In general, the real estate market is one of low volatility, especially compared to equities and bonds. Therefore, it makes sense to look at investing in real estate as compares to other investment vehicles. In UAE, it has always been good to invest in real estate due to its favorable real estate policies and initiatives, but now it is even more attractive, more than ever.
Investment advisors used to say that if you have money and you are sure you wouldn’t need it for the next ten years, invest in stocks or save it in the form of bonds. The scenario has changed completely; now saving money means investment in real estate and that also in Dubai or Abu Dhabi, the two international investment hubs that produce high yield due to the peace and luxury in the UAE. Such a decision takes sound understanding of both in financial and real estate domains and brings financial planning and real estate consultancy together, where real estate cum financial advisors assisting investors in managing their valuable assets.
Believe you me that a good number of millennials do not know what a financial advisor does; they do know what a real estate consultant advises though. It is the job of a financial expert to give comprehensive financial services that include preparing recommendations based on the client's needs and desires, planning and managing investments and finances of their clients. Their advice must not follow any particular financial school of thought and must accord to the existing real estate scenario. A good financial advisor helps their client understand the need to achieve long-term goals and short-term financial objectives.
Similar are the responsibilities of good real estate developers. It's not (and should not be) about location and location only. They are the bridge between the investor and the construction and not only look after the structure, location, design, cost and functionality of the property, they also understand the best prevailing trends in real estate and must be able to advise the client on that. They have a keen eye for changing market conditions and can guide the clients accordingly; purchase, sale, rentals or any other real estate relate matters. The best aspect of their expertise is that they are able to analyze the needs and desires of their clients and can support them with good financial advice.
Investing in real estate takes a lot to be considered at the same time. One needs to think about how best the money can be utilized; what risks can be taken and which ones can be avoided or how to achieve investment targets remaining within the boundaries of the financial budget. Sounds unrealistic if two different advisors (financial and real estate) are hired for the same and even more unrealistic to make them agree on one point. Hence the need for experts with a diverse portfolio, having the expertise of both, additionally having a compassionate outlook towards the clients.
The need for real estate experts with a good understanding of financial advisory is growing with time. People are investing more and more in residential and commercial real estate and they need advisors who are socially responsible, financially apt and technically sound. The pandemic has led real estate developers and owners to adopt and implement new practices into work. This change is going to stay although it could seem to be at an initial stage for now.