INTEREST OF RUSSIAN-SPEAKING INVESTORS IN PURCHASE OF LAND PLOTS IN THE UAE ARE DAYING FROM A DAY. TOGETHER WITH IT, PRICES AND RETURNS ON INVESTMENTS GROW. ABOUT THE LAND MARKET SITUATION IN THE UAE, WE ASKED TO TELL THE LAWYER, ALMAKO GENERAL DIRECTOR, MAYA HASANOVA, who oversees the issues of land transactions in Moscow.
Maya, has investor interest in land become relatively recent?
There has always been interest. It's just that the land market has a different order of prices than the residential and commercial real estate market. Many investors have the means to purchase an apartment, villa, floor. But the purchase of land requires a more serious investment.
However, now Russian-speaking buyers are increasingly requesting land ...
Many investors have already checked the local market and began to place large investments here. The amounts of returns on them are appropriate: land prices are growing more dynamically than real estate. For example, at the end of 2007, we bought land for investors at 72.5 dirhams per square meter. foot. Now these sites are for sale at 200 dirhams per square meter. foot.
That is, the land market - for large players?
By and large this is so. But there is one good point related to payment schedules for land plots: they do not need to pay 100% at a time. The first installment is usually 5-10% of the cost. Six months usually pass between the first and second installments, the third payment, for example, must be made in 8 months. If the investor has an initial capital, he can invest it in the land before the second installment and get a high profit. If there are funds to pay contributions, it is better to defer the sale.
What interesting offers are there in the UAE land market today?
The number of land in the primary market in Dubai is small. Of course, all Dubai lands are very expensive. For example, in the Dubai Marina area, land is now offered at 300 drx per sq. Foot.
In my opinion, the emirate of Ras al-Kheim is now of interest. Our company has a number of beneficial contracts that we have concluded for our investors on the Al Marjan Island project. This project includes a group of alluvial islands with a total area of 2.7 million square meters. feet that will become the center of entertainment and recreation of the UAE. Al Marjan Island is also a free economic zone, which adds to the investment attractiveness of the project.
Investing in Al Marjan Island is a win-win: there is a real prospect of rising prices and development, so we are trying to buy land for our customers before they go on public sale. For example, in January, we bought land for housing here for 80 drh per sq. Foot and below. By May, prices reached 160-180 drh per sq. Foot. Prices for land for the construction of hotels are much higher. Such growth in just 3 months brings tangible benefits to our customers.
What is the status of these lands?
We work only with lands that have the status of "freehold".
What is the land registration scheme? Who is the guarantor?
The scheme is almost the same as with real estate. Initially, all lands belong to the state, to some state structure. They are administered by the Land Use Department of the Emirate, which owns the land. As with real estate transactions, a reservation contract is initially drawn up. All transfers of ownership are registered with the Land Department. If the apartment can be re-registered with the developer, then the land - only in the department. The client can make a request to government agencies on the cadastral number of the site and get complete information on it.
Is it obligatory for an investor to become a developer of his own land?
No, not at all necessary. A successful development requires good support from the local company or the general developer of the project. If a person doubts whether to become an investor or a developer, we recommend that you simply invest in buying a site.
But for this you need to keep abreast so as not to miss the best offers ...
Therefore, we provide our customers with a full range of services. Our company works for the future - we select the best offers for our investors, and then we find good buyers for objects - land and real estate. We work with both Russian and foreign investors, manage investment portfolios of clients, and provide full legal support for transactions.
If you are serious about placing large investments and making good profits, please contact us by phone: +7 9260705920 (Moscow),
+971 50 146 17 82 (Dubai),
e-mail: [email protected],
www.almakodubai.com.
