Out of the box

Where are they from the equation of luxury real estate deals?

Ismail Al Hammadi

October 05 2021

At least 50 luxury housing units were sold in Dubai this year at a value of 10 million dollars (36.7 million dirhams) per transaction, all of which were for wealthy foreigners, according to recent studies of the luxury real estate market in the emirate, and they were carried out through brokers and foreign brokerage offices .

As I was looking at the report, an innocent question came to me: What about the Emirati brokers, where do you think they are in the equation of sales of luxury real estate deals in the market?

According to the Global Wealth Report 2021, there are more than 42,000 luxury real estate units in Dubai, and it is second only to London, which includes more than 86,000 luxury properties. If we examine the owners of this type of real estate in Dubai, we will find that 95% of them are foreigners The broker who completed the transaction is a foreigner.

Most of the buy trades that are executed in the market are, for the most part, achieved by foreign brokers and brokerage offices, and not local brokers, unfortunately.

Frankly, the least that should be said at this point is that the Emirati broker is completely hidden from the list of luxury real estate buyers that abound in the sector, and from the list of brokers executing huge deals for this type of real estate.

This, in turn, misses the opportunities for them to benefit from the commissions of these deals as intermediaries.. Many opportunities from this section are lost if we focus on them carefully.

There was no room before to discuss this matter and put it forward, perhaps due to the multiplicity of investment opportunities for Emirati youth in various fields, and the government’s facilities for them in several areas, but there is a long talk about the same matter as a matter of investing and benefiting from the returns of luxury real estate, which is undeniably leading The activity of the real estate sector since its existence, especially during the recent periods, and market figures confirm this.

Here we point out another point, which is that the quality, value and space of luxury real estate in Dubai and its investment returns are much higher than those in other global cities at the same purchase price, according to foreign market studies.

The absence of Emirati youth from luxury real estate deals from the market may be due to their lack of knowledge of their value and the importance of working on the marketing of luxury properties.

It may also be attributed to them underestimating the importance of luxury real estate in their annual record of achievements, and they may not realize that one real estate deal for a luxury property is enough for them for the whole year.

An invitation to Emirati brokers to enter the real estate world vigorously, and to redouble efforts to build a strong network of relationships at home and abroad, enabling them to get out of the focus on marketing regular real estate, and what social media platforms offer from dealers, as the investment opportunities in the market go beyond the concept of a studio or apartment With a room and a hall, the price of which is equivalent to 100,000 dollars (367,000 dirhams).

Opportunities available in the luxury real estate market in which one sale transaction is equivalent to selling half a building of medium and standard real estate.

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