By: Mustafa Aziz, Founder and MD, HomeTrack Real Estate
Compiled by: Binesh Babu Panicker
The challenge in the Dubai real estate market is the intense competition and sometimes it is seen as pressure selling by brokers, which may end up in buyers taking wrong investment decisions. Cultivating the right mindset is essential and it allows for better decision making, greater satisfaction with financial progress for the clients.
Having worked in treasury and wealth management globally, I have learned over the years that it is very important to understand clients’ needs and objectives. As a real estate brokerage professional, one should focus on proactive planning in terms of the client’s requirement and assessing their risk tolerance which would align with their investment and financial goals.
In Dubai, you have too many property developers selling off-plans/primary sale, so looking at their affordability to meet future commitment is the key and understanding their timeline, exit strategy is of paramount importance. Keeping your clients updated about the current market information and analysis will help them to keep track of their investment.
In terms of pros and cons of Investment, a broker should discuss in detail as to why a client should invest in the certain property or a project and also take the clients around all the key locations. A thorough comparative analysis should be done when you are advising a client on different developments in terms of pricing per square foot and mainly the expected rate of return on investment with a time horizon from five to ten years.
The risk on Investment cannot be eradicated but mitigated. The exchange rate risk must be explained if the client is based overseas, they can hedge the risk by entering into a forward rate contract.
A property consultant should conduct full client evaluation before recommending them on any real estate Investment. The client always needs good advice and guidance from the real estate professionals whose goal is to increase the number of their clients based on trust and honesty.
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About the author
Mustafa Aziz is a seasoned banker with over 30 years of experience in the financial services industry in both the UK and the Middle East. Currently based in the UAE, he runs a real estate brokerage firm offering investment advice and guidance to clients from all over the world.
