Blog

Dubai is one of the top destinations not only for tourists but also for investors. Among the best and most attractive investment options is the Real Estate market. Despite the modern options available to people nowadays to invest in bitcoin, stock market, bank products, investment funds, etc. Real Estate remains one of the most lucrative investment avenues even today. Since our birth till now there is a certain fact saying that real estate investment is considered one of the safest and best options for investing. It is considered that way for multiple reasons: it provides security to investors and is a hedge against inflation, it is a physical asset that is excellent for portfolio diversification, it is non-volatile and essentially risk-free over a long period of time and is available to everyone as opposed to for experts only and can generate yearly passive income of 7%-12% from your total investment. But why is Dubai so popular among investors?

Why invest in Dubai real estate?

A very famous American businessman and author, Robert Kiyosaki once said, “Real Estate investment, even on a very small scale, remains a tried and true means of building an individual’s cash flow and wealth.”

Dubai is located between east and west, has world-class infrastructure and growing tourism sector has evolved into an investment hub. Dubai can offer a wide range of opportunities and benefits, when it comes to investments.

The main trends in investments have changed. If the most important factor of whether to invest or not was location, now investments are no longer confined to the geographical boundaries. People are investing in cities with developed economy in order to earn good returns. So, what made Dubai one of the main destinations for real estate investors?

• Dubai is the fastest growing emirate compared to other six emirates in UAE
• Dubai has a robust economy
• Consistently growing population
• Development and innovation of the city is beyond imagination.
• Political situation in Dubai, and the rest of the country is very stable
• World Expo2020 attracting about 25M people from 175+ nations.
• Numerous projects with attractive offers and deals.
• High Return On Investments.

Dubai real estate investments and market situation 

Before trying to understand future trends and forecast of Dubai real estate market for the year of 2019, it is important to understand its performance in previous years. Since 2015 Dubai real estate market has been through ups and downs. Dubai real estate prices declined a lot in the period from 2015 till 2016. Since then, real estate market has been in a recovery state.

Even though the prices didn’t fall as much, but it brought significant changes to the market. The average sales price decreased by around 5.6% in 2017, while the average rents fell by 7%. It can be considered that price correction was the main reason behind the decline and this made the market become one of the hottest in the past two decades. In 2004-2006, when Dubai was expanding rapidly, 25% of all cranes in the world were located in this small city.

Another major reason for the market decline was oversupply. Due to Expo 2020 developers started launching numerous projects without meeting actual demand. It led to price decline on ready property and off-plan. Earlier, international investors were focusing on high-end and luxury properties but in the recent years that demand has shifted towards smaller and more affordable units. Looking at the shifting trend, developers had to adjust and shift their focus, as well.

Course towards stabilization 

A number of governmental programs and policies implemented in 2018, like the 10-year investor’s visa, 100% foreign ownership of UAE-based companies, stabilization of UAE economy due to the rise of oil prices, special offers from developers which allow to pay 60% of the purchase price after completions, will definitely bring a positive effect on the Dubai real estate market.. Dubai has experienced influx of Chinese investors, lately, which made Dubai government provide visa on arrival for all Chinese nationals.

Dubai property market is expected to be recovering in the early part of 2019, before it kicks back to become the hottest real estate market by late 2019. For those who want to invest in Dubai Real Estate market – middle of 2019 is the best time to buy allowing sufficient time to plan for it.

Every business has different measures of success, but the main one, which is intrinsic to every business is your net income. When it comes to real estate – the number of closed deals signifies real success or failure. So, what can be done in order to eliminate failure and get closer to a success?

When we take a look at the previous history – the main negotiation style was “win-all” which meant selling to a client at any cost. Nevertheless, everything changes. More and more projects have been developed, people became more educated about real estate and, what is more important is that the need of the client has changed. If before they cared about price, money, project, broker now they pay attention to the value that they can get, the long-term relationships with the real estate consultant and service quality. “Value-based” relationship style gained extreme importance in real estate, so much so that we can even consider that property consultants must be genuinely empathetic towards the clients.

To have a better understanding of the process lets take a gander at a value-based negotiation. This type of negotiation understands value and needs of both parties and exerts every effort towards the buyer to find amiable solutions that satisfy both sides. Instead of being focused on the price and selling property, it is important to work in harmony and to offer the best options that will satisfy both parties and avoid challenges that may thwart the transaction.

How to start your value-based negotiation?

Be Ready

Instead of just following the flow of the conversation, without any strategy, plan your pitch. Think of what you would like to receive in the end. Plan and strategize your meeting with the client by setting up the following questions:

• What is my end goal?
• Who is my client and what is he looking for? What is his objective?
• What is the key information I need to receive from the client in order to understand him/her better and to offer the best product?
• What obstacles may appear during this meeting?

Anticipate the challenges 

Be careful with the information which you are going to present to the client. Avoid opinions about property value or real estate market situation.

Use expert’s analysis, real numbers from reliable sources. Share real estate market numbers at the beginning of the negotiation and keep them at the center of your discussion.

Listen to the client and the information he is going to share. You can then begin to work towards a number suitable to each side, based on facts.

Be emotionally unattached

Keep your frustration and any other negative emotions under control. There will be annoying clients who may have more questions than others. Some of them will be first time buyers, some may have had a bitter experience, and some are just extra careful. You must understand that it is their right to know everything until all their concerns have been addressed. This law is especially true for ideal outcomes in a negotiation. The more straightforward and fact-based you can stay, the stronger the chance for a positive outcome for your client. Remember the golden rule of selling anything – Appeal to the heart.

Don’t jump into solution too early

If the client has any issues with the property or the deal – don’t give him your solution beforehand. In many cases real estate consultant can arrive at a solution that may lead to a conflict. This tactic may leave both sides unsatisfied because the negotiations weren’t value based. What is more is that it may look “unprofessional” in the eyes of the client. Instead, listen to all his/her concerns, suggestions and share your constructive solution of the problem. When you hit a stumbling block, pause and think outside the box. This is your opportunity to increase your value in your clients’ eyes and defend your service cost.

The strategy that works well looks very simple – win-win or no deal. When your negotiations follow this principle, you will earn more closings, more referrals, and experience a richer real estate career.