Founder of Feldman Real Estate about features of the real estate market in Dubai

“The richest and smartest people in the world buy property in the UAE. Founder of Feldman Real Estate about features of the real estate market in Dubai”

Today, a considerable flow of people is moving to Dubai. The flow is so dynamic and active that there is even a shortage of finished housing on the rental market. Meanwhile, for those interested in investing in real estate, investments in the UAE may be very profitable as the UAE is a tax-free country with a stable and secure economy.

Ester Victoria Feldman, the founder of Feldman Real Estate, spoke about the features of the real estate market in Dubai.

Victoria, how long have you been working in real estate? How did you get the idea to start your own business?

Initially, I began investing in Dubai and saw it was profitable. Then I opened my own real estate agency. I have been working in this business for over five years. Naturally, I also underwent special training at the state level in the UAE, passed the exams and became a licensed broker.

Feldman Real Estate agency multinational team constantly undergoes various trainings and improves its level of professionalism. We have developed high work standards. It is essential for us to be customer-oriented, to fulfil our obligations based on the wishes of our customers. Our clients can be confident in the honesty and professionalism of our agents and in their knowledge of the procedures and laws adopted in Dubai and the UAE.

So how does your agency work? How does it differ from other competitors?

I understand that the client chooses an agent he enjoys working with because sometimes the selection process can take years. As for a professional broker, the most important thing for me is honesty with the client, confidence in my knowledge of the market and a positive attitude. I will never recommend an object against my intuition because the client’s trust is essential. In our work, when determining the price of real estate, we are guided by the most objective indicators — reports on transactions of the Dubai Land Department, which indicate the number of transactions for similar objects.

80% of our transactions are concluded remotely. The process is well-established, and everything is official and transparent: we have been on the market for a long time and have thousands of satisfied customers. We work directly with developers — we advise and help with all the documents so that the client only has to pick up the keys. Therefore, we often make deals without a personal inspection of the object.

We do many things on a turnkey basis, such as registration of the purchase, sale of housing and registration of property. We have trusted partners in the residency process who provide these services, including to our clients. Buyers of real estate in the UAE can obtain a residence permit that provides specific opportunities. For example, you can get health insurance and open a bank account.

When we talk about real estate, it is often not just about buying a home but rather about a profitable investment in the future. What are the advantages of Dubai in this regard? What opportunities does your agency offer for those who use real estate as an investment?

It is enough to look at the ROI indicators to answer this question. Depending on the object and location, the coefficient can be 8-9% in Dubai and in Abu Dhabi — about 8%. Buying property in the UAE will provide a quick return on investment. For example, in the CIS, the return on investment in housing is more than 20 years. In Dubai, this will take 8–13 years. For real estate, it is very fast.

Purchases here are very diverse: it is both residential and commercial real estate. There is such a wide range of projects in Dubai that it is challenging to designate a certain amount. It is not necessary to be a rich person to make money in the UAE. It is enough to invest 20-30% of the cost at the initial stage of construction, gradually pay the rest of the amount, and resell the apartment when it is put into operation, and the net profit will be obvious. This is truly a worthwhile investment. The cost of such an apartment is from 300-400 thousand dollars.

Taxes also influence the decision to buy square meters in the UAE. In the US and UK, they are very high. And in the Emirates, there is zero business tax. People bring their entire companies here. Moreover, my agency works in freehold zones — these are areas of Dubai where foreigners can buy real estate with the right of full private ownership and the ability to pass it on from generation to generation. This is not a lease for 100 years but an acquisition for life.

What forecasts for the real estate market development can you make for the next year? Why is it worth investing your money in Dubai?

Many people first begin to study proposals in other countries. And in the end, choose Dubai. Where else to invest, if not in real estate in the UAE? Turkey has an insufficiently stable economy and high inflation; Spain needs better laws for foreign investors. We work in Dubai and see that the richest and brightest people in the world buy property in the UAE.

Regarding investments, the minimum entry threshold remained at $250,000. Because a real investment can be considered real estate in tourist locations or the city centre, this kind of property is in demand, which means it will bring more income from rent or resale.

The situation in the world also influences. Only a square meter remains a reliable option when the stock market shows instability. I always say, “It doesn’t matter how much we earn. What matters is how much we save”. We don’t know what’s around the corner or how much time we have. People want something left after them, so they invest in real estate.

Another critical factor is the increase in demand for rental housing. Following this, the cost of rent increased by about 30%. As a result, it is tough to rent a suitable apartment or house in Dubai now — there are sorely lacking offers. Moreover, if you can still choose an apartment, it is almost impossible to find a villa — everything is busy.

Finally, tell us about your favourite place in Dubai. Which area can you recommend visiting?

Definitely Madinat Jumeirah. I really like the atmosphere of this place. This complex is designed as an old Arab city located on the water. In the middle, there are many small shops, restaurants and bars. I recommend visiting: Wild Wadi Waterpark at Al Arab Hotel, having dinner on boats sailing along the Dubai Creek and dancing fountains in Dubai Mall and Burj Khalifa.