Dubai as safe haven for property investments

Property InvestmentsJames Perry, Managing Director, haus & haus

Dubai is seen by many investors as an area that provides a safe haven for investments.

James Perry, Managing Director of haus & haus, explains why.
Different market fundamentals
There are a number of fundamentals that most investors would look for when buying. Quality of location, speculative yields, choice of developer and quality of construction would be prominent concerns.
Those with multiple properties would wish to spread the risk amongst a range of developments and stable investments.
The relative ease of transactions and entry/exit principles are other key factors for those looking to invest in such a market place.
There is a lot more confidence in Dubai as the property cycle is maturing and moving away from volatility that was seen in the past years.
Globally, investors are focused on long-term growth, stability and solid rental returns.
Lower yields are offset by minimum void periods of tenants, quality of occupants and the potential of capital gains.
London, for example, is acknowledged as a secure, stable market which sees year-on-year stable growth, much to the envy of other countries and cities around the world.

Maturing relations among key real estate players

As the property market in Dubai matures, so, too, have the relationships between developers, contractors and consultants.
This maturing relationship is fed directly to the investors and owners via quality products.
Many of the larger developers have learned from past projects and mistakes, and inputs from other stakeholders helped make improvements.
This is seen most readily by the quality of products, by old clients purchasing again in new projects of the same developer, and from client retention and feedback.
The directors of haus & haus have worked on many worldwide developments and have witnessed projects in Dubai that are of real quality and have met international standards.

Transparency of the real estate market

Transparency is one area where every market can improve, but Dubai has significantly sharpened it in the past 10 years by the mechanisms put in place by the government authorities such as RERA.
Ways in which we can further improve are down to individual and company ethics, stringent control of the professionals who are allowed to enter the market, harsher penalties for those who do not follow rules, and by playing close attention to customer feedback.
We always have customer care reviews, mystery shoppers, and follow-ups with owners to see if the services they received were to a high level and of a transparent nature.
From speaking to clients, it is clear that some real estate developers do not revive and secure their contacts to take their business to the next level.
Most companies use CRM systems but the importance of staff knowledge and training on this cannot be underestimated.
Employees need to be proficient in using these systems so that companies can maximize their data-base of clients.
A buyer I spoke to recently had enquired directly with a developer to purchase a property four months back and was surprised when I told him that there is now a showhouse erected to which we could visit.
Not only had the developer not kept the client abreast of advancements in the project, but they had also lost him due to bad practices.
During turbulent times, everybody has to keep clients updated or risk potentially losing them.
Poor organization and lack of communication will almost certainly manifest in lost revenues.

Why property investors pick Dubai
• The mechanisms and stringent controls put in place by the government authorities have significantly sharpened the emirate’s transparency in the past 10 years
• Developers, contractors and consultants have strengthened their relationships, resulting in quality developments that draw more investors
• Global and local investors have more confidence in the emirate as its property cycle is maturing and moving away from the volatility seen in the past years

Source: Cleofi-Krista Capili, Special to Freehold
The writer is a freelancer


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