“By connecting these clients to real estate agents, we are able to help the entire transaction close faster,” said Azzam Fakhoury, real estate manager at Huspy. “For our partners, whether mortgage or real estate, this means the home buying process is seamless and they can earn some of the best commissions in the business.”
The move makes sense for Huspy; Unlike the typical real estate listing portal, Huspy derives its revenue when a property is sold and the buyer needs a mortgage. This is where the portal offers funding options through partners. So for her, leaving free listings to real estate agents is part of the acceleration process.
Estate agents won’t care, as major property portals have increased advertising rates by 30-40%. It was last week that the Dubai Land Department said that each property offered for sale or rental can only be advertised by up to 3 brokers. And each of them will need a permit before listing it anywhere. This is shaking up years of how properties were marketed and sold in Dubai, with even 7-8 agents ‘associated’ with the process. (The Dubai Land Department has also made it mandatory to remove all listings as soon as this property is transacted.)
This decision – effective from October 1 – could remove much of the functionality of multi-listed property portals. The portals are thus trying to compensate for the drop in income by increasing advertising rates.
As well as raising new funds from investors, the portal has also been busy with consolidations, acquiring property consultants that fit into its mortgage-focused operations. Thanks to three acquisitions – all completed this year – the company claims the title of “UAE’s Largest Mortgage”. Platform’.
It also raised one of the largest Series A funding rounds in the MENA region, at $37 million, from investors including Sequoia Capital India, Founders Fund, Fifth Wall, Chimera Capital, Breyer Capital, VentureFriends , COTU, Venture Souq and BY Venture Partners.
Regarding free listings for brokers, “This move by Huspy’s ensures that every stakeholder in the UAE real estate ecosystem can benefit from our technology, at every stage of the home buying experience”, added Fakhoury.