Over half Dubai real estate agents made no sales in last month

Many real estate agents in Dubai have not sold a single property in the last month as the property downturn continues, according to a survey.

A 'self perpetuating panic' has set in and lending restrictions and lack of regulation has severely affected demand, according to a network for agents in the city.

Paul Allen of TheEstateAgentsDubai.com website said the survey found that property agents feel the market has seized up.

Over, 53%, half had completed no sales at all in the last month and 24% had just one sale. They blame a tightening in lending due to the global credit crunch that has left customers unable to secure a loan to buy a property. And local lenders have slashed home financing from 90% to as little as 50%.

Agents also blamed a lack of regulation by Dubai's recently formed Real Estate Regulatory Agency and unclear information regarding new laws and procedures from Dubai's Land Department, according to the survey.

Over half of the estate agents, 67%, said they were either uncertain or pessimistic about the property market in the next three months but asked about the outlook in six months time and 59% said there were optimistic.

A significant 13% said they did not think that the property market in Dubai will pick up for at least a year.

However, most feel their jobs are safe but a quarter is concerned that they could lose their positions. But the gloom is not prompting a mass exodus with only 18% indicating they are considering leaving the industry.

But the situation could deteriorate even further with December traditionally a slower time of year. One agent told Property Wire: 'I know of a very successful brokerage and development company that is planning to cut staff by 40%. The reason is basic survival. December is expected to be a very negative month for the real estate industry as all the markets will remain closed for 20 days due to holidays and weekends.'