How do real estate brokers cope with market downturns?
Poll: Abdullah Alsaleh: Real estate brokers face significant challenges during periods of recession that dominate the market from time to time, depending on the changes in the sector, in these circumstances distinguished brokers demonstrate their abilities and skills in achieving successful deals, others are dedicated to planning beyond this stage.
Amlak real estate newspaper conducted a survey on How do brokers face the market downturn?
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Abdullah Al Ayyash: Recession and correction period may exceed six months
Abdullah Al Ayash, General Manager of Sima Home Real Estate, explained that the recession in the real estate market is an opportunity to collect comprehensive data on offers and owners until the period of stability and balance, after which intensive work is done on the offers that have been collected, and the period of sales activity and implementation is sometimes as short as ten days and then the recession returns after that.
Abdullah Al Ayash - General Manager of Sima Home Real Estate Company
Al Ayash pointed out that some of the recession and correction period may exceed two to six months, so we collect offers until the period of activity, then implementation begins to accelerate, stressing that the individual real estate broker who does not cooperate with real estate offices and establishments may not be able to make his way in the real estate market, in addition to the delay in gaining experience due to avoid dealing with a large segment of the real estate market (real estate establishments).
Al Ayash pointed out that the individual real estate broker who does not cooperate with real estate offices and establishments may not be able to make his way in the real estate market.
He pointed out that not studying the offer sufficiently before presenting it to customers affects the reputation of the individual broker and makes some customers avoid dealing with him in the future, and called on bloggers not to rush to declare and analyze after the issuance of any decision that may lead them to the issue of error and insufficient perception, which affects them negatively in relation to the real estate sector, which needs deliberation, foresight, qualification and license in providing opinion; therefore, many writers in this regard find statements followed by apologies and clarification afterwards.
And he called on bloggers not to rush to declare and analyze after the issuance of any decision that may lead them to the issue of error and short-sightedness.
<In conclusion, Al Ayyash told Amlak: «There is what is called the initial shock after the issuance of an announcement or news, which comprehensively affects the implementation in all offers, and after the details of the decisions about the orders and directives of the Crown Prince, the picture becomes clearer, then stability and balance occurs and the trading movement begins to convince the owner and the buyer in balance, and this period may take a long time, up to six months.»
Al Ayyash said.
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Hisham Al-Aifan: Professional broker focuses on diversification
Mr. Hisham Al-Aifan, General Manager of Hisham Al-Aifan Real Estate Office, explained that the economic recession has a noticeable impact on the work of real estate brokers, noting that it often leads to a decline in income and a slowdown in trading, which may push a large number of brokers out of the market as they are unable to withstand long periods of inactivity. In the face of a decline in transactions, many brokers have been forced to exit the market because they are unable to withstand long periods of inactivity.
<In the face of declining trades, Al-Aifan noted that professional brokers have the ability to focus on alternative areas to diversify their sources of income. He identified some of these areas such as: "real estate leasing and property management, in addition to the importance of following the market calmly and professionally without stress."
<As for the secrets of success in light of the challenges, Al-Aifan emphasized the importance of continuity in appearing and communicating effectively with the market, and maintaining a continuous presence without the need to rush to complete deals. He emphasized that the recession represents a valuable opportunity to rebalance and expand sources of income.
<In a message to new brokers, Al Aifan said: «The recession is not the end of the road, but a stage that requires patience and flexibility.» He warned that «those who do not have these two qualities may leave the market early,» and emphasized «the importance of diversifying activities and continuing to be actively present until the movement returns to normal.»
Al-Aifan said: “The recession is not the end of the road, but a phase that requires patience and flexibility.
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M. Salem Matrafi: Premium broker thrives in recessions
M. Salem Al Matrafi
«Real estate brokers are an integral part of the real estate sector and are directly affected by the supply and demand movement in the market. However, he explained that »distinguished brokers show their abilities and achieve successful deals even under difficult conditions that affect purchasing power,« adding that they have an increased ambition to execute more deals and achieve high returns when the real estate trading movement recovers.» Salem Al Matrafi, interested in real estate affairs, stressed that the real estate broker is an integral part of the real estate sector and is directly affected by the movement of supply and demand in the market.
<Al-Matrafi pointed out that one of the most important characteristics of a successful real estate broker is his «superior ability to adapt to different market conditions and respond quickly to new developments and regulations,» and emphasized his commitment to the best methods to achieve successful deals and face the scarcity of opportunities. He pointed out that «the recession may be limited to one activity without another or one region without another, and here the broker's acumen stands out in moving towards areas that are less affected.» On the other hand, Al Matrafi believes that a smart broker can use the real estate recession period as a valuable opportunity to prepare, prioritize and acquire the necessary knowledge in preparation for the return of activity.
<Regarding alternative sources of income, Al Matrafi explained from his perspective that a successful broker, with God's blessing, will not need to look for alternative sources of income if he is able to place himself in the right place in the market and believes in his ability to develop and specialize. «Every real estate path a broker takes represents a promising and limitless opportunity for growth and rewarding financial returns,» he added, concluding that focusing on continuous growth eliminates the automatic need to look for alternative incomes when purchasing traffic is weak.«
The secrets to success in the real estate market.
<As for the secrets of success in the face of challenges, Al Matrafi believes that patience and perseverance are the seeds that reap the fruits of a successful broker every time. He emphasized that there is no shortcut to success, but rather continuous steps that lead to platforms of excellence.
<»If a broker, investor or even a developer engages in an accurate reading and understanding of the real estate market and actively participates in real estate forums and partnerships, opportunities will become clear to him and he can clearly distinguish them.« He warned against relying on contradictory news and rumors circulating to those outside the market.
<In his conversation with Amlak, Al Matrafi offered valuable advice to new brokers to overcome recessionary periods smartly, stressing the importance of thoughtful graduation with attention to specialization. He concluded: »The amount of diligence and learning is the speed of development, and going to the field remains the basic rule for the success of any real estate."
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Asmaa Olayan: A prudent broker does not wait for the market to recover but adapts to the variables
Amlak real estate newspaper conducted a survey on How do brokers face the market downturn?
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Abdullah Al Ayyash: Recession and correction period may exceed six months
Asmaa Olayan, CEO of Asmaa Olayan Holding, stressed that periods of recession in the real estate market pose a great challenge to the work of real estate brokers, explaining that these periods are characterized by a noticeable slowdown in real estate trading movement, which leads to a decrease in the broker's income, which depends mainly on commissions.
Asmaa Olayan, CEO of Asmaa Olayan Holding Company. During these periods, it becomes more difficult to complete deals as a result of low demand and hesitation of both buyers and sellers, and the broker faces a more competitive and less stable market environment, which calls for a comprehensive re-evaluation of work methods and the adoption of a smarter and more effective approach.
Olayan stressed that these periods are characterized by a noticeable slowdown in real estate trading, which leads to a decrease in the broker's income, which is mainly dependent on commissions. <Olayan emphasized the importance of adopting immediate adaptive strategies, stressing that a professional broker does not wait for the market to recover, but adapts immediately. She explained that this adaptation includes reprioritizing, focusing on serious clients, developing marketing tools, and using new channels such as video and personalized messaging. In addition, she advocated adopting a consultative approach that positions the broker as a trusted expert and not just a salesman, which helps them stay active and effective despite the recession.
When it comes to diversification, the key is to diversify. <In terms of diversifying revenue streams, Olayan said: »When commissions slow down, smart brokers look for alternative sources of income,« she said: Property management, real estate consulting, appraisal services, and even professional training. »Diversifying services not only compensates for the financial decline, but also builds a broader and more established professional niche.“
She also pointed to the possibility of creating specialized content or managing outreach accounts. <On the secrets of success in times of recession and overcoming challenges, Olayan explained that ”success is not related to the quantity of deals but to the quality of presence, impact and continuity.« She emphasized the importance of patience and building trust with clients as key factors that distinguish a professional broker. Having a strong network and the ability to provide realistic analysis positions the broker as an advisor, not just an enforcer.»
This is where the difference lies.«
Olayan explained that ”success is not the quantity of deals, but the quality of presence and influence. Olayan explained that brokers view the recession differently, as some see it as a threat, while others see it as an opportunity for development and repositioning, noting that “the recession period allows a broker valuable time to improve his tools, develop his knowledge, or learn new marketing techniques.»
Olayan noted that this period of recession provides a valuable time to improve his tools, develop his knowledge, or learn new marketing techniques. She also noted that these periods may present rare investment opportunities at attractive prices, emphasizing that «whoever manages this period intelligently, emerges stronger and more ready for the next growth.»
Finishing her remarks, she offered a few words of encouragement. <«The recession is a real test for new entrants to the market. The most important tips are: Do not rush to make profits, focus first on building skills and gaining experience from industry veterans, work to build a strong network, maintain a professional and effective digital presence, and diversify services to prepare for any market shift.»
She emphasized that "intelligence and insight are more important than experience alone in overcoming market challenges."
Alayan concluded her statement by saying: "The recession is a real test for new entrants to the market.
