Are you considering starting a real estate career in the UAE, but are unsure of how the industry functions? We’re here to answer all your questions about the types of brokerages in the country and the commission structures you will have to choose from.
Read on to find out the three major types of real estate brokerages in the UAE, the commission splits offered and the perks and cons of each. We’re also sharing some insider tips on how you can pick the real estate agency that can launch your career.
Types of Brokerages in the UAE
Before you begin applying for real estate roles, you need to decide the real estate firm you would like to be working with. In the UAE, there are broadly three types of real estate brokerages.
- International Franchise Operations
- Local Franchise Operations
- Boutique Operations
International Franchise Operations
These are brokerages with branches worldwide. Usually an international brand, they tend to offer a multitude of resources and training sessions to new joiners.
On the other hand, joining an international brokerage means having to deal with competition and sticking to a schedule given by the management.
Local Franchise Operations
These are brokerages with multiple branches in the same country. Known for being specialists in specific areas, they are usually trusted by residents for their expertise.
Local franchises sometimes tend to host regular recruitment drives to hire new talent. This can lead to coping with cutthroat competition between your peers.
Boutique Brokerages
Small scale real estate brokerages that run independently are classified as Boutique Brokerages. Although flexible with timings, they offer limited access to resources and technology compared to their peers.
Deciding the type of brokerage you work with depends on several factors, such as the amount of training you’re looking for, the flexibility you seek and the type of management you prefer to work with.
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An important factor to consider amongst all this is the income you’ll be earning during your real estate career. Unlike 9-5 jobs, your income relies heavily on the commissions earned through transactions.
Each brokerage offers a different commission structure, which has its risk levels and reward potential. It is ideal to weigh each to figure out which works best for you.
Types of Commission Splits
There are three types of commission splits offered by brokerages in the UAE:
- Traditional Split Plans
- High Split Plans
- Hybrid Plans
How Do I Choose the Right Agency?
Your first employer is the launchpad of your real estate career. This decision can influence the path you take, making it an extremely crucial step to take.
Most real estate agencies seek sales professionals while hiring agents, but differ vastly in their structure, operations and philosophy.
Your goal is to find an agency whose values align with yours. You can do this by:
- Talking to other agents working for the agency, to get an in-depth look at the work-culture
- Scouting the area where the agency is located from afar, to check if the location, the distance from your house and parking is convenient for you.
Some other factors to consider before taking the leap include:
- Market share, or the number of listings offered per agent
- Reputation and customer perception
- Office culture and set-up
- Lead distribution, whether it is received via your team leader or through induvidual efforts
- Training and resources offered by the agency.
Understanding your options and making a decision that matches your goals is a guaranteed way to success in your real estate career in the UAE.
Once you make the choice and join the firm of your choice, ensure your learning never stops, to stay ahead of the fierce competition that lies ahead. You can enhance your skills by joining us for our interactive workshops at Bayut Academy, where we host exclusive sessions for real estate professionals in the country. You can also explore our treasury of resources for realtors in our Content Corner on the Agent Portal.