IMEX company presents on the Russian market residential and commercial real estate projects from the largest UAE developers: Damac, 32 Group, Saba, Tameer, IFA, KM properties, Al Seef, Diamond Investment, Deyaar, Vakson, Credo, Fortune Group, Trident. IMEX is the only official agent of EMAAR Properties in Russia.
The United Arab Emirates today is simply flooded with real estate agencies and independent brokers, despite tightening control by the authorities over the settlement of sales and the registration process. Today, only the lazy do not engage in real estate in the UAE. Everyone is ready to offer their services in its search, sale or purchase. However, why do we need an intermediary, we thought, if the doors of developers are always open for visitors and you can contact them directly? With this and other questions that interest our readers, we came to the managing partner of IMEX Real Estate Oleg Lavrik.
- Oleg, why, in your opinion, do people turn to intermediaries, wanting to buy or sell real estate, because information about developers and their properties is freely available, for example, on the Internet, and real estate companies do not hide it?
Indeed, no one hides the names of developers. Offering projects on the website of the company www. imexre.com, we always try to indicate who exactly is the developer of this or that object. It makes no sense to conceal something, because the client still receives the contract of sale from the general developer. We never deny our customers a request to get acquainted with the real estate of a company in their office. No one bothers anyone who wants to come, for example, to the NAKHEEL or EMAAR office to learn more about the facilities under construction, to consider their layouts in detail ... Sometimes, however, it comes to the ridiculous - some unreliable agents may present the developer's office as the office of their own company.
There was such a case when a buyer from Russia, who first arrived in the country and, in general, was not particularly dedicated to local sales, was shown the office of the mega-project DUBAILAND, apparently hoping to impress him with its scope, or the look of a living tiger behind a glass showcase. What the agent, representing a fairly respectable company, counted on, giving out the halls of the developer Dubai Holding for his own, is not clear. The buyer was impressed not so much by the trick as by the short-sightedness of the so-called seller. “The enemy must not be underestimated,” said Mao Zedong. I would add - you can’t think that the client is an enemy that is dumber than you. The buyer is a partner for long-term mutually beneficial cooperation.
The question is not a beautiful and large-scale presentation of the project, but the feasibility of investing in a specific building, land or house. There are many examples where a local developer runs a wide advertising campaign, organizes a smart presentation of a project, attracts foreign investors who suddenly two years later discover that the project is illiquid!
- You want to say that contacting the developer directly is not always beneficial, since you can get on an illiquid project?
I want to say something else. It is beneficial to contact the developer directly if you: firstly, know exactly which object and in which particular project you are interested; secondly, if what you need is available at the market value for today; thirdly, if you permanently reside in the Emirates, all the time "keep your finger on the pulse" and get timely offers from the developer. Plus, it is not advisable to directly contact also because the broker independently evaluates the best offers from several developers, and the offers that the developer offers in his office will be limited only by his projects.
- May I have a little more detail?
If very detailed, then the magazine is not enough. I will try to explain briefly. In fact, even flipping through your magazines with real estate offers, it’s quite difficult for a new person, or at least not living in this country, to find out who is the developer of a project, who is the developer of the property on it, and who is the broker . Add to this also advertising on the Internet, print media, offers from numerous agencies ... Before you part with the money, it is important for the investor to know what the purpose of buying real estate is for their own residence, income or subsequent resale. The location of the property, the schedule of payments, and the "name" of the builder also largely depend on this. Sometimes it is difficult for an investor to make a choice. This is where the broker you trust should help.
I want to dwell on another important point. Many mistakenly believe that if you contact the developer directly, it is always cheaper. In fact, it often turns out exactly the opposite. Take, for example, one of our offers: today, the floor of commercial real estate in the official sales office of the Dubai Pearl project costs 3,500 drx per sq. Foot. Despite the fact that at the moment there are no whole floors available, only certain offices are realized. And we at IMEX have for the sale of a couple of floors at 2156 drx per sq. (US $ 6317 per sq. M.).
- Is that possible?
I will explain. When the price was much lower than the current one, a customer bought this floor. Now he decided to resell it, with his small allowance. The only possible inconvenience when making a transaction with this commercial real estate is if in the first case the buyer makes the first payment in the amount of 10% of the total cost, then in the second case he will have to pay 20%, plus 4% for the renewal of property rights. But, in the end, the price is still lower than that of the developer.
It should not be disregarded that being an officially registered broker in the local market, each of the company's agents receives about two hundred or three hundred letters daily with real estate offers, announcements of preliminary sales, etc. from construction companies and other real estate agencies. Due to the numerous connections, we often receive information about an object long before its official presentation. Many things have to be "filtered" - this is our job. Sometimes a pre-sale offer (we’ll talk about this and other terms a little later) can be so interesting that we invest a check of our company in the quality of a down payment so that a client in Russia who trusts us can later buy this object at the lowest initial price.
- Does all of the above apply only to Dubai real estate, or does your company cover other emirates?
We are equally interested in attractive investment projects offered in different parts of the UAE. I have already said that now potential investors should pay special attention to the capital of the UAE - the city of Abu Dhabi. Our company is already working with Abu Dhab projects, and the prospects are quite tempting.
- According to estimates of world leading financial institutions, the emirate of Abu Dhabi is considered one of the best global real estate markets for investors. Question: why?
To begin with, Abu Dhabi is the federal capital of the UAE. In addition, this emirate occupies the largest part of the United Arab Emirates - 89% of the country. These facts, coupled with the growth of the economy of the Middle East and the ever-growing importance of this region at the global level, contribute to the fact that the demand for real estate in the residential and commercial sectors of the capital is growing rapidly.
The real estate and construction sectors in the UAE are the two leading determinants of the economy, which are projected to increase the comprehensive annual growth rate by 2010 by 24.4% and 29.6%, respectively. In addition, their contribution to the country's GDP by 2010 is expected to be 23%, compared with 16% in 2006. The contribution of the construction sector to Abu Dhabi's GDP in 2007 amounted to over 40 billion dirhams, and it is expected that in the future more than one trillion dirhams will be generated in it.
In addition, the development strategy chosen by the government of Abu Dhabi creates additional incentives for the continued growth of the emirate. It is stated that the goal of diversifying its economic base and moving away from dependence on the energy sector was the result of an increase in the flow of tourists, the emergence of new industries, utilities and other positive aspects created in the emirate. In September 2007, the government published the proposed Abu Dhabi development plans until 2030. The Abu Dhabi 2030 Plan: The Foundation of the City Structure is a comprehensive guide to transforming the capital of the emirate in the next 22 years. It stipulates clear recommendations on the use of the most effective normative and legislative acts and organizational structure, which will help in the management of urban development in the future and determine the government strategy for further sustainable development and growth.
Many of these plans become reality as the results of the construction of large facilities in Abu Dhabi take on increasingly clear lines, major construction contracts are concluded, and large-scale projects are announced. Among them, the emergence in the Middle East of the American Fund for the Support of Contemporary Art Solomon Guggenheim; a branch of the richest French museum - the Louvre, which knows no equal in variety and completeness of collections; theme parks of the Hollywood company Warner Brothers, Formula 1 races, the New York Film Academy (New York Film Academy) and the Cleveland clinic (Cleveland clinic).
Movement is also noticeable in the rental market of Abu Dhabi - prices for commercial and residential areas increased to 50% due to the fact that demand significantly exceeds supply. This fact contributed to an increase in the sales plan for construction in progress, in which the first investors were rewarded in 2007 with an increase in the cost of capital by 35-60%.
- Thanks for the conversation and clarification. We wish you success.
Why does it make sense for a client to contact a broker?
- Constant monitoring of real estate allows you to choose the best option for both the buyer and the investor.
- Constant market analysis and experience with developers, can reduce the risks associated with the construction period, changes in various conditions, which ultimately affects the success of the investment.
- The broker solves many issues on the practical implementation of transactions, such as legal formalities for organizing optimal investment schemes with opening offshore companies and bank accounts, and, if necessary, assistance in making payments. IMEX easily solves these and other issues with its own representative offices in Moscow and Dubai.
- The client does not bear additional costs. Based on the practice of IMEX, the client concludes all contracts directly and sees all the real numbers - what makes up the selling price. In initial sales, IMEX receives a commission percentage from the builder, that is, the price for the client does not change if he buys directly, or with the support of IMEX. Sometimes, knowing the situation on the market and the developer, IMEX specialists manage to get significantly better prices for their customers than those that the developer offers in the price list.
- IMEX, by working with the staff of developers, is trying to select offers for its customers that have just appeared on the market, in the so-called prelaunch stage. This allows you to enter the investment project at more favorable prices, and accordingly have better liquidity.
