"Development in Dubai has been growing for years according to the visions of the ruling sheikh. Apartments here are more affordable than in Bratislava. The only risk is choosing a real estate partner," says group CEO & co-founder IQPRO Investment Mirka Nieuwenhuis.
What is the current situation on the real estate market in Dubai?
The market of the United Arab Emirates still has enormous growth potential, high return on investment and low investment risk. The real estate sector here is stable, safe and highly profitable. And this is despite the volatility in world markets, the crisis in the real estate market in Europe and global political instability. Dubai is among the five safest metropolises in the world.
In 2013, the GDP was at the level of 509 billion dollars, the outlook for 2024 is almost 537 billion. The real estate market expects significant growth in the near future, ROI of eight to twelve percent, and if you invest in the right project, a high return on capital.
What risks do you encounter in the real estate market?
The main risk that clients are increasingly paying for is, unfortunately, insufficiently qualified real estate agents. In many cases, they offer what is not in their competence. If a broker wants to arrange the sale and purchase of real estate, he must have licenses, which are issued only by a regulatory body. The same applies to renting, managing apartments or so-called holiday homes, i.e. short-term rentals.
All of them require obtaining specific licenses. There are more and more brokers on our market who do not have them, but present themselves as such on social networks and websites.
In addition to licenses, they must have a permit to sell real estate, which they are required to show to the client via a special QR code. After scanning the QR code, the client sees not only information about the broker, but also about the property. The same applies to so-called off-plan projects or secondary sales, where the owner's name is not published.
The client should also be careful during the sales process. When buying an investment apartment from paper, it is important how the developer classified the property in the Dubai cadastre.
In some cases, it is not possible to rent an apartment in the form of a short-term lease, i.e. for less than a year.
Currently, in our office IQPRO Real Estate, I am dealing with several buyers from Slovakia and the Czech Republic in cases where they bought a property from another real estate company that did not warn them about this, and so they have lost profit. These are investors who made the deal with the intention of a high return even assuming personal use of the property.
What do you consider to be the advantages?
It is certainly worth mentioning that there is a zero percent income tax and capital gains tax. Dubai also has a double taxation agreement with Slovakia. When buying real estate worth 500 thousand or more, you get a 10-year golden visa, which can be transferred to loved ones.
And, of course, the aforementioned high return.
What capital is needed to buy a property?
Dubai offers comparatively lower prices per square meter than many other large cities. Prices per square meter in Dubai Marina are almost the same as in downtown Bratislava. To give you an idea, in Dubai it is currently possible to buy an apartment for as little as 175 thousand euros, which, of course, includes various services such as a fitness center, swimming pool or reception.
There are more and more offers for investing in real estate in Dubai on the Internet. Where can an interested party verify the qualifications of a real estate partner, the existence of building permits, and more?
In Dubai, there is a government institution called the Dubai Land Department , where all building permits, changes, and information about the developer are registered. All real estate transactions, whether they are land, industrial buildings, or residential properties, are also recorded in this register.
Can a client from Slovakia come for a viewing?
Clients can come to view the property in person, but of course we can also arrange the viewing online.
Our company also organizes "one to one" meetings. All clients, including potential ones, will be able to meet with me in Bratislava on November 6-7, 2024.
All you have to do is reserve a place by sending me an e-mail.
You have been doing business in Dubai's real estate waters for decades. What exactly does your company IQPRO Real Estate offer?
At IQPRO Investment Group, we are also real estate investors ourselves. Having lived in Dubai for more than 20 years and working in this segment, I dare to say that I have the environment, business and Dubai laws at my fingertips. Our holding company and its subsidiaries have all the necessary permits and licenses for all types of real estate transactions. Including licenses for short-term and long-term rental or complete property management.
In addition, we offer our clients a property furnishing service, where the client can freely focus on their activities and business, and we design and furnish the entire property according to their requirements. Our company's know-how is built on a special approach and continuous service for the client.
As IQPRO Investment Group, we also offer our clients support and services in the field of finance. We specialize in providing comprehensive mortgage services tailored to the diverse needs of our clients in the complex area of real estate financing, thorough financial analysis of the client's situation, and assistance during the application and approval phase of a mortgage loan. In addition, we are proud to provide continuous support and advice even after the mortgage approval phase, ensuring that our clients receive help in understanding their obligations, managing payments, and, if necessary, exploring refinancing options. Our commitment to personalized service and attention to detail sets us apart from other real estate companies.
Our unique service is exclusive investment packages for carefully selected "off-plan" projects. Depending on the client's preferred investment length, they can bring him a return on investment from 29 percent for a six-month package to 54 percent for a 24-month package. In addition, the structured payment plan gives the investor a solid opportunity to gradually finance his investment.
What does a client of your company have to provide in order to use one of the investment packages?
In practice, this works for us and looks like this. Before we choose the most advantageous investment package together with the client, we need to know not only his idea. When registering, the client must provide us with his personal data, the amount of free funds that he wants to invest in the real estate market, as well as their time availability, preferences, the type of property he wants to invest in, and finally the location in Dubai. Then, we will select the right investment package based on the market.
How are investor finances protected in your company?
All investor payments go to a so-called escrow account, which is controlled by a state authority. This means that investor finances are protected at all times. A key advantage of gradual financing is that by paying 30 to 50 percent of the total value of the property, the client has the opportunity to sell it with a high capital gain.
At the same time, we guarantee that the investment opportunities offered by our company, but also in the real estate market in general in the UAE, are more than 90 percent safe. You will not find such a guarantee anywhere else.
Three pieces of advice for potential investors in the Dubai real estate market?
If you are planning to buy a property in Dubai, at the beginning you should definitely choose the right location very carefully, which will meet your ideas and needs. Here I would like to say and highlight a bit that there are also more interesting and better investment locations, such as the world-famous Palm Jumeirah island. The second piece of advice is to choose a property that matches your budget and the required investment return. The last and most important piece of advice, as I mentioned above in the interview, is to make sure that you are working and communicating with a responsible broker. Long-term and thorough knowledge of the real estate market in Dubai is an important factor for every broker for the coming years. This will prevent any disappointments related to a bad choice or unrealistic investment expectations. It is important to choose a trustworthy local partner who will guide you through the entire purchase process from selection to transfer of the property to your name. And then he will professionally take care of the rental or management of your property.
