The New Eldorado of Romanian Businessmen: Real Estate in Dubai

Buying a property in Dubai has become a new trend among Romanians. The first were the stars, spearheaded by Cătălin Botezatu, but now the process has been 'democratised'. The explanation would lie in two essential things: the advantages offered in Dubai and the deepening crisis in Romania.

If you look at those who already have something in Dubai, everything is just milk and honey, so we took advantage of the fact that the managers of the Platinum Square Real Estate agency in Dubai are preparing an event full of offers in Bucharest, so that we could find out the bare truth.

"In Dubai there is already a very developed community of Romanians. In the last year especially, we have noticed a constant demand for the purchase of properties. The interest of Romanian investors in the real estate market in Dubai is supported, first of all, by the extremely easy and transparent purchase process," Marwan Younes, managing partner of Platinum Square Real Estate, told us.

In short, the biggest advantage of the real estate market in Dubai remains the fact that there are no property taxes here. There is only an annual maintenance fee (calculated per square metre). And in terms of commission, there is only a percentage of 4% of the real estate transaction, paid only once, to the State.

Residency, a benefit

The documents are very simple: you only need a passport, a phone number, an e-mail address and the necessary amount that covers either the advance of the property or the full cost. As you become a proprietor, you can also obtain residency.

"To be a resident in Dubai, you have two options: the first would be to get a job somewhere or have your own company, and the second to buy a property, an apartment, which at the moment is over 750,000 dirhams, the equivalent of about 170,000 euros. The apartment must be paid for in full, then a fee of 4,000 euros must be paid to the state, and the person applying for residency must stay for 4 uninterrupted weeks in Dubai. These would be the procedures for obtaining residency," Fady Friberg, managing partner of Platinum Square Real Estate, also declares.

Bureaucracy is non-existent and there is no need for the physical presence of the investor, everything is taken care of by the real estate agency. Moreover, the market conditions are optimal for all types of investors, not just those interested in luxury properties, emphasises Younes. The two agree on one more thing: Dubai, according to Interpol data, is one of the safest cities in the world.

Or some kind of business

There is another category of investors: those who rent out their properties, a high-yield business, above similar values in expensive cities like London or New York. Then there is another opportunity, hotel rooms. "In Dubai you can buy a fraction (a quarter of a hotel room) for 120,000 euros. Every year, for 10 years, you receive 7% net of the invested money, which means 70% depreciation, regardless of the occupancy of the respective room," explained Fady Friberg. All these types of offers from Dubai were showcased at the Hotel Marmorosch, where the Emaar Property Show Bucharest was held.

The Romanian nucleus in Dubai

The Romanian appetite was quickly noticed, so the opportunities are coming to Bucharest. Because Romanians, even those with medium-sized businesses, are terrified of inflation, ROBOR and the rapid increase in prices, the event could be a chance to take shelter through long-term investments.