Have you ever wondered why real estate commissions never seem to change? In the UAE, agent commissions are typically 2 percent of a property’s price and up to 5 percent of rental value. In many other countries, it’s the same story — commissions are generally fixed, without regard to the quality of the property, its size and value, or even the quality of service.

Is this a fair deal? Opinions may differ, but over the years many experts have often cited this practice as one of the enduring inefficiencies and limitations of the developer–agent–buyer chain. Traditionally, in this model, buyers make decisions largely based on what is presented to them by intermediaries, while developers rely on the same agents to gather market feedback. One party, the intermediary, acts as gatekeepers of the flow of information, and consequently holds more insights than both developers and buyers.

Analysts say this set-up has led to information frictions in the market, a term they use to describe information that is imperfect, costly, or asymmetric. It’s a system prone to distortions, delays, and inefficiencies that ultimately result in mispricing, misaligned offerings, slower feedback, and missed market insights.

But for years things have remained largely unchanged. Amid one of the real estate market’s most dynamic phases, we would be tempted to think otherwise — that the conditions for change have never been stronger. In Dubai, the property market reached a value of AED 761 billion in 2024, shattering records according to the Dubai Land Department. The entire city is buzzing with new projects, including a much-awaited third metro train line. But as they say, developers build quickly yet adapt slowly.

So while we’re seeing skylines transform at breathtaking speed, many business practices, e.g. how properties are marketed, sold, and priced, have largely remained the same. Pricing structures and commission models have been left untouched. Countless studies have exhaustively discussed why this is so, e.g. the real estate and construction industries being historically change-averse. The usual excuses: they’re asset-heavy, heavily regulated, and have a strong reliance on long-standing relationships and legacy processes.

But change is becoming a competitive necessity. While maintaining the status quo preserves certain best practices, the conventional developer–agent–buyer set-up has also entrenched inefficiencies that no longer serve today’s developers or buyers. Breaking the status quo means rethinking how knowledge moves through the property value chain. But who will take the first step?

Direct-to-owner model

Disintermediation, the process of removing middlemen between developers and buyers, is an alternative approach that overcomes many of these inefficiencies. From the outset, this model is seen to greatly benefit real estate consumers as it completely removes the need for agent commissions. But developers and many individual home sellers also stand to gain from engaging directly with homebuyers as it gives them complete control over the sales process and market data – two critical factors for maintaining a competitive edge in a rapidly evolving market.

This is not a totally new concept. Disintermediation was coined in the 1960s when consumers started to invest directly in securities such as stocks, bonds, hedge funds, and mutual funds, instead of depositing their money in banks. Technology was key to unlocking this shift, not just in finance but in other industries such as real estate.

In the age of the internet and artificial intelligence, disintermediation has taken on a far more practical and transformative role, particularly in real estate. The modern buyer’s journey increasingly begins, and many times ends, online, with AI influencing every stage. In fact, the UAE has now achieved 100% internet penetration, according to a report by the Telecommunications and Digital Government Regulatory Authority (TDRA), effectively making online platforms a default starting point for most property seekers.

Meanwhile, there has been a big shift in the homebuyer profile towards a younger, more tech-savvy generation. The average age of homebuyers has significantly dropped from 53-54 in 2017 to 42-44 in 2025. Moreover, 36-45-year-olds now account for up to 40% of off-plan sales and 44% for ready and re-sale transactions. An even younger cohort, the 21-25 age group, is becoming increasingly active in the property market, buying 38.6% and 33.3% more off-plan and ready property, respectively, over the previous year.

This shows a clear shift in who is buying as well as in the potential of data-driven and algorithm-assisted decision-making as younger real estate consumers increasingly turn to online platforms to buy and gather insights. Yet, in the traditional developer–agent–buyer chain, that data, enriched with AI insights on buyer behavior and preferences, is filtered through layers of intermediation before reaching the developer.

Giving back control to those who create value

Direct-to-owner platforms are now changing that dynamic entirely. Instead of relying on agents to interpret the market, developers and sellers can engage directly with their customers, gaining complete visibility and control over their data and customer interactions. They see first-hand how buyers respond to pricing, visuals, and messaging, and can adjust their strategies accordingly in real time. In our experience at Gllit, a direct-to-owner property listing platform, the efficiencies gained from direct customer engagement are significant — giving developers and sellers critical customer insights that allow them to respond faster to trends and design more inclusive, market-aligned projects and strategies.

Disintermediation is ultimately about restoring balance in the flow of information and of the real estate transaction process. Developers gain agility and data ownership, while buyers benefit from transparency and fairer pricing. In the age of the internet and AI, platforms that allow direct engagement with buyers offer a practical and more efficient alternative to the conventional model that puts control, data, and insight back into the hands of those who create real value.

In a strategic move that reflects a shared commitment to supporting homeownership in the UAE, Sobha Realty has announced a new partnership with Abu Dhabi Islamic Bank (ADIB), to offer innovative home finance solutions for off-plan property buyers.

Under this collaboration, UAE residents will be able to access Sharia-compliant home financing facilities upon just 35% construction completion of Sobha off-plan properties. This initiative is designed to make homeownership more accessible by reducing the financial entry barrier for buyers.

For Sobha Realty, known for its ‘Backward Integration’ model and meticulous delivery standards, this financing framework complements its commitment to customer trust. The offering is not just a financial product; it’s a continuation of Sobha’s belief that true luxury lies in assurance, transparency, and attention to every detail, including how a home is financed.

Speaking on the collaboration, Ravi Menon, Chairman of Sobha Group, said:; “At Sobha, we’ve never viewed a home as a transaction. It’s a legacy –built brick by brick, on a foundation of trust. This partnership with ADIB is an extension of that philosophy, offering our off-plan buyers a financing path that’s as thoughtfully constructed as our homes.”

Francis Alfred, Managing Director of Sobha Realty, added: “Today’s buyers seek clarity, credibility, and convenience. Our collaboration with ADIB brings exactly that to the off-plan journey. It’s a progressive step that aligns financial accessibility with the certainty Sobha Realty is known for, ensuring our customers can plan their future with both confidence and ease.”

Amit Malhotra, Global Head of Retail Banking, added;: “We are pleased to collaborate with Sobha Realty, in this initiative. At ADIB, we are consistently looking for innovative ways to serve our customers and align our financial solutions with their evolving lifestyle needs.

This initiative ensures a more accessible and structured route to homeownership, built on the principles of transparency and Sharia compliance.”

Sobha Realty’‘s promise has always been deeper than design or delivery. It’s about reimagining what a home can mean. As the UAE’s property market matures and diversifies, this partnership ensures that buyers are not only investing in real estate but entering into a relationship grounded in expertise, vision, and peace of mind.

Whether it’s the signature finishes, the rigorous quality checks, or now, financing designed with the same degree of intent, Sobha Realty continues to redefine what excellence in real estate truly looks like.

Ras Al Khaimah’s real estate market is set to carry its 2025 momentum into 2026, with steady growth expected across both off-plan and ready homes as buyer demand remains strong and available supply – particularly along the coast – becomes increasingly limited, according to Metropolitan Premium Properties.

Off-plan sales are expected to rise by 15–20% in 2026 compared with 2025, supported by RAK’s growing appeal as a lifestyle and investment destination and continued investment in infrastructure, tourism and hospitality. At the same time, the market is showing clear signs of maturing, with buyers placing greater emphasis on quality, location and long-term value.

“Ras Al Khaimah is moving into a more balanced and sustainable phase of growth,” said Maxim Novikov, Head of the RAK branch at Metropolitan Premium Properties. “While off-plan demand remains healthy, especially for branded and lifestyle-led developments, buyers in 2026 are becoming more selective. Limited supply in prime areas is supporting prices across both new and ready properties and we’re seeing increasing competition for high-quality assets in established communities.”

While Al Marjan Island dominated off-plan activity in 2024 and 2025, much of its inventory is now sold out. As a result, demand in 2026 is expected to shift toward new and emerging coastal zones, including the Marjan Beach area, following announcements of landmark hospitality projects such as the Hard Rock Hotel. Raha Island within Mina is also emerging as a key growth area, supported by the planned launch of Armani-branded villas alongside the Four Seasons Hotel and Residences, ENTA as well as a number of boutique waterfront projects.

As new launches become more selective, the knock-on effect is being felt in the secondary market, where demand for ready and near-completion homes is rising steadily. In 2025, prices for completed properties in communities such as Al Marjan Island, Mina and Al Hamra Villageincreased at the same pace as, or faster than, off-plan units, particularly for villas, townhouses and waterfront residences. This trend is expected to continue in 2026, with average prices forecast to rise by at least 20%, driven by strong end-user demand and a constrained supply of premium stock.

Developers have continued to adjust pricing strategies to sustain demand. While off-plan prices recorded steady increases in 2025, sales were supported by flexible payment plans, including lower upfront payments, extended instalment schedules and post-handover plans. This approach is expected to remain a key feature in 2026, particularly as prices trend higher and international buyers prioritise entry affordability over headline discounts. GCC buyers, by contrast, are more lifestyle-driven, with growing interest in beachfront homes for personal use and holiday living.

With fewer off-plan options available in prime coastal locations, resale market transactions are expected to increase, particularly for waterfront apartments. Buyers seeking immediate occupancy, rental income or exposure to established resort communities are increasingly turning to the secondary market as an alternative to new launches.

Rental fundamentals are also strengthening. Yields currently averaging around 7–8%, especially for villas, townhouses and waterfront homes, are expected to edge higher in 2026 as demand for ready properties outpaces supply. This is being reinforced by RAK’s expanding tourism sector and the rapid growth of short-term rentals.

With annual visitor numbers projected to approach five million, an estimated 60–70% of residential units on Al Marjan Island and 30–40% in Mina are expected to be used for short-term rental purposes. This shift is supporting stronger pricing, improved liquidity and sustained investor interest in both newly delivered and resale properties.

“The combination of tourism growth, globally recognised hospitality brands and limited new beachfront supply is reshaping the market,” Novikov added. “In 2026, we expect both off-plan and secondary segments to perform well, but the real differentiators will be location, branding and long-term fundamentals rather than sheer volume of new launches.”