Opolot makes waves in  Dubai property market

And every so often, some of those money chasers are from Uganda. 

Opolot moved to Dubai in June last year. He initially travelled there on a Visit Visa with the aim of putting one foot into the water to test it out.

If it proved too dangerous, he would walk away and come back home to his job with a major petroleum Distribution Company as general manager. But if it proved to be friendly waters, he would cast his nets and see what he caught.

“I had the craving to help people buy homes because I feel like helping a person in such an endeavor is more satisfying and rewarding,” he says. 

Understanding the Dubai property market
Opolot smelled the coffee and woke up. He chose Dubai after realizing that it is a global business hub.  

Dubai has thousands of multinational companies, which means there is a great deal of potential career growth and prospects for employment in the area, making it a great magnet for multitudes of professionals looking for progress. 

Other than the abundant employment opportunities in Dubai, the other critical reason Dubai has seen a flock of expats moving into the country is the relatively low taxes and competitive pay. 

“People here earn comparatively more than in most countries across the world while also paying very small taxes. This is very attractive indeed. And the more expatriates flock into the country, the more the demand for property. To say that the property business is booming in Dubai is an understatement,” says Opolot. 

These factors have contributed to Dubai’s status as a prime location for real estate investment. Real estate investors from across the world flock here constantly looking to diversify their portfolios, generate passive income, or take advantage of a growing market with strong fundamentals.

“Individuals who are UAE nationals only pay five percent individual tax, while the employer covers the other 12.5 percent contribution to social services. This is particularly appealing considering some of the high salaries on offer and can play a large part in people moving to Dubai,” Opolot says. 

Opolots role as a Dubai realtor
Opolot helps people buy, sell, or rent all sorts of housing and real estate. 

“I am a consultant in real estate. I help investors and prospective home owners make the right decisions when buying and selling their luxury dream homes and/or property investments,” Opolot says.

As a property consultant, Opolot specialises in primary and secondary real estate especially for luxury high-end clients. Most of these clients come from Saudi Arabia, Egypt, Qatar, India, China Russia, England and USA.

“I always guide my clients in making their investment decision because some of them come into the market without any knowledge of the landscape. So it is my duty to educate my client about the property market in Dubai so that they are able to make an informed decision in the end,” he says. 

After understanding the client’s dreams, interests and desires, Opolot guides them all the way from the time they mention that they are buying or selling a property until they sign the final sales or purchase agreement.

After the deal is done, Opolot makes a follow up call or as many as necessary to make sure everything is as they imagined it. This is what differentiates a realtor from a broker. 

“I understand the gravity of the amount of money involved in these purchases. Some of this, is money someone has saved for a lifetime and they want to see it make a difference in their lives. This is not a market where agents make a quick commission and move on; it is a market that requires expertise, honesty and caution,” Opolot says. 

Dubai property vs Ugandan property
Of the many clients that Opolot is currently helping, two of them are Ugandan. They are not his first nor his last. According to Opolot, more and more Ugandans are getting to understand why investing in Dubai property is in many ways better than investing in Ugandan property. 

He says there are several reasons why he would strongly advise Ugandan investors to buy property in Dubai instead of using the money to build a rental property in Uganda.

“You would rather buy a studio apartment in Dubai than owning a rental property of the same amount in Uganda,” Opolot says.

Why Dubai
Higher potential rental income.
Dubai has a strong rental market, with high occupancy rates and rental yields that are generally higher compared to many other markets around the world.

This means that an investor could potentially earn higher rental income by investing in a studio apartment in Dubai than they would through building a rental property in Uganda.

Greater capital appreciation
 Dubai’s real estate market has a history of strong capital appreciation, which means that property values typically increase over time. This provides an opportunity for investors to grow their wealth through capital gains.

Political stability
 Dubia is a politically stable country, which means that investors can expect a low risk of political upheaval or instability that could negatively impact their investment. This is not always the case in Uganda, where political risks can be higher.

Ease of ownership and management
Buying a studio apartment in Dubai can be relatively easy and straightforward, with well-established ownership laws that protect the rights of investors.

Property management services are also widely available, which makes it easy for investors to manage their investments, even if they are based outside of Dubai.

Access to an international market
Investing in Dubai provides an opportunity for Ugandan investors to access an international market that has a strong reputation for quality and reliability. This can open up new avenues for investment and help diversify an investor’s portfolio. 

Opolot says that the biggest percentage of Ugandans buying property in Dubai are buying studio apartments in downtown Dubai which they rent out. 

A studio apartment (muzigo) in Dubai costs between Shs400m and Shs700m. Opolot notes that while it looks expensive, the return on investment is worth it.

“This kind of investment will give you a capital appreciation of 20 percent to 30 percent in a year and six months, a minimum of about six percent return on investment and all these depend on other aspects such as property type, size and location among others,” Opolot says.

Opolot says that on average, annual income from a studio apartment is around $9500 while a holiday home should bring in about $18,000.

“Dubai has great investment and end-user options available for investors, with an easy acquisition process to the extent that one can own an apartment by just a click of a button without travelling back and forth to Dubai. The industry here is that streamlined,” he says. 

Golden Visa
Whenever you are planning to buy a property in Dubai, the Government of United Arab Emirates gives incentives such as Golden Visa which he suggest Ugandans to keep in mind.

Avoid scammers
He is quick to add that even with the transparency in the market, it is possible to be scammed while buying property in Dubai. 

“To avoid getting scammed while investing in Dubai, it is crucial to do your due diligence and take the time to research as much as possible before committing to any sale. It is also essential to deal with trusted and reputed real estate developers and agents who have a good track record of providing reliable services and delivering high-quality properties,” Opolot says.

He adds, “In Dubai, real estate scams can take various forms; some examples include, off-plan sales scams, fake property rental deals, and property flipping schemes that promise unrealistic returns.

Therefore, it is essential to verify the legitimacy of the project and developer, check property history and documentation, understand the market trends and prices, and hire a licensed real estate agent or legal advisor to guide you in the process.”

Helping Ugandans buy property in Dubai
Opolot is in the process of setting up an office in Kampala. He intends it to be a place where prospective buyers can go instead of shouldering the cost of travelling to Dubai just to ask the right questions.

Cost 
Investing in Dubai provides an opportunity for Ugandan investors to access an international market that has a strong reputation for quality and reliability. This can open up new avenues for investment and help diversify an investor’s portfolio. 

Opolot says that the biggest percentage of Ugandans buying property in Dubai are buying studio apartments in downtown Dubai which they rent out. 

A studio apartment (muzigo) in Dubai costs between Shs400m and Shs700m. Opolot notes that while it looks expensive, the return on investment is worth it.

Caution
To avoid getting scammed while investing in Dubai, it is crucial to do your due diligence and take the time to research as much as possible before committing to any sale.

It is also essential to deal with trusted and reputed real estate developers and agents who have a good track record of providing reliable services and delivering high-quality properties,” says Steven Opolot, a realtor in Dubai.