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July 22, 2022

Local Knowledge, Global Gains – How Expat Investors Win in Their Own Backyard

Local Knowledge, Global Gains – How Expat Investors Win in Their Own Backyard

I’m Laila Janik, CEO of MYS Real Estate and a fellow expat, and I’ve seen expat investors leverage their on-the-ground insight to achieve exceptional results that foreign investors often can’t. Here’s how being local gives you a global edge in Dubai’s property game.

Spotting Neighborhood Potential First: Remember how up-and-coming Dubai Marina was 15 years ago? Those who bought early made a killing. As a local expat, you often catch wind of the “next big thing” in Dubai before it’s plastered in property reports. Maybe you drive by a construction site daily and notice a new mall or metro line is coming up – a signal that area will surge in popularity. Or you hear from a friend at Expo City that huge development is planned there, indicating future housing demand. By being here, you see growth catalysts early. You can snag a one-bedroom in an area like Dubai Creek Harbour or Mohammed Bin Rashid City before prices jump, because you’ve visited the site or seen the developer roadshows in town. A foreign investor might wait until the project is half complete and prices higher (or miss it entirely).

Your local “scoops” give you a head start. I’ve had expat clients buy in newly launched communities (like Town Square in 2017 when many overseas folks were skeptical) – they rented those units easily to other expats who love the concept, and now values have risen as Town Square became a thriving community. They essentially bought low thanks to early conviction from local exposure, and now reap the capital appreciation.

Understanding Tenant Mindset: Because you share culture and day-to-day experiences with many tenants, you can “market” your property better. You know what an expat tenant prioritizes: maybe it’s proximity to a school (you’ve heard parents in your office talk about school runs), or pet friendliness, or a vibrant nightlife nearby for young professionals. You can then choose a property or present it in listings highlighting those points. For example, as an expat you know summer heat is brutal – so you ensure your listing mentions “indoor kids play area and covered parking” for family renters (things a foreign investor might not even consider selling points). You know many new expats don’t ship furniture – so you offer your one-bed fully furnished to tap that market and charge a premium. Essentially, you can mold your investment strategy to fit the end-user, because you are the end-user in many ways or you know many of them personally.

This dramatically improves your occupancy and rental yields. Foreign investors often ask me “what do tenants want in Dubai?” – well, as an expat you already have half the answers instinctively.

Network & Word-of-Mouth: Being on-site means you can use word-of-mouth to your advantage. Maybe at a social gathering someone says they’re moving to Dubai and need a place – you happen to own one, bam, tenant acquired with no brokerage fee and likely a trustworthy connection. I’ve seen many expat investors find tenants through personal networks – it’s smoother and builds a good landlord-tenant rapport from day one (since a friend or colleague referred them). Likewise, you might learn of a good deal before it hits the market because a neighbor in your building tells you they’re relocating and selling their unit – you can directly negotiate, often at a better price, without competition. Being here physically and socially increases serendipitous opportunities. A foreign buyer usually has to go through formal channels and might miss these “insider” deals. Dubai is a city where connections often lead togreat opportunities – as an expat, you’re plugged into that, while a purely international investor is not.

Pulse on Market Shifts: You likely follow local news and notice economic changes: e.g., big companies moving regional HQs to Dubai (more housing demand coming), or new visa rules that make it easier for certain professionals to settle (e.g., remote work visas – more expats with moderate housing budgets arriving). You can anticipate the impact on rental demand in certain segments and adjust your investments accordingly. I had an expat client who read an article about a new free zone opening and expecting 50,000 new jobs – he immediately bought a one-bedroom near that free zone, predicting many of those employees would rent there. Sure enough, when it opened, he had a queue of interested renters, and rent prices in that area climbed. He acted on local intelligence quickly, something a foreign investor might hear only after the fact when prices already rose. Being on the ground gives you a faster reaction time to market signals – crucial in making profitable moves.

Empathy in Negotiation: One often overlooked advantage: when buying from or renting to other expats, there’s sometimes an empathetic bond that can actually help in negotiations. I’ve seen expat buyers strike a chord with expat sellers (“Our kids go to the same school? Small world!”) which made the process friendlier and sometimes even got them a slight price edge or favorable terms, just because the seller trusted them more or liked the idea of passing the home to someone similar. While one should keep business business, human nature does creep in.

Sellers and landlords are people, and if you as an expat connect better with them than an overseas counterparty, you might clinch deals more smoothly or get chosen as a tenant over others, etc. It’s a subtle edge, but real.

In sum, being an expat investor in Dubai means you’re playing on home turf. You have local knowledge, instincts, and relationships that give you a leg up in making savvy investment decisions and managing those investments effectively. You’re effectively an “insider trader” but in a totally legal way!

Fellow expats, if you’re not leveraging your Dubai know-how in your investments, let’s change that. Get in touch with me and we’ll map out how to use what (and who) you know to maximize your real estate returns. I love helping expats turn their day-to-day experiences into profit – whether it’s identifying a high-potential area you drive by, or using your network to source great deals or tenants. You have an edge here in Dubai – as an expat investor myself, I’ll help you sharpen and capitalize on it for truly global gains. 🌏🤝🏠

The visionary leader of MYS Real Estate - Her philosophy is simple: every client deserves innovative solutions, personal attention, and a partner committed to their success.
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