Latest news with #FamProperties
The National
17-05-2025
- Business
- The National
Dubai property buyers become more picky despite thriving market, experts say
Many Dubai property investors are getting more selective about where to put their money, experts have said. The Covid-19 pandemic instigated a boom that has eased off with buyers now thinking long-term about amenities, location and proximity to transport, they said. The National spoke to developers, salespeople, agents and more on the sidelines of the 'game-changers 2.0 real estate summit' in Dubai on Friday to gauge how the red hot market was going. Firas Al Msaddi, chief executive of Fam Properties and event organiser, said the market was at an "all-time high" with strong demand for both the resale and off-plan market. But he said people were becoming more selective as more off-plan units came on-stream as many developers had come to the UAE on the back of the boom and not everyone was 'producing the best of the best'. 'Every property buyer, every investor, [and] every broker are very sensitive to the overall value that product offers,' he said 'People are really … digging and understanding and learning before making a decision. Even if the market cools down a bit because of the supply, this is only temporary – it's only a matter of time for the demand to catch up.' Mohamad Abbas, sales manager at Dubai Holding Real Estate, said he had been in the market for 12 years and couldn't see an end to the boom. 'Maybe it will be stable in a couple of years from now, but it will never go down,' he said. Mr Abbas said in the past quarter they had sold villas for hundreds of millions of dirhams and the ultra-luxury market was strong. At the other end of the market people who wanted to buy cheaper units were willing to move to remote locations but people from across the world were buying. "I can say the United Nations are buying with us,' he said. 'The whole market is buying with us.' The National earlier this week reported on the unforgiving property world, with one agent stating only about 20 per cent of agents are doing really well – a sobering note far removed from the glitz on Friday. Dubai's housing market surpassed annual sales of Dh500 billion ($136.1 billion) for the first time in 2024, with huge demand for villas, town houses and apartments. The surge is being driven by liberalised visa rules, safety and security, more infrastructure, increased companies setting up, lower interest rates and the unrelenting population increase in the emirate. Consultants ValuStrat said about 90,000 new residents arrived in Dubai in the first quarter of 2025. According to Dubai Statistics Centre, the population of the emirate on Friday stood at 3.94 million. Top performing areas in Dubai include Jumeirah Village Circle, Business Bay, Dubai Hills Estate, Dubai South and Motor City. But what is more difficult to assess away from the headlines of lavish launches and unending booms is when the property market is going to cool. The event on Friday was a sell-out, with 2,000 tickets sold and some even shelling out Dh30,000 for VIP seats at the front. It aimed to share the latest trends, rules and regulations for brokers and agents, in partnership with the Dubai Land Department. Artificial intelligence was prominent with a report by Fam Properties stating AI was encouraging more younger buyers into the market as they could access data more easily. But questions about the boom were front and centre. Manan Law, managing partner at Dubai-based mortgage firm, Equifirst, said the surge that started in 2020 had ended as the world was no longer emerging from the major global event that was Covid-19. He said that in these scenarios Dubai and the UAE has always prospered as a haven. But he cautioned people expecting 50 per cent returns from that era would be disappointed, as this was now down to between 10 per cent to 12 per cent. 'In 2020, you could have closed your eyes and bought anything. And it would have yielded you a good return,' he said. 'Now you have to start looking at who is the developer; what is the community; what are the amenities; and what is being built around.' Mr Law said people in their keenness to get on the property train were forgetting that property was a 'fixed illiquid asset and it takes time'. 'It is not a stock. You're not supposed to buy a property today and it'd be up 15 to 20 per cent in a year," he said. 'That's not how real estate works. it is a long-term investment.' Mr Law confirmed the market was maturing and mortgages accounted for 40 per cent of sales in Dubai with lower interest rates helping. "To make the investor feel more comfortable, there's more and more heavier lean towards financing,' he said. 'It's just the normal progression.'
The National
17-05-2025
- Business
- The National
Will Dubai's property boom ever end?
Many Dubai property investors are getting more selective about where to put their money, experts have said. The Covid-19 pandemic instigated a boom that has eased off with buyers now thinking long-term about amenities, location and proximity to transport, they said. The National spoke to developers, salespeople, agents and more on the sidelines of the 'game-changers 2.0 real estate summit' in Dubai on Friday to gauge how the red hot market was going. Firas Al Msaddi, chief executive of Fam Properties and event organiser, said the market was at an "all-time high" with strong demand for both the resale and off-plan market. But he said people were becoming more selective as more off-plan units came on-stream as many developers had come to the UAE on the back of the boom and not everyone was 'producing the best of the best'. 'Every property buyer, every investor, [and] every broker are very sensitive to the overall value that product offers,' he said 'People are really … digging and understanding and learning before making a decision,' he said. 'Even if the market cools down a bit because of the supply, this is only temporary – it's only a matter of time for the demand to catch up.' Mohamad Abbas, sales manager at Dubai Holding Real Estate, said he had been in the market for 12 years and couldn't see an end to the boom. 'Maybe it will be stable in a couple of years from now, but it will never go down,' he said. Mr Abbas said in the past quarter they had sold villas for hundreds of millions of dirhams and the ultra-luxury market was strong. At the other end of the market people who wanted to buy cheaper units were willing to move to remote locations but people from across the world were buying. "I can say the United Nations are buying with us,' he said. 'The whole market is buying with us.' The National earlier this week reported on the unforgiving property world, with one agent stating only about 20 per cent of agents are doing really well – a sobering note far removed from the glitz on Friday. Dubai's housing market surpassed annual sales of Dh500 billion ($136.1 billion) for the first time in 2024, with huge demand for villas, town houses and apartments. The surge is being driven by liberalised visa rules, safety and security, more infrastructure, increased companies setting up, lower interest rates and the unrelenting population increase in the emirate. Consultants ValuStrat said about 90,000 new residents arrived in Dubai in the first quarter of 2025. According to Dubai Statistics Centre, the population of the emirate on Friday stood at 3.94 million. Top performing areas in Dubai include Jumeirah Village Circle, Business Bay, Dubai Hills Estate, Dubai South and Motor City. But what is more difficult to assess away from the headlines of lavish launches and unending booms is when the property market is going to cool. The event on Friday was a sell-out, with 2,000 tickets sold and some even shelling out Dh30,000 for VIP seats at the front. It aimed to share the latest trends, rules and regulations for brokers and agents, in partnership with the Dubai Land Department. Artificial intelligence was prominent with a report by Fam Properties stating AI was encouraging more younger buyers into the market as they could access data more easily. But questions about the boom were front and centre. Manan Law, managing partner at Dubai-based mortgage firm, Equifirst, said the surge that started in 2020 had ended as the world was no longer emerging from the major global event that was Covid-19. He said that in these scenarios Dubai and the UAE has always prospered as a haven. But he cautioned people expecting 50 per cent returns from that era would be disappointed, as this was now down to between 10 per cent to 12 per cent. 'In 2020, you could have closed your eyes and bought anything. And it would have yielded you a good return,' he said. 'Now you have to start looking at who is the developer; what is the community; what are the amenities; and what is being built around.' Mr Law said people in their keenness to get on the property train were forgetting that property was a 'fixed illiquid asset and it takes time'. 'It is not a stock. You're not supposed to buy a property today and it'd be up 15 to 20 per cent in a year," he said. 'That's not how real estate works. it is a long-term investment.' Mr Law confirmed the market was maturing and mortgages accounted for 40 per cent of sales in Dubai with lower interest rates helping. "To make the investor feel more comfortable, there's more and more heavier lean towards financing,' he said. 'It's just the normal progression.'
The National
12-05-2025
- Business
- The National
Dubai estate agents describe ultra competitive sales market
Dubai's booming property market has created a hyper-competitive industry where commissions can reach six figures for high-end, luxury property sales. Increasing numbers of developments are drawing global interest from super-rich buyers and creating an influx of ambitious real estate agents eager for a slice of the fortune. As more brokers come to Dubai, experts say competition will become even tougher. 'I would say only 20 per cent of brokers here are really doing well,' said Firas Al Msaddi, chief executive of Fam Properties. 'When a deal is done, three to five other brokers have lost out and there are no salaries for brokers who survive on commission. They won't last more than six months without making any sales.' According to data from property intelligence portal DXB Interact, Dubai had 1,240 real estate agencies and 4,500 registered brokers who oversaw 38,600 sales worth Dh78.8 billion ($21.4 million) in 2019. Six years later and there are 7,900 agencies with 27,000 brokers. So far in 2025, a total of 45,485 property transactions have completed, worth Dh142.7 billion. On May 16, a real estate summit at Coca-Cola Arena will share the latest trends, rules and regulations for brokers and agents, in partnership with the Dubai Land Department. Rami Wahood has been selling homes in Dubai since the beginning of 2013 and said it remains a difficult market to break into. 'Some developers only deal with respected and reputable agencies, while others work with anybody and everybody,' he said. 'Developers pay anywhere from 2 per cent to 6 per cent. I've heard stories of brokers giving back all their commission, just to get in the good books of the developers. 'That gives them a higher ranking in their sales, so they are banking on getting future access to more projects or bigger bonuses in the future.' Aida Mateu, from Spain, arrived in Dubai three months ago to take the plunge in real estate after switching her career from adolescent psychology in Barcelona. She works for a company formed only nine months ago on a commission-only deal, so does not earn a salary. 'What is making it difficult is that it all depends on our networking and proactivity, we have to do all the legwork,' she said. Typically, commission paid for selling off-plan property is about 5 per cent of its value. How this is split between agents and agencies varies depending on the company. Some agents claim 40 per cent of the sum, while the agency is paid the remaining 60 per cent, whereas other agencies split profit 50/50 regardless of where business originates from. Ms Mateu, 29, is focusing her efforts on attracting buyers from Spain and Latin America through social media. 'For now, I have not closed any sales, although I am actively working on it,' she said. 'The beginning is hard, especially because it is a very competitive industry, where you have to learn a lot in a short time. 'If you don't sell, you don't get paid. Even so, I'm motivated and I'm constantly training to get my first deals.' Consultants ValuStrat said about 90,000 new residents arrived in Dubai in the first quarter of 2025, edging the emirate's population closer to the milestone four million mark. In record transactions last year, Dubai's housing market surpassed annual sales of Dh500 billion ($136.1 billion) for the first time. Top performing areas were Jumeirah Village Circle, Business Bay, Dubai Hills Estate, Dubai South and Motor City. The emirate is home to thousands of registered property brokers looking to cash in on the surging demand for villas, townhouses and apartments in a fast-growing city. Mr Al Msaddi said he expects Dubai's housing market to continue outperforming other cities around the world. 'People ask, 'there's so much supply − why are prices not going down?,'' he said. 'Dubai has outperformed every area of London, New York and Singapore. 'All these cities have been growing steadily for the last 10 years but in Dubai the demand is insane. Yes, the market is sentimental, but people have built a lot more resilience than before and have a lot more faith in Dubai's resale market, despite the global uncertainties." Mr Al Msaddi said Dubai's runaway housing market has changed considerably in a decade. Tighter regulations for developers − and brokers − mean the market is more resilient and unlikely to suffer from global shocks such as the 2008 banking crisis that caused the value of homes to plummet, he said. Some of the most luxurious Dubai properties can be the hardest to sell. Asad Khan, chief executive of Invest Dubai Real Estate, lost almost everything in the 2008 property crash. Since paying off his debts, he has rebuilt a property portfolio and is the registered agent to sell the Dh180 million Burj Khalifa Palace − the world's highest penthouse. Despite plenty of interest, the 21,000-square-foot apartment on the building's 108th floor remains unsold. 'I remember very clearly how prices just crashed overnight in 2008,' said Mr Khan. 'It's one of those things − you fall down, you get up and learn from your mistakes. Back then, regulation was minimal.' Mr Khan used commission from his property sales from 2003 to 2008 to fund off-plan investment apartments in International City. When the market crashed he lost most of his capital and was forced to return to the UK. Dubai's stricter regulatory laws have reinforced investor confidence, he said, and encouraged his return. 'Before the crash, most developers were heavily reliant on debt and with weak capital structures,' said Mr Khan, who sells mainly to British clients. 'The government has made transactions a lot more digital, everything's online now so it's very fast and transparent. Due to golden visas and the amount of people moving in, Dubai will be able to sustain a crash but we are seeing a lot of bigger investors being more cautious. 'When I started to work on the Burj Khalifa penthouse, I had a huge amount of interest but the market is a little bit more volatile now. It's a sign the ultra-high-net-worth individuals are looking for a deal now, or will wait to see what happens.'
