Q: Permira and Blackstone have invested $525 million into Property Finder. Does this mean property portals will dominate the market and reduce brokers to order takers? As a secondary market broker, should I be worried? – SM, Dubai
A: The short answer: don’t panic, but do adapt.
This investment is a major step forward for the region’s proptech sector, bringing better data, more advanced tools, and faster innovation. It will change the game, but it doesn’t make skilled brokers obsolete — it simply raises the bar.
Here’s what to expect:
- Smarter Lead Generation: Portals will roll out more advanced search tools, better buyer profiling, premium ad placements, and likely pay-per-lead or subscription models. Brokers who fail to convert efficiently will feel the squeeze.
- Greater Market Transparency: Expect better pricing data and shorter negotiation cycles. This will help serious buyers and sellers but may limit inflated asking prices.
- Tech Integration: Look for deeper CRM integrations, mortgage partnerships, and white-label tools — all of which will favor brokers who run efficient, tech-driven pipelines.
What brokers should do:
- Own your conversion process. Portals deliver leads, but you turn them into deals. Build strong follow-up systems and sharpen your phone and closing skills.
- Leverage premium tools. Invest in sponsored listings, analytics, and targeted marketing where it makes sense.
- Build your own database. Capture contact details and deal history — your client list is your most valuable asset.
- Stay alert to market shifts. Analysts warn of potential softening in 2025–2026. Use portal data to spot early signs and avoid over-leveraging inventory.
You only need to worry if you stand still. Treat this investment as a signal to refine your strategy and become the broker who converts clicks into signed contracts.
Q: Developers are launching Grade A office projects — like Damac District’s new tower and HQ by Rove. Should I consider switching capital from residential to commercial investments? – CN, Ras Al Khaimah
A: You’re looking at one of Dubai’s hottest trends. Developers that once focused mainly on residential are now adding premium commercial towers to meet rising demand from family offices, asset managers, and global firms setting up in DIFC and other hubs.
Opportunities & Risks:
- Opportunities: Hospitality-branded offices and mixed-use developments are attracting hybrid teams and SMEs that want flexibility and premium services.
- Risks: Pre-lease levels and anchor tenants are crucial. If there’s little pre-leasing, you’re speculating. Developer track record in office projects also matters.
Things to Evaluate:
- Location and demand generators (Business Bay, DIFC, JLT are safer bets).
- Pre-lease commitments (high percentages lower risk).
- Lease structure, operating expenses, and tenant quality.
- Gross yield projections compared to residential benchmarks.
- Supply pipeline vs. estimated absorption rates.
Strategy:
- If conservative, wait for project completion and leasing evidence before committing.
- If buying off-plan, insist on guarantees, flexible payment plans, and exit options.
- For yield seekers, smaller hospitality-branded office units may be attractive for faster lease cycles.
Bottom line: Commercial offices can diversify your portfolio, but careful selection of developer, location, and lease terms is key.
