Dubai major realtor shuts down due to 'worsening market'

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S&K Estate Agents, the leading estate agent and property management company in Dubai filed for bankruptcy after going out of business with the loss of dozens of jobs.

The company which traded as Smith & Ken, said in a statement, confirmed also that all 80 staff in both its Dubai and LA offices have lost their jobs.

The company’s shareholders issued a statement reported by news agencies saying that it was no other choice “but to file bankruptcy and hand over accounts and any remaining income to our liquidator. Simply put, the revenue being generated by the business drastically reduced over the first half of 2015, without enough income to cover operational costs.”

In addition, the statement said that its “last resort” to increase sales” was in vain, even after a heavy recruitment process during the recent months, “however, the fruits of this process did not transpire in time to save the organization.”

The company said that poor service levels provided by the brokerage led to a number of complaints from clients, which deterred repeat business opportunities and created a poor reputation for the company, which is the graveyard for any serviced-based company.”

UAE local media outlets said on Monday that Dubai police is investigating reported vandalism which took place in the company’s office in Dubai Media City after noticing its glass door has been smashed.

The company blamed its dramatic decision to “the market’s saturation” and the “bad competition from smaller competitors.

New supply in Dubai affected the market and the rents dropped 3 percent during the second quarter of the year, according to a report by Abu Dhabi Islamic Bank and MPM Properties.

In addition, on Monday, Dubai Land Department show 14 percent decline in the number of homes sold and a 15 percent fall in the total value of transactions.

Al Arabiya News with AFP/Reuters

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