Mounir Redjdal, founder of DRN Real Estate, a French-speaking real estate agency based in Dubai, shares his views on the opportunities Dubai offers to these buyers.
Post-pandemic, we are seeing an increase in people coming to settle and not invest in Dubai.
Dubai being the second most profitable city in the world, we naturally find investors among the buyers, but also people looking for security, a change of living environment, a new start
Mounir Redjdal, founder of DRN Real Estate
Who makes up the buying community in Dubai today?
Today, Dubai is a successful melting pot of over 180 nationalities.
Expatriates from all over the world, whether from England, the United States, Singapore or the Philippines, all converge on Dubai, attracted by the security they find there on a daily basis.
But also by the professional opportunities offered by the emirate, a true welcome land for entrepreneurs, executives, and employees from various sectors such as the media, health, architecture and engineering.
Convinced by the exceptional quality of life and the advantages offered by Dubai, a growing number of expatriates are now opting to purchase real estate in Dubai, as Mounir observes: “
Post pandemic, we are seeing an increase in people coming to settle down. and not invest in Dubai.
We are on a ratio of 40% for expatriates, and 60% for investors today
. Among these buyers, there are investors looking for returns, Dubai being the second most profitable city in the world according to Mounir , investors specializing in purchase-resale operations, as well as buyers looking for a change of living environment, a new start, and above all, a sure value. Dubai is positioning itself as a destination offering a politically and economically stable, with promising future prospects. An emirate resolutely turned towards the future.
Through the payment plan,
the promoter offers payment spread over several years.
With this method, it is no longer necessary to go through a bank and provide all the usual supporting documents.
Here, you pay an initial contribution of 20%, then you have maturities spanning 3 to 8 years at zero interest to complete the total payment of the property
Mounir Redjdal, founder of DRN Real Estate
Payment plans: an interesting option for real estate acquisition
Dubai has been able to establish attractive conditions for future buyers, particularly in terms of bank loans.
Currently, bank loan conditions remain advantageous, with the possibility, for example, for expatriates and foreigners, of obtaining a credit covering 50% of the cost of purchasing a property, the buyer having to advance the 50% remaining.
For residents, a credit of up to 80% of the financing is possible, subject to the presentation of certain supporting documents.
However, one option that is attracting more and more buyers today is payment plans.
By spreading payments over several years and eliminating the need for a traditional bank loan, this approach simplifies the acquisition of a property, the founder of DRN Real Estate tells us.
He explains: "
The developer facilitates the acquisition of a property via a payment plan spread over several years. With this method, it is no longer necessary to go through a bank. If you wish to purchase a property, you consult a real estate agency which advises you on the property and guides you in the procedure with the developer. You pay an initial contribution of 20%, then you have deadlines spread over 3 to 8 years to complete the total payment for the property.
" This system is certainly far from the 25-year credits that we know, but has the advantage of not requiring supporting documents such as pay slips, tax notices, or the need to have guarantors.
Also, and not least, this loan offers the advantage of being at zero interest.
How to find a real estate opportunity in Dubai?
The payment plan is attracting keen interest among investors, offering the possibility, through its spread, of generating amortization of rental income.
As investors do, on a property for example valued at 200,000 euros, providing a return between 6 and 7%, i.e. the average rate of return for real estate in Dubai.
For comparison, the average net yield on real estate in Paris is between 3 and 4%, although advantageous transactions can be made there.
How to spot real estate opportunities in Dubai?
“
It is essential to target strategic locations and developers in demand. Today, real estate in Dubai is characterized by launches, but above all by sales before the official launch
.”, advises Mounir.
For those who aspire to acquire a property in a key location such as the Burj Khalifa district, it is imperative to first express interest through an “expression of interest” in order to possibly have the chance to position themselves on a good thing, given the high demand.
Dubai is certainly stimulated by the construction of new buildings and the creation of new districts, in particular by the Dubai 2040 urban plan which plans to make 55% of its spaces green and to double its population, initially seeking to attract 150,000 people per year. year to achieve this.
But today, 200,000 people settle in Dubai every year.
The objective has been largely exceeded.
What prospects open up for the ever-increasing number of international residents in the Dubai of tomorrow?
Dubai stands out for a bold vision, driven by its leader, Sheikh Mohammed bin Rashid Al Maktoum.
Dubai's achievements in less than 50 years, such as the creation of the world's largest shopping mall, tallest tower, and cutting-edge technological infrastructure with complete security for its residents, are testament to the visionary leadership of its leader.
A success which is a source of motivation and inspiration for the entrepreneurs on site.
Although Dubai leads the way when it comes to safety, Mounir recognizes the importance of additional efforts to address pollution-related issues.
This is where Dubai 2040, a major ecological urban plan, comes in.
As the past has demonstrated, when the ruler of Dubai embarks on a project, the objective is clear: to be number one, never second, never third.
With this ecological initiative, it is clear that the manager is giving himself the means to achieve his ambitions.
“
What carries a country are skills,
” concludes Mounir.
In this regard, the vision carried by Dubai has been able to attract the best talents.
And this in every area.
We find the greatest surgeons in hospitals as well as renowned teachers in schools.
These skills have been crucial for optimal business development in Dubai.
In return, these companies offer particularly advantageous conditions to their employees.
The growth of DRN Real Estate has been fueled by this reservoir of international talent.
The agency, made up of around thirty employees, benefits from a diversity of skills in human resources, commercial management and marketing.
These experts are able to carry out transactions and communicate in several languages, including French.