Business

Want to Buy Property in the UAE? Here’s What You Need to Know

Published

3 months ago

July 12, 2025

admin

DUBAI, July 12: Young professionals earning between AED 10,000 and AED 15,000 per month are being advised to allocate 20% to 30% of their income toward savings if they plan to invest in real estate. Property experts say disciplined financial planning—combined with gradual salary increases—can help prospective buyers accumulate enough for a down payment within three to five years.

“For properties priced between AED 600,000 and AED 900,000, buyers would typically need to save AED 90,000 to AED 180,000 for a 15% to 20% down payment,” said Adriano Vichi, co-founder of Monopoly Properties AVS. “With consistent monthly savings of AED 2,000 to AED 4,500 and prudent budgeting, this goal is achievable within three to five years.”

Real Estate Isn’t Just for the Wealthy

Vichi emphasized that real estate investment is no longer exclusive to high-income earners. “With the right strategy—understanding the market, selecting locations aligned with budget and expected returns, and timing entry—individuals with moderate incomes can also step into property ownership and start building long-term wealth,” he said.

For early-career professionals, the idea of investing in real estate might seem daunting. However, thanks to innovations like tokenisation and fractional ownership, the barrier to entry is significantly lower today, enabling more people to participate in the property market.

Breaking Traditional Barriers

Previously, financial institutions often required a minimum of six months’ salary history and a stable income to approve mortgage applications—making early investment difficult for newcomers to the workforce. But now, real estate tokenisation offers a new avenue. Ayman Youssef, Managing Director at Coldwell Banker UAE, explained that young professionals and even recent graduates can invest through fractional ownership with as little as AED 2,000.

Tokenisation involves converting the value of a physical property into digital “tokens” that are then bought and sold via blockchain—a secure and transparent digital ledger shared across a computer network.

Where Are the Investment Hotspots?

When it comes to where to invest, Youssef points to Dubai South, citing its proximity to the upcoming Al Maktoum International Airport. “The airport’s expansion is expected to drive strong demand for residential, commercial, and retail space,” he said.

Another promising area is Town Square, known for its master-planned communities and attractive price points. Planned connectivity improvements to Sheikh Zayed Road are expected to boost demand and raise property values in the future.

Don’t Overlook the Hidden Costs

Vijay Valecha, Chief Investment Officer at Century Financial, cautioned young investors not to underestimate the true cost of homeownership. “Many overlook recurring expenses such as insurance, maintenance, and utility bills, which can accumulate significantly,” he said. “It’s wise to build a solid financial foundation before entering the property market.”

He also stressed the importance of having an emergency fund. “Given that many young investors are in their first job, creating a financial safety net is essential,” Valecha said. “Ideally, they should save the equivalent of six months of living expenses in a liquid account to cover unforeseen setbacks, such as job loss.”

Valecha suggests that new earners structure their investment portfolios with a diversified mix—70% in equities, 20% in bonds, and 10% in real estate—adjusted based on individual risk tolerance and financial goals.

Investing from Just AED 500

For those with limited capital, platforms like SmartCrowd and PRYPCO enable investments in Dubai properties for as little as AED 500 and AED 2,000 respectively. The concept has gained significant traction. According to PRYPCO founder Amira Sajwani, one tokenised property on the platform was fully funded within 24 hours by 224 investors, while a second property was sold out in under two minutes.

Proceed with Caution

However, not all experts are convinced about the long-term value of fractional ownership. Zsombor Szokol, co-founder of Monopoly Properties AVS, advises caution. “While these platforms offer easier access, they come with trade-offs: reduced control over the asset, limited liquidity, and often lower income returns compared to full ownership,” he said.

“For serious investors, traditional methods—through direct acquisition backed by market research—remain the most reliable way to build a solid real estate portfolio,” Szokol added.

Final Word: Strategy Matters

Whether to start small through tokenisation or save gradually for full property ownership is ultimately a personal decision. While entering the market early with modest sums may seem appealing, prospective investors should weigh the risks and long-term benefits.

Dubai is rapidly embracing real estate innovation. Earlier this year, the Dubai Land Department (DLD) launched its Real Estate Tokenisation Project, now in the pilot phase. The initiative aims to drive substantial growth in the sector, with projections estimating that tokenised real estate transactions could account for AED 60 billion—roughly 7% of all property transactions—by 2033.

Business

CAPT sets Oct 27 for price talks on Jaber Al-Ahmad entrances project

Published

7 hours ago

October 13, 2025

admin

KUWAIT CITY, Oct 13: The Central Agency for Public Tenders (CAPT) has approved the request of the Ministry of Public Works to set Oct 27 as the date for negotiating prices with the four companies bidding for the establishment of entrances and exits at Jaber Al-Ahmad City. CAPT decided during its meeting last Wednesday. All bidders have been required to include detailed price and quantity tables in their bids. The agency excluded two companies for not meeting the conditions and specifications, and the bidding process closed on Feb 18.

The project includes the establishment of entrances and exits in two locations in Jaber Al-Ahmad Residential City — one is the southern entrance and exit linking to Jahra Road, and the other is the eastern entrance and exit linking to Doha Road. It is worth noting that the ministry has been holding negotiation sessions with the winning companies to determine the best and most cost-effective bid.

By Mohammad Ghanem Al-Seyassah/Arab Times Staff

Business

Companies and funds can own real estate in Kuwait under strict controls

Published

9 hours ago

October 13, 2025

admin

KUWAIT CITY, Oct 13: As part of the State’s efforts to regulate the ownership of investment and commercial real estate and ensure balance between attracting foreign investment and preserving the privacy of the local market, Decree No. 195/2025 on the controls for real estate ownership by companies, real estate funds, and investment portfolios was issued. This is in implementation of the provisions of Decree-Law No. 74/1979 regulating real estate ownership by non-Kuwaitis. Article One of the decree, which was published in ‘Kuwait Al-Youm’ recently, stipulates that subject to the provisions of the aforementioned law, companies with non-Kuwaiti partners and listed on licensed stock exchanges in Kuwait, as well as real estate funds and investment portfolios licensed by the competent authorities, may own real estate within the country, subject to specific controls. The decree indicates that one of the basic conditions is that the purpose of the company, fund or portfolio must include dealing in real estate.

It prohibits any form of dealing in real estate, plots or land designated for private housing in any location or within any project, in a move aimed at protecting the residential character and preventing speculation in this vital sector. Article Two of the decree clarifies that its provisions do not prejudice the right of entities subject to the supervision of the Central Bank of Kuwait or others to own real estate in accordance with the law. It affirmed that citizens of the Gulf Cooperation Council (GCC) countries shall continue to be treated the same as Kuwaitis regarding ownership of land and built property in the State of Kuwait. Article Three states that the ministers—each within their respective jurisdiction—shall be responsible for implementing the provisions of the decree, which shall take effect from the date of its publication in the official gazette.

By Marwa Al-Bahrawi Al-Seyassah/Arab Times Staff

Business

Factors behind the reversal of losses and profitability

Published

1 day ago

October 12, 2025

admin

KUWAIT CITY, Oct 12: Kuwait Integrated Petroleum Industries Company (KIPIC) aims to raise its profits for fiscal 2025/2026 by increasing its sales in local and international markets, which have been robust since the beginning of the year, say reliable sources. Sources pointed out that KIPIC recovered from the losses it suffered in previous years through the growth of its net profits, which amounted to about KD52.2 million in the 2024/2025 budget. They cited five main factors behind this growth.

First is the increase in the refining capacity of Zour Refinery, which reached 615,000 barrels per day in May 2024, ranking seventh globally in terms of production quantities. They explained that the refining capacity of the refinery in the years prior to its operational opening ranged between 205,000 and 410,000 barrels per day. The second factor behind KIPIC’s profit growth over the past year is the commencement of the merger of oil companies, particularly the merger of KIPIC into the Kuwait National Petroleum Company (KNPC), to shake off the losses.

The third factor is the result of the implementation of the spending rationalization policy pursued by the CEO of KNPC, who also serves as the acting CEO of KIPIC, Wadha Al-Khatib. The KNPC spending rationalization committee implemented spending rationalization last year, achieving financial savings for KIPIC estimated at KD27 million through this approach. Sources explained that the implementation of rationalization coincided with the provision of better products. The fourth factor is the focus on stimulating KIPIC’s sales in global markets by opening new markets. In the first half of 2025, the company was able to expand its sales of sulfur and diesel, in addition to producing the best type of low-sulfur jet fuel, and then exporting all of its products that comply with international requirements.

The fifth factor is the company’s interest in digital transformation, focusing on developing all aspects related to global technologies, including artificial intelligence, as these technologies are extremely useful in detecting and anticipating errors before they occur, which contributes to stable production. Sources added that there are other important factors behind KIPIC’s profitability, such as the signing of numerous contracts with international companies specializing in smart energy, renewing contracts with the largest global platforms related to technological development in the field of oil refining, and strengthening relationships with major refining companies to mutually benefit from each other’s expertise.

By Najeh Bilal Al-Seyassah/Arab Times Staff