UAE Property: 'Does $525m Property Finder deal reduce brokers to mere order takers?'

Tecom is among the developers that plan to invest in developing Grade A office buildings to capitalise on rising demand. Photo: Tecom

Question: Permira and Blackstone have just invested $525 million into the real estate portal Property Finder. Does that mean listing portals will control the market and reduce agents to order takers? I am concerned about this, but should I be worried as a secondary market broker? SM, Dubai

Answer: The short answer would be not to worry, but do adapt. The strategic investment into Property Finder is definitely big news, as it will turbocharge property tech in the region, improve data quality and accelerate product features that make online lead generation more powerful. That changes the landscape somewhat, but it doesn’t make skilled brokers irrelevant. It will make some parts of the job easier and other parts harder for those who don’t evolve.

Brokers should expect more sophisticated lead tools and paid features. Expect improved search, better buyer profiling, premium placement and new paid services for agents – likely subscription or pay-per-lead models. Agents who rely purely on volume without converting will find margins squeezed.

My Own Home'We renovated our Dubai penthouse and now its valued at Dh17m'

Read More

They should also expect better market data and pricing transparency, which is a double-edged sword because buyers and sellers will be better informed, shortening negotiation cycles and will also reduce opportunistic overpricing. It is good for conversion, but bad for inflated asking prices.

Private equity drives scale and product integration. Expect deeper customer relationship management integrations, partnerships with mortgage providers and, perhaps, white-label tools. This will favour agents who use tech to run efficient pipelines.

What should brokers do? Own their conversion funnels. If portals deliver leads, it’s their phone skills, follow-up process and trust that convert them. Portals are tools – not closers, that's the job of brokers.

Buy into the tools, don’t fight them. Take advantage of premium listing products, analytics and sponsored feeds where it makes sense.

Remember that high-value secondary deals still need human judgment and interaction, property condition, negotiation, legal navigation, inspection and trust.

Control your brand and database. Portals are public but your database is proprietary. Capture contact details, transaction history and preferences. That data is your most valuable asset.

Assess the risk. There are analysts warning of a potential market slowdown in late 2025-2026 given supply dynamics. If you subscribe to this, don’t over-leverage stock or advise clients to speculate without cash buffers. Use portal data to spot softening price signals early.

You should be worried only if you do nothing. Treat this portal investment as a wake-up call to sharpen your conversion, own your pipeline and be the agent who turns a click into a signed contract.

Watch: Dubai new star rating rental system

Dubai's new rental index is based on star ratings for buildings

01:23

Q: Developers are launching a string of Grade A offices – Damac District has a commercial tower and Rove/Irth are launching HQ by Rove, among others. Should I shift capital into new office launches, or am I better sticking to residential? What are the practical yield and risk considerations today? CN, Ras Al Khaimah

A: You’re on to one of the biggest trends in Dubai right now. Developers that once focused predominantly on residential projects are adding Grade A commercial stock to their pipelines, with mixed-use towers in community master plans and hospitality-branded offices in Business Bay as examples.

That indicates rising confidence in office demand, but it also demands a careful approach.

Dubai has seen an influx of family offices, asset managers and global firms setting up regional bases in DIFC and other hubs. The number of registered companies is rising and that corporate demand is part of the pull for new office products.

Branded, hospitality-led office concepts such as HQ by Rove aim to capture hybrid working teams that want hotel-style services and plug-and-play workspaces – an attractive product for SMEs and companies that value and offer flexibility.

You should do your due diligence and remember: pre-lease levels and anchor tenants are the most important metric. A high pre-lease percentage de-risks delivery. If a developer is selling off plan with little pre-lease, treat it as speculative.

Developer track record in commercial products is also important as residential expertise doesn’t translate automatically to quality office management.

Location and tenant catchment is also vital. Business Bay, JLT, Sheikh Zayed Road and DIFC have proven demand; peripheral office clusters need clear demand generators.

Lease structure and expected yield considerations should also be analysed as office leases are longer terms, covenant strength matters and operating expenses can be material. Compare expected gross yields against comparable residential yields and stress test a few vacancy scenarios.

Check projected completions versus estimated net take-up in the submarket.

I would suggest these steps based on your own risk adversity. If you are conservative, I'd wait for completion and evidence of leasing activity before buying. That avoids the tenant-risk and pre-lease gamble.

If you are risk averse, and you buy off-plan, insist on strong developer guarantees, a favourable payment plan and clear exit options such as right to sell in secondary market or developer buyback.

If you are seeking yield, I would consider smaller, hospitality-branded office units, especially if you want short management cycles.

In conclusion, offices can diversify a portfolio beyond residential and the market tailwinds are real. But nothing is a guarantee. You ought to be selective on developer, location, pre-lease covenants and realistic lease assumptions.

The opinions expressed do not constitute legal advice and are provided for information only. Please send any questions to [e-mail]