We chat with Dubai property expert Chris Forrest of One Broker Group, about the continued growth and success of the real estate market in Dubai, UAE.
What did my career look like before Real Estate?
Before I joined One Broker Group as a Real Estate agent in April 2022 I spent 15 years in the UK automotive industry. I was fortunate to work with brands such as Ford, Citroen, Volkswagen and Mercedes. I started at a young age in the position of Sales Executive. I consistently achieved a high level of results to progress my position into Management and held roles like Business Manager and Sales Manager. During this period of my career, I gained a vast amount of experience which laid the groundwork to try my hand in Real Estate.
Why did you decide to try Real Estate in Dubai?
During the Covid pandemic period, the automotive industry was very challenging. It was especially challenging for the dealership I was working at. All the sales staff had left to pursue other avenues of work and the dealership was on the brink of complete closure.
I had just recently joined the dealership after a period of travelling, before COVID we had 4 or 5 staff members to make sure the dealership did not close. I was working 7 days a week and we were selling cars through Microsoft Teams which was very challenging and exhausting and a completely new way of working.
Luckily, we were able to sell enough cars each month to keep the dealership open and today the dealership is in a position to thrive. However, it got to a point where I had run myself into the ground and was looking at a new career path which led me to look at real estate, I decided that Dubai was the place to go as I always had an ambition to live abroad at some point in my life.
What made you pick One Broker Group instead of one of the others?
So, I was still in the UK doing online interviews. One Broker Group was actually the first company I had an interview with and I was drawn to them as the recruiter was friendly and informative. They explained the company’s principles and future ambitions and what was explained to me lined up with my vision for myself. I interviewed with a few more companies after and decided that One Broker Group was the place I wanted to start my Real Estate career.
What surprised you the most when you first started?
The one thing that surprised me the most was the sheer volume of turnover of agents. Most sales jobs in the world can be competitive, especially in Real Estate. It is a sink-or-swim business in which you must have the right mentality and work ethic to survive long-term.
Too many agents come to Dubai wishing for the dream life but not willing to put the work in, to achieve it. I am a huge football (Soccer Fan) and one of the most famous footballers ever Pele said “Success is no accident. It is hard work, perseverance, learning, studying, sacrifice and most of all, love of what you are doing or learning to do.”
What is your greatest achievement so far?
I would say my greatest achievement so far is the property I sold in a very well-known development called Emaar Beachfront. It isn’t the most expensive property I have sold but it was certainly one of the most complex deals and I was able to learn a lot not just about the intricacies of that particular deal but also about myself in that situation.
What distinguishes you as a Broker from everyone else?
I would say my ability to adapt. The real estate market in Dubai is ever-changing and a lot of clients have a diverse portfolio of properties in numerous locations. Most agents in Dubai confine themselves to one community but I believe this restricts the ability to help out a huge portion of the buyers in Dubai as they own properties all over.
The reason I say being able to adapt is important is because I can adapt to any property type, any location and each property is unique, being able to adapt to that particular property’s specific challenges can really set you apart from any agent and give you the ability to build a long-lasting relationship with your client. Not just a relationship that is confined to one specific location or property type.
What does the future look like for the Dubai Real estate market?
We are very fortunate to have a government that can create plans for the future and execute those plans effectively to achieve their goals. The ruler of Dubai – Sheikh Mohammed bin Rashid Al Maktoum and the government of Dubai created an Industrial Strategy to be completed by the year 2030 in which they aim to develop key sectors such as aerospace, maritime, pharmaceuticals and food manufacturing.
We have already started to see these plans being implemented such as the growth of the Al Maktoum airport in Dubai South. This airport will become the largest in the world for passenger and commercial traffic. Creating a vast amount of jobs and increasing the population significantly as people from all over the world look to move to Dubai.
This is just one example of the sectors mentioned above and the more people who continue to look to move to this ever-growing City the more the Real Estate market thrives through people renting, purchasing and investing. There is also a constant growth in international property developers looking to the UAE as it is a prime country to build and sell to supply the constant and ever-increasing demand for real estate.
What trends are shaping the Dubai Real Estate Market? And How are they impacting investors?
The number one trend in Dubai is the Off-plan market. Dubai has seen a huge amount of growth in the number of developers entering the market in the last year alone. Since the start of 2023, there have been approximately 118,000 units launched.
These developers have come up with unique payment plans never before seen in Dubai in order to accommodate first-time buyers and new property investors. Nowhere else in the world has a structure been created to cater for the growth of Real estate.
One of the other big trends is the experiential growth in investors looking for long-term rent and short-term holiday home income. Due to Dubai being a central hub for travel around the world, more and more people are visiting Dubai year on year. From January to March 2024 the number of tourists has increased to 5.18 Million compared to the 2023 figure of 4.67 Million. That is a 9.17% Increase from the previous year. Any new investor can be confident when purchasing in Dubai due to the strong growth of people entering the country.
How do you see the impact of the new regulations and the Real Estate Market in Dubai?
The amendment to the regulations of Real Estate laws in the UAE is probably one of the biggest changes which very few people understand the significance of. This change is concerned with regulating real estate development activities in the Emirate, the pricing of all real estate projects, and providing escrow accounts, in line with regulations that ensure the protection of the rights of investors, real estate companies and developers. So, any property buyers can purchase with the confidence their money is safe, secure and regulated in such a manner, reassuring them when purchasing in the UAE.
Can foreign buyers actually own the properties they purchase?
The simple answer to the question is yes! As with any country, the real estate they buy has different regulations on the land, which is either Freehold or Leasehold land.
The majority of Dubai’s developments are constructed on Freehold land so the purchaser fully owns the property they buy. For any property, the buyer will be one of many owners in the building or community which make up the owner’s association. The owner’s association is responsible for finding a management company to take care of the common areas (lobby, gym, pool etc)
What advice would you give to first-time property buyers or investors looking to invest in Dubai?
The first and most important thing I would say is to try and find an agent that you can trust. This agent should have a full understanding of the Dubai real estate market, with a high knowledge of current developments and locations which will perfectly suit your requirements. Just because you may know somebody who has purchased in an area you may like the sound of, that particular project may not be suitable to your long-term goals of purchasing so that’s why it is very important to find a trustworthy broker who can fully understand what you require.
Name three areas in the UAE which are particularly good for investment.
My first area of choice to discuss for good investment is Dubai South. This location has a very specific government plan for its growth. It is ideally located next to the Al Maktoum Airport which I have briefly mentioned above and is set to have a huge expansion making it the largest airport in the world.
The particular effect this will have on the community is the number of jobs in the area it will create. There will be a large number of people who will need to move closer to avoid commuting so more developers are launching new projects there. So, it really is a good time to purchase now before the prices rise drastically.
The second location I want to mention is Ras Al Khaimah, specifically Al Marjan Island. This is an island which is 2.7 Million square meters in size and is located near Al Hamra. This island is the location of a $3.9 Billion development of the ultra-luxurious Wynn Gaming resort.
Recently all the top hotel and restaurant brands have launched projects in the surrounding plots adding to the appeal of tourists and investment opportunities.
Arabian Business recently produced an article regarding the expected capital growth of clients’ purchases in this location, it is expected by the time the casino opens in January 2027 the surrounding developments will have a capital appreciation of approximately 50%. This is a huge number, but this figure hasn’t just been plucked out of the air. It is based on the knowledge of the continued success of new launches and the known fact that this will be a tourist hot spot for people from all around the world.
The third location I would highly recommend people looking at is Dubai Marina. Now this is a very well-developed community already and this location continues to be the best area for investment in Dubai year on year.
This is because of the sheer number of tourists who prefer to stay in this location when visiting Dubai. There is still a possibility of new developments as well as purchasing something already completed, you are guaranteed to get a very reasonable ROI (return on investment) of approximately 6.7%. With new developments, you can also expect to see very good capital appreciation. The area of Dubai Marina is surrounded by around 13,000 restaurants and café which is an important factor to consider when looking at investment.
What is your 5-year plan as a broker?
As I reflect on my career and consider my future in this industry, my ambition is to continuously improve as a broker. I aim to expand my network and eventually lead my own team of brokers, collaborating closely with a developer. Along the way, I aspire to successfully sell numerous properties for my clients.
If you would like to speak with Chris about buying or selling property in Dubai, you can contact him at; Chris@obg.ae or by phone at +971528099579
