Part 4 of Training Dubai Real Estate Agents: Why Dubai — Transcript

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1. 0:00you have a 3.5 million population in
2. 0:04dubai which has
3. 0:05been which is 90 which is showing 94
4. 0:08increase
5. 0:10uh
6. 0:11from
7. 0:132008 to 2018.
8. 0:17so growing population growing population
9. 0:20is one of the reasons you should invest
10. 0:22in dubai growing population means more
11. 0:24demand means more buyers means more
12. 0:26tenants means more need to the product
13. 0:29that you are investing in
14. 0:3290 of residents which yesterday we
15. 0:34discussed actually 88.5 percent almost
16. 0:3889 percent of the residents in this
17. 0:40country are expats
18. 0:42which means it's a very welcoming
19. 0:43country for expats
20. 0:45right
21. 0:46you don't i don't think you have such
22. 0:48numbers in any other country i'm not
23. 0:49sure right within four hours we can fly
24. 0:52to a third of the world within four
25. 0:54hours
26. 0:55and
27. 0:56with within eight hours to two-thirds of
28. 0:58the world so it's showing the strategic
29. 1:01location we're close to europe we are
30. 1:03between europe east and west
31. 1:08other than the strategic location
32. 1:11you are looking at the number of
33. 1:13visitors that are going
34. 1:15through dubai and visiting dubai dubai
35. 1:18is a gateway to the middle east africa
36. 1:20south asia which accounts for
37. 1:22approximately 3 billion people
38. 1:27the world busiest international airport
39. 1:29is dubai international airport serving
40. 1:3289 million passengers a year
41. 1:35almost 3 500 annual hours of sunshine
42. 1:41you have a lot of sunny days
43. 1:44the world's longest uh
44. 1:46driverless metro is in dubai 52
45. 1:49kilometers 30 billion dollars was spent
46. 1:52by tourists in 2018 30 billion dollars
47. 1:56that's like that's like 120 130 billion
48. 1:59their homes it's a load of money
49. 2:03dubai has retained its position as the
50. 2:05fourth most visited city
51. 2:08with 15.9 million passengers in 2017 or
52. 2:1318 if i'm not mistaken so if you look at
53. 2:152015 to 2020 every year we had between
54. 2:1811 to 16 million visitors for expo 2020
55. 2:23everyone was expecting 25 million
56. 2:25visitors during one year from october
57. 2:282020 to october 2021 but but because of
58. 2:31the covet
59. 2:33everything changed right
60. 2:38it's ranked the most
61. 2:40livable city in the mena region
62. 2:43and now it's aiming to be
63. 2:45the best city to live in
64. 2:47in the whole world
65. 2:50it's a very safe and sound country we
66. 2:53are the world's safest country and we
67. 2:56are looking at zero percent crime rate
68. 2:59zero percent crime rate doesn't mean
69. 3:02that there are zero crimes in this city
70. 3:04crime rate is a ratio between the number
71. 3:07of crimes for every
72. 3:10if i'm not mistaken ten thousand or
73. 3:12hundred thousand per people in a year
74. 3:16so the number of crimes we are having
75. 3:18is less than one for every
76. 3:21either ten thousand or hundred thousand
77. 3:23people in a year
78. 3:24that's why the crime rate is zero point
79. 3:27something
80. 3:29okay and there are not many countries
81. 3:31with this crime rate with such low crime
82. 3:34rate so safety and security
83. 3:37tax-free we don't have any property
84. 3:39taxes and residential properties it's
85. 3:41100 freehold ownership earlier we had
86. 3:4490 90 years old different forms of
87. 3:46freehold now but we will talk about the
88. 3:49types of ownership there are two types
89. 3:51of freehold ownership
90. 3:53actually three types of freehold
91. 3:55ownership one is freehold for all
92. 3:56nationalities one is freehold for gcc at
93. 3:59the one the other one is freehold four
94. 4:02mrt is only which is very less
95. 4:04so majority of the of the all of the
96. 4:07projects and properties that we are
97. 4:08discussing in our
98. 4:11office in our business are freehold for
99. 4:14all nationalities but there are
100. 4:16properties which are freehold for gcc
101. 4:18nationals also like
102. 4:20freehold for gcc like what
103. 4:23sheriff
104. 4:28other than freehold what is the other
105. 4:30type of ownership
106. 4:32lee's home please hold like what
107. 4:37they're different
108. 4:41many of these areas and many yeah so in
109. 4:44these areas the owners are actually
110. 4:46leasing the property from the government
111. 4:48or from whatever party private or
112. 4:50government from government actually
113. 4:52they're leasing the property and they
114. 4:53are paying you a small amount for leaves
115. 4:55every year and they have the right to
116. 4:57sell their rights to a third party means
117. 4:59to replace the tenant selling their
118. 5:02right and ownership under structure is
119. 5:04called selling your leasehold and these
120. 5:06leasehold properties the agreements
121. 5:09their leasehold agreements might
122. 5:11be between 1 to 99 years
123. 5:14so dubai is offering 100 freehold
124. 5:17ownership this is something that you
125. 5:19have to explain to some clients also
126. 5:21because they are assuming that only arab
127. 5:24nationals or only arabic countries can
128. 5:26own property many of these people
129. 5:29many clients are assuming that they do
130. 5:31not have
131. 5:32a
132. 5:33freehold hundred percent ownership here
133. 5:36in dubai high rental yields is a very
134. 5:38big advantage in dubai in europe you are
135. 5:40not getting more than two to three
136. 5:42percent roi on an average
137. 5:44in dubai by average you are getting
138. 5:46seven to ten percent roi return on
139. 5:48investment or rental income
140. 5:52what's the difference between roi and
141. 5:54roe
142. 5:55return
143. 5:58can you explain
144. 6:02capital paid capital perfect so if i'm
145. 6:06buying a property for a value of 1
146. 6:08million there and i have paid 500 000
147. 6:11dirhams and i'm getting a rent of
148. 6:14hundred thousand dirhams my roi is 10
149. 6:16percent by but my roe is
150. 6:22i paid 500 000 i'm getting 100 000.
151. 6:2520
152. 6:2620
153. 6:27so return on equity is the is your
154. 6:30income or your return and the amount
155. 6:32that you have paid till that date that
156. 6:35you're doing the calculation right so
157. 6:37that is that we will we'll go through
158. 6:38them later dubai international financial
159. 6:41center was ranked 12th globally
160. 6:44and
161. 6:45um
162. 6:48dubai placed seventh and the economic
163. 6:50potential index so the economic growth
164. 6:52and the importance of difc and many
165. 6:55free zones which are having very
166. 6:57important role
167. 6:59dubai is home to many landmarks
168. 7:01including the world's tallest tower
169. 7:03versus khalifa with 828 meters high in
170. 7:07dubai every
171. 7:10uh
172. 7:11one million dollar
173. 7:13buys you 100 square
174. 7:16meters
175. 7:20143 square meters
176. 7:23in london
177. 7:24you get 31 square meters for 1 million
178. 7:27dollar by average
179. 7:29in new york you get 31 square meters in
180. 7:32monaco only 16 square meters by average
181. 7:36hong kong is not mentioned here it has
182. 7:38to be more ah monaco is more expensive
183. 7:40than hong kong
184. 7:43okay okay
185. 7:47so this is
186. 7:49one of the reasons only one of the
187. 7:51reasons why ubs in their bubble index
188. 7:54report were
189. 7:57was showing that dubai is one of the
190. 8:00most under the only undervalued the only
191. 8:03underpriced market among those twenty
192. 8:11standard five living
193. 8:13in none of these countries you get the
194. 8:15safety and security you get in dubai in
195. 8:17none of these cities you get the
196. 8:21lifestyle that you get in the wild and
197. 8:23the standards of living that you get in
198. 8:25dubai none of them not even in monaco
199. 8:32well i'm sure you guys experienced this
200. 8:35whenever i travel from dubai wherever in
201. 8:37the world i go to the minute i step out
202. 8:40of the airport for the first one or two
203. 8:42days i will be like
204. 8:44e
205. 8:45e e
206. 8:47have you have you felt this right
207. 8:50wherever you go from dubai first one or
208. 8:52two days you'll be like
209. 8:54one big exception
210. 8:57over 160 nationalities 163 nationalities
211. 9:01are purchased properties in dubai
212. 9:03the transfer fee in dubai is lower than
213. 9:06110
214. 9:08real estate markets all over the world
215. 9:10we are paying only four percent transfer
216. 9:12fees in many countries you have to pay
217. 9:14up to two i have seen markets like in
218. 9:17cyprus for some kind of properties you
219. 9:19have to pay up to 21 percent
220. 9:23and it cannot happen in one day here in
221. 9:26dubai you generate the form f on the
222. 9:29virus app even the noc these days you
223. 9:32don't have to collect the why land
224. 9:33department is hundred hundred percent
225. 9:35paperless now all you have to do
226. 9:39you generate the form f1 to buy rest app
227. 9:41buyer gets a message seller gets a
228. 9:43message they click on the link that
229. 9:45means their signature right
230. 9:48and then next what you have to do once
231. 9:49the noc is updated in the system you
232. 9:51don't even have to go to the developer's
233. 9:53office to collect the noc all you have
234. 9:56to do is the reference number you upload
235. 9:58the documents by mobile or by laptop or
236. 10:00computer or ipad you get a reference
237. 10:02number that reference number what is it
238. 10:04what's a number
239. 10:06so you get a number that reference
240. 10:08number you give it to the trustee
241. 10:11and the trustee will call you when
242. 10:12everything is ready
243. 10:15manager check title deed manager check
244. 10:17title date that's it transfer is that
245. 10:20and the transfer fee so the process of
246. 10:22transfer in both secondary and the
247. 10:24process of registration land
248. 10:26registration in primary it cannot be
249. 10:28easier and simpler and faster
250. 10:32so things are very easy things are very
251. 10:34fast and the fees of transfer is lower
252. 10:36than over 110 countries in the world
253. 10:39you're paying only four percent transfer
254. 10:41fees
255. 10:42i'll talk about the history of transfer
256. 10:44fees later
257. 10:46high rental yields 7 to 10 percent
258. 10:51by average
259. 10:52100 freehold ownership growing
260. 10:55population expo 2020 c still expo 2020
261. 11:00can be one uh
262. 11:02advantage for this country thanks to
263. 11:04expo the country and the
264. 11:07economic growth and the standards of
265. 11:10living and the way we are doing business
266. 11:12the way we are living in dubai
267. 11:14is being introduced to
268. 11:16millions of people who have not known so
269. 11:19much even if they traveled to dubai even
270. 11:21if they heard about dubai they have
271. 11:23never known so much about dubai so the y
272. 11:26is being introduced to more number of
273. 11:27people and you can expect the this is
274. 11:31what i've been saying and everyone has
275. 11:33been saying from the beginning you
276. 11:34cannot expect expo to have immediate
277. 11:38impact
278. 11:40i have interviewed i've talked to many
279. 11:43people who have been parts of
280. 11:45many expos
281. 11:47as businessmen as organizers as
282. 11:50financial advisors and all okay and they
283. 11:53all
284. 11:55say the same thing they say that expo
285. 11:57doesn't have immediate impact
286. 12:00it takes time because
287. 12:02expo gives you an opportunity to
288. 12:04introduce yourself to many businesses to
289. 12:06many industries it takes time until
290. 12:09these guys they come they start
291. 12:11enlisting they start building
292. 12:13and you get the you see you feel the
293. 12:15impact of of
294. 12:17their investments
295. 12:19uh
296. 12:20safe and sound country booming tourism
297. 12:23and hospitality tax-free we have no
298. 12:25property taxes again for us we've got
299. 12:28used to it it's very normal but
300. 12:32booming tourism cosmopolitan culture
301. 12:35world-class infrastructure especially
302. 12:38the roads and transport oh my god
303. 12:41this is this is the most impressive
304. 12:43impressing thing in dubai for me
305. 12:49that's right that's right that's right
306. 12:52we can't leave anywhere else we can't
307. 12:53live anywhere else
308. 12:55uh stable currency one there have one
309. 12:58dollar has been three point six six
310. 12:59three point six seven there comes for
311. 13:01the past god knows 30 years
312. 13:05from the beginning probably since since
313. 13:08uh the currency is changed from rupee to
314. 13:10derham i think it has always been one
315. 13:13dollar have been 3.67 which is a very
316. 13:15important thing because see there are
317. 13:17many many countries where you in this in
318. 13:20in in real estate this is the same thing
319. 13:23that happened in mumbai or in in in
320. 13:25turkey this was the case over the past
321. 13:27two three years right
322. 13:29in this when you look at the currency of
323. 13:31that country the value of your
324. 13:33investment has doubled but when you're
325. 13:35calculated in terms of dollar you say
326. 13:37that you lost 50 actually
327. 13:40so stable currency is very important
328. 13:43convenient payment plans we are having
329. 13:45post handover payment plans in many
330. 13:47projects for ready properties and
331. 13:49strategic location