
If you want to make a mobile phone call, you could