Black Arrow Real Estate

Once again, we are witnessing a significant surge in property prices in Dubai. However, with good news comes its own set of challenges. We are already encountering issues with landlords failing to fulfill their commitments, and there is also an influx of new agents entering the Dubai property market. I must commend the Dubai Land Department and RERA for their swift actions in normalizing the market. The role of RERA in regulating brokers and providing them with training to enhance service standards cannot be understated. As a new investor, it is crucial to engage the services of a RERA-registered broker. Always verify their Broker ID card and check their company details on the Dubai Land website. Additionally, ensure that the person you are dealing with possesses extensive knowledge about the Dubai market. Most professional brokers specialize in specific areas, which grants them deep insights that benefit investors. RERA has recently introduced standardized forms that brokers complete ...

I walked out of the Lift as I luckily parked my car in the Basement of Emaar Sales Office in Dubai Downtown area. A gentleman walked up to me and my friend and asked me, "today is Saturday it looks like Emaar is looking for new staff, there are hundreds of people waiting outside to be interviewed". I looked at my friend and smiled, we explained him that the people outside are waiting to obtain tokens to purchase Emaar Properties new Launch. There were not hundreds but they were thousands of people outside Emaar Sales office in the hope of buying their new release. On Thursday people received a Text message from Emaar inviting them to buy the Properties they are about launch on Saturday 13th APR 2013. At the same time there were hundreds of people outside Emaar office in Downtown. It reminded me the period before the crisis in Dubai. I decided to visit the area a day before the launch on Friday just to see investors appetite for the Villas. I was actually quite amaz...

In 2008, we encountered a taxi driver who approached us seeking to rent an apartment. It was a challenging period for renters due to the soaring rental prices. The government's implementation of the "one villa one family" policy and the planned demolition of a section of Satwa added to the strain on the already limited supply of apartments in Dubai. Returning to the taxi driver's story, despite having a steady income, he faced great difficulty finding suitable accommodation. We informed him that an apartment would become available in three days. However, with nowhere else to go, the taxi driver shocked us by sleeping in his taxi outside our office for the entire three-day period, just to secure the apartment. This incident highlights the desperation of the situation. During that time, we frequently had landlords approaching us, requesting us to ask tenants to vacate their apartments at the end of their tenancy contracts. Rental prices were escalati...

I It has been some time since I last wrote about Dubai properties, and this in itself is evidence of the revived state of the Dubai property market. My increased engagement with customers further reinforces this observation. A few months ago, the Central Bank introduced a policy limiting expatriates in Dubai to obtain only a 50% Loan-to-Value (LTV) ratio for the properties they intended to purchase. This measure was implemented to prevent the property prices from spiraling out of control once again. However, a few weeks later, the Central Bank decided to reverse its decision, opening the doors for buyers on the sidelines to take advantage of unrestricted LTV ratios. It was announced that the Central Bank would review the situation after a period of 9 months. As a result, property prices have begun to rise once again. Concurrently, we have witnessed a substantial 40% increase in rents in Dubai's International City compared to the previous year. The property prices t...

A friend recently brought up the sudden surge in property prices in Dubai, expressing concerns about investing due to the rapid increase. It was a valid point, considering the influx of speculators aiming to capitalize on short-term gains. Indeed, the rise in property prices can be attributed to increased demand and reduced supply, which is a common factor behind price increases. However, it's important to scrutinize the market from a different perspective. While manipulating property prices may be relatively easy, the rental market presents a different story. Rental rates have also witnessed an upturn, and unlike property prices, the rental market is not easily manipulated. Rental demand can only grow with an increase in population, which is typically accompanied by economic growth. Another factor contributing to the rise in rental demand is the recent mandatory requirement set by RERA (Real Estate Regulatory Authority) for tenancy contracts to be registered through Ejari (For mor...

When it comes to building a property portfolio, one crucial factor stands out above all else: timing your entry into the market. Unfortunately, we cannot turn back time to purchase properties or investments that we know would have appreciated in value over the course of 10 or 20 years. Reflecting on some properties we sold in International City back in early 2006, it's surprising to see that their prices today are still lower than they were in that year. It's almost as if going back in time to acquire a property. However, this situation presents an excellent opportunity to construct a property portfolio with a small initial investment. Consider the following example of purchasing a studio apartment in International City, Dubai, using bank finance: Property Purchase Price: AED 250,000 Down Payment required by the Bank: AED 50,000 Bank and valuation charges: Approximately AED 5,000 Bank Loan: AED 200,000 In this scenario, a cash investment of AED 55,000 is require...

In Dubai, we handle numerous property rentals every month, and one common mistake we often observe is that investors tend to neglect the upkeep of their properties. Despite receiving rental income, many landlords are hesitant to invest in maintaining their properties, particularly in International City where apartments are often in poor condition. Fortunately, property maintenance in Dubai is relatively affordable. To illustrate, let's consider the example of several properties we manage in International City for our clients. These apartments are now 5-6 years old, and the construction materials used at that time were of mediocre quality. However, by simply replacing the floor and bathroom tiles, you can significantly enhance the value of your property. We have experienced firsthand that investing in these improvements never results in a loss. In fact, it greatly improves the rental and selling potential of these properties. From a financial standpoint, it makes per...