Dubai remains one of the most attractive and sought-after housing markets in the world.

VIP REAL, which owns several brands and is co-owned by Aleksandrs Cikunovs
and Lara Batova, has a history spanning two decades. For many years, this
company specialized in luxury real estate in Jurmala and the center of Riga.
Cooperation with real estate buyers and sellers from Latvia, Lithuania,
Estonia, Ukraine, Germany, Israel, Poland, China, Kazakhstan, Uzbekistan,
Armenia, Azerbaijan, Georgia, the United Kingdom, and Russia has enabled the
company to conduct over a thousand transactions. With this successful business,
VIP REAL has earned a good reputation in Latvia. And since last year, its
portfolio has been supplemented with foreign deals in Dubai (UAE), where
Aleksandrs Cikunovs and Lara Batova have opened the joint venture AG VIP REAL
Estate.
"The Dubai real estate market is an exciting challenge that allowed us
to take our business to a new level and provided invaluable international
experience. Today, our office in Dubai, located on the 39th floor of a
skyscraper, employs five people. In just the first third of 2024, AG VIP REAL
Estate has completed ten property sales transactions in Dubai worth hundreds of
thousands of dollars, in some cases exceeding the million-dollar mark,"
shares Lara Batova with good news. She is in a great mood: "We have never
regretted the decision to open a representative office in Dubai and work there
for a moment. This city has always been and remains one of the most
technologically advanced places in the world and continues to attract buyers
from around the globe. Just in the first quarter of 2024 alone, the population
of the Emirate of Dubai has officially increased by more than 25,000
people!"
During our time working in the UAE, we have managed to integrate into the
local market. AG VIP REAL Estate has entered into cooperation agreements with
several dozen leading property developers in this country. Some of them, such
as Meeras, offer several complexes and hundreds of apartments for sale, while
others, like Sobha Realty, offer several thousand properties. We are constantly
expanding our partner base, visiting new projects weekly and signing
cooperation agreements with their developers. However, we do this selectively!
There are more than a hundred developers in Dubai, but in our opinion, not all
of them will be highly liquid in the future. This is an important aspect for
those who buy property not for personal living, when the decision can be made
on the principle of "I like it, and that's it," but for investment
and rental income purposes.
"In Dubai, we are actively developing two directions. The first is
intermediary services, that is, we help our clients navigate the vast and
diverse market of new projects and find real gems among them. The second area
is resale. In the real estate sector, this term is used by investors to
describe the process of buying, renovating, and selling property to make a
profit. In this case, it is about housing either on the secondary market or in
new buildings with very modest basic finishes. We modernize or completely
renovate them, and after the work is completed, we put the apartments up for
sale," joins the conversation Aleksandrs Cikunovs. "After a year and
a half of diligent daily work in Dubai, we are convinced that projects in this
market are very different from each other. If someone thinks that by purchasing
any residential property in this UAE emirate, the value of your property will
sharply increase, I will disappoint you — unfortunately, this is not the case.
To make the right choice, you need to consult with professionals. It is crucial
to clearly understand what is worth taking and what is better to refuse, even
if the complex's advertisement promises a rapid cosmic price increase or a 15%
annual return from renting out the property.
"In our practice, we have not yet encountered such profitability
figures," honestly warns Lara Batova. "In reality, after paying taxes
in Dubai, one can expect a 7-9% annual return. However, this is still
significantly more than in Latvia, where a 3-4% annual return from elite
property is considered a great success. At VIP REAL, we care about our
reputation, so we are always honest and open with our clients. When choosing
properties, we are guided by market realities, not fantasies, and we do not
promise anyone castles in the air.
For information: in Dubai, property purchase by foreigners is not allowed
everywhere but only in so-called freehold zones. By purchasing a property worth
at least $250,000, a non-resident can obtain a visa valid for up to two years.
If the budget exceeds $545,000, a so-called golden visa is issued, allowing one
to stay in the UAE for ten years.
Brokerage practice in Dubai is licensed. To start working, we registered,
passed an exam, and received a certificate. As brokers, we sign cooperation
agreements with both the seller (contract A) and the buyer (contract B). Each
party's commission is 2%, so the total amount does not exceed 4%. This is the
standard for all market participants. In the UAE, everything happens officially
and transparently. There are optimization opportunities, but they are rarely
used. The purchase contract text (contract F) in Dubai is quite unified,
allowing only minimal changes. Everything is signed electronically. It should
be noted that in Dubai, unlike Latvia, it is partially allowed to use cash in
real estate transactions. It is also possible to pay part of the commission to
intermediaries, but not more than 50,000 AED (about 12,500 euros). All
contracts in this country are registered in a special register. The state fee
for registering a housing transaction in Dubai is 4%. Transactions are
conducted quite quickly and largely depend only on how quickly the developer
gives permission for the purchase. This usually takes from 3 to 10 days. The
re-registration of property rights takes place within 30 minutes after signing
at the notary's office.
"The prospects for the Dubai real estate market remain convincing and
clear: this emirate has a long-term development program until 2040. We hope
that thanks to our hard work, AG VIP REAL Estate's positions in this market
will continue to strengthen: we have certain ambitions. And it is very
important that now we can share our experience of moving to Dubai with foreign
buyers, thereby facilitating their first steps in the UAE. However, while
working there, we do not forget about our native Latvian market; it is still
our base," Aleksandrs Cikunovs returns to the topic of his business's
Latvian direction. "The main office of VIP REAL successfully operates and
will continue to operate in Jurmala, at Jomas Street 85. During our absence,
our reliable partner and very experienced specialist in the Latvian real estate
market, Ilvars Viņķis, as well as CEO Julia Pedane, maintain the company's
stable positions. Currently, more than 2000 properties from the primary and
secondary markets of Jurmala, Riga, and its surroundings are presented on the
website vipreal.lv. We believe that the negative processes observed in the
Latvian real estate market over the past couple of years are disappearing, and
a bit more optimism is beginning to appear in the market, which will be
reflected in increased buyer activity," smiles Lara Batova. "Latvian
colleagues jokingly ask when we will bring sheikhs as buyers," smiles Lara
Batova. "We think it will take some more time. As we can see, attempts are
already being made in Latvia to attract investors from the UAE, so we may be
next. (Smiles.) Currently, we are using our professional Latvian business
experience in Dubai and beginning to implement the technological knowledge we
have gained in the UAE in Latvia to successfully develop both directions!