Dubai is currently the hottest real estate market in the world. Elie Naaman, founder and CEO of real estate developer Ellington, talks about opportunities and risks for buyers from Germany and around the world. Mr. Naaman, many people think of luxury and expensive marble when they think of real estate in Dubai. Is that a prejudice? You don’t need the most expensive materials to create a beautiful home. The experience of entering the house is crucial. Our properties are designed so that you only have to bring the furniture, which increases the rent by 25 to 35 percent. Who buys real estate in Dubai? Our customers come from 206 countries. There are new buyer groups every two years. In 2015, many came from Gulf states, later from China, and two years ago more and more Russians. Germans, French and Italians are also among the buyers. Why are people drawn to Dubai? Low taxes play a role, but security, lifestyle and infrastructure are also important. The government has done a lot to make Dubai more attractive, for example in the healthcare sector. Dubai offers quality living all year round. How do geopolitical crises affect the market? Crises drive people to Dubai because it is considered a safe haven. Many invest in rental properties with a yield of five to six percent in the downtown area and up to 15 percent for vacation homes. What are the hottest neighborhoods for investors? Downtown, Business Bay, Maydan, Palm Jumeirah and Dubai Marina are in demand. There are many attractive districts today, not just on the beach. How easy is it to invest in Dubai? Very simple. You only need a copy of your passport and a credit card to buy off-plan property. You have to come to Dubai once for the handover. How do your customers pay? Off-plan purchases are not permitted on credit, except for the balance on transfer. Around 20 percent of customers take out a mortgage. Is there a limit to the real estate market? The market will experience a correction at some point, but it is currently stable. Even geopolitical changes such as the return of Russians are not expected to cause a major slump.
People are queuing up to buy a property like this
