Dubai real estate has moved past severe cyclicality, says fäm Properties CEO

Summary

In this 'Situation Today' podcast, Gareth Vel interviews Farz Al Madi, CEO of Fam Properties, the largest brokerage in Dubai. Al Madi discusses the company's tech-driven approach, including the transparent DXP Interact platform, and shares his journey from retail to real estate. He highlights the importance of market transparency, collaboration with government entities, and the future vision for Fam Properties, which includes expansion and enhancing client services across various real estate verticals.

Takeaways

• 🏢 Farz Al Madi is the founder and CEO of Fam Properties, the largest brokerage company in Dubai with 26 branches and over 650 real estate agents.
• 💡 Fam Properties is known for its technological innovation, particularly the 'DXP Interact' platform, which enhances market transparency by showing transaction history for rent and sales.
• 🌐 Al Madi's vision for scaling the company involves not just being the largest in Dubai, but also expanding to other regions such as Saudi Arabia and Abu Dhabi.
• 🤝 The company has a strong collaborative relationship with the Dubai government, particularly the Dubai Land Department, to improve the real estate market for all stakeholders.
• 📈 Al Madi believes Dubai's real estate market has moved beyond severe cyclicality due to its global positioning and the city's ability to attract new residents and foreign investors.
• 📊 The implementation of stricter regulations by the Dubai government, such as advertising permits, has significantly improved the transparency and accuracy of property listings.
• 🏗️ Despite concerns about oversupply in the off-plan market, Al Madi sees sustainable demand for properties in Dubai, driven by the city's growth and attractiveness to investors.
• 💼 Al Madi's entrepreneurial journey began with humble beginnings in retail, transitioning to real estate during the financial crisis, and ultimately founding Fam Properties in 2009.
• 📚 He has authored a book aimed at educating investors about best practices in real estate investment, emphasizing the importance of understanding the market and making informed decisions.
• 🔑 Al Madi emphasizes the importance of ethical business practices, particularly in relation to developers and real estate agents, to ensure long-term relationships and trust with investors.
• 🌟 The success of Fam Properties is attributed to a combination of strategic risk-taking, leveraging technology, and a commitment to transparency and ethical business practices.

Q & A

What is the primary business of Farz Al Madi's company, Fam Properties?

Fam Properties is a brokerage company, which is the largest of its kind in Dubai with 26 branches and around 650 real estate agents, focusing on providing transparency in the market through their platform, DXP Interact.

How did Farz Al Madi's journey in the real estate industry begin?

Farz Al Madi started in the real estate industry after working in a retail shop selling clothes. He took a 25-day vacation to try real estate, liked it, and then resigned from his retail job to fully commit to the real estate industry, founding Fam Properties in 2009 during the peak of the real estate crisis.

What is DXP Interact and how does it contribute to the real estate market in Dubai?

DXP Interact is a platform developed by Fam Properties that enhances market transparency by showing all transaction history for rent and sales, allowing anyone to find out how much any property was sold or rented for in Dubai.

What was the motivation behind Farz Al Madi writing a book about real estate investment?

Farz Al Madi wrote a book to give back to Dubai, sharing his knowledge and experience in real estate to help investors make informed decisions and avoid common pitfalls in the market.

How does Farz Al Madi view the current state of the Dubai real estate market?

He believes that Dubai has passed the stage of severe cyclicality and has a strong global positioning. He is concerned about the oversupply of off-plan properties but sees the demand as healthy and sustainable.

What is the role of the Dubai government in the development of DXP Interact?

The Dubai government, particularly the Dubai Land Department, supported the development of DXP Interact by sharing public data and collaborating with Fam Properties to create a more transparent and attractive market for foreign investment.

What changes did the Dubai government implement to improve the real estate market?

The Dubai government introduced stricter regulations for advertising permits, which resulted in the removal of a significant number of fake listings, leading to a more transparent and genuine property market.

How does the improved transparency in the Dubai real estate market affect various stakeholders?

The improved transparency benefits sellers by reflecting real prices, buyers by saving time and avoiding false leads, and real estate brokers by raising the entry barrier and encouraging professionalism.

What is the long-term vision for Fam Properties according to Farz Al Madi?

The long-term vision for Fam Properties includes scaling up and capturing more market share in Dubai, as well as exploring opportunities in Saudi Arabia and Abu Dhabi, while also enhancing the value offered to clients through various subsidiaries.

What are some of the challenges Farz Al Madi faced when introducing the concept of data transparency in the real estate market?

Initially, there was resistance from real estate agents who were used to selective reporting of transaction data to attract leads. It was a long and challenging journey to convince the market of the benefits of transparency and data-driven decision-making.