Atif Rahman
Founder & Chairman
ORO24 Real Estate Development
“If you invest in good real estate at the right price you will always make a profit”
“Dubai does not stop; it continues to add more reasons to make it more attractive, more convenient, and more beautiful for people to come here”
“HH Sheikh Mohammed bin Rashid Al Maktoum has created the most attractive infrastructure in the world for people to live and do business from. He has always had people in his heart, innovation in his mind, vision in his eyes, and a smile on his face” –
Mr. Atif Rahman, Founder and Chairman of ORO24 Developments said to Business News Media Network.
The ORO24 real estate development leader shared with us in an interview about his insight, vision, and opinions about real estate, the future of his company, and Dubai.
Q-What UAE means to you and why you choose Dubai to be your next business approach?
I have travelled the world from east to west; and when I compare Dubai to the rest of the world, I firmly believe that there is no place like Dubai. This city is the most unique place that I have seen and it is not just because I love Dubai, I say that because it has the most attractive and ever improving infrastructure in the world. From a desert it has transformed into one of the best metropolis. In everything that Dubai does, you witness the welfare and happiness of its people. Every time there is an adversity or a crisis, Dubai – along with the UAE – is the first to bounce back. People should ask the question, why is that so and how? There are numerous bigger and older economies across the world with greater resources; but they struggle in crisis. However, Dubai with its matured and sensitive vision along with proactive measures always delivers in the times of crisis.
We must appreciate how the lockdown was handled along with the sanitization measures, highest per density tests, medical support, lowest mortality rate, highest recovery and fastest vaccination drive, which helped the city bounce back faster than the rest. The latest example is Expo 2020. While many countries have not even received the first dose of vaccination, Dubai has already crossed 95% vaccination enabling the staging of the biggest global show with success. Notice the traffic on the road, it has grown exponentially and the city is buzzing, and Dubai has well equipped infrastructure to handle it. The city is inviting and welcoming the whole world. In the current context, no other country or city had the capacity of holding the Expo 2020 amidst a pandemic.
Q-Why is Dubai real estate the most attractive opportunity for you?
Because of the hard and soft infrastructure Dubai has, it is Number # 1 in the world. The regulatory framework here protects everyone who is participating in trade. By rolling out trade liberalization & immigration reforms, the Government has attracted foreign investments at an accelerated pace. Backed by the innovative systems built on block-chain technology, the ease of acquiring real estate asset in Dubai is unparalleled. Government has also put strict monitoring and control measures for construction as well as transactions, making it technically and financially ultra-secure. At the same time, the city has continued adding several more attractions which act as a catalyst. All of these create a handsome track record while the future outlook remains bullish due to the visionary leadership. All of these combined together, make Dubai the most attractive hotspot in the world.
Q – During COVID19, market values went down between 25% to 30% depending on the location, thus, the question; how would you evaluate the market in the short term and the long term?
I call this a negative bubble, and the reason this happens is because in Dubai generally people start panicking whenever there is crisis. People think to themselves ‘I am an expat here, why would the government take care of me?’, but every time there has been a crisis, the government has come out with bigger, stronger support and care for all the people.
Around the globe, and in all the business verticals, such as automobiles, insurance, hospitality, FMCG, airlines, consumer durables, real estate and banking, every business goes through a cycle. In any business across the globe, if people panic, market faces a drop, but that isn’t an accurate picture. The impulsive reaction from the consumer creates that temporary downfall. Hence, with the slightest efforts from the Government, it is the fastest to pick up as well. We need to eradicate this way of thinking and that is possible if people look at the reality; the reality is that Dubai has the best and strongest infrastructure that exists, and we don’t need to panic. Of course there are areas where improvements can be made, but that goes for any city in the world. I feel there are great opportunities in improving Banking support for real estate, incentivizing affordable housing segment and supporting innovative real estate; and once attended it will further boost the sector.
When you mention the 25-30% drop in the real estate market, notice what happened in Q4 of 2020. We were still amid the pandemic, and the world did not know how they were going to handle the COVID-19 situation, but Dubai was already back, up and running and the asset values started appreciating again.
Q- Now this leads us to a question, do you think the real estate market will recover the drop? And what are your opinions regarding Dubai’s market in the near future?
It has already recovered, and I am extremely bullish that in the next 4 to 5 years to come, the upward trend will continue. Compared globally, Dubai is second to none, however the real estate prices are still below par leaving a massive opportunity of value appreciation. I think we need to stay relaxed and believe in the city of Dubai. For me, through the ability to bounce back swiftly, Dubai has won two world cups; one in the recovery post 2008 economic crisis and now in the COVID-19 Pandemic. You don’t doubt a football player who has won two world cups, you call him a “World Champion”.
Q- In that case, is it a great time for investors to invest in real estate right now because prices are good?
Absolutely right! In one of my speeches, I began talking about the John Harris Master plan based on which the city was built, and I spoke about the transition of the real estate industry which witnessed a historical transformation through introduction of freehold real estate laws at the beginning of this century. If you invested in real estate 20 years ago, it will be at least ten times in value today, which is almost 50% per annum. You have to give time for the real estate to appreciate and it unreasonable to expect increase in value immediately. That mind-set comes from the speculators who obviously are willing to take higher risks in expectation of immediate returns. However, if you are “investing” in real estate, my advice is to keep a 7 to 10 year horizon, and you will always make money. When you invest in stocks or commodities, you run higher risks or losses, while acquiring real estate, you are investing in an appreciating asset. Other investments can diminish, but real estate is an immovable asset. If you invest in good real estate at the right price you will always make a profit.
Q- The increased interest because of the Expo, do you think this will lead to over-supply?
We always like to talk about supply when it is never about supply, it is about creating demand. Dubai continues to create more and more demand for real estate. Why? Forget about the attributes historically associated with Dubai such as luxury, shopping, lifestyle, safety, etc., Dubai provides a comprehensive eco-system for its population and is one of the best in the world. The way the COVID-19 crisis was handled, proved to the world that even healthcare is one of the best in Dubai. Most importantly, how spontaneously the government is able to proactively command a crisis, control a crisis and then fix the crisis for everyone. I remember reading reports that said many people will leave Dubai, businesses will shut down etc. Look at the numbers today, you will see that the number of people coming to Dubai is higher than pre-pandemic era. In fact, people who left at the onset of Covid-19 wanted to come back to Dubai because the city was safest for its people. This suggests that more and more people will continue to shift their base to Dubai because you have everything that one can think of in terms of a convenient and a happy life. This surge in population will require more real estate; schools, hospitals, colleges, malls, residences and offices. This in turn will boost the demand. In my opinion, you should never predict the appreciation value or rate of appreciation of real estate, because no one can predict it. If I have to go by the opinions of financial experts, I would want to ask them all one question, ‘how many of them were predicting COVID-19 pandemic and the impact that it would have?’. No one saw it coming but it did happen and it is such an event that shut down the whole world. Before COVID-19, if you consulted experts, they would have advised that hospitality is a great investment, and airlines an amazing investment, but today It is a different story. The first city to wake up is Dubai. I think all this will continue to reinforce the belief of people in the city of Dubai. Dubai does not stop; it continues to add more reasons to make it more attractive, more convenient, and more beautiful for people to come here.
Q – So what is ORO24 and what is your vision behind this new venture of yours? -Do you plan to expand outside?
Dubai has been a city of inspiration for me and this city has given me everything I have. I wanted to come up with something unique and that’s how ORO24 happened. ORO is an Italian word and it means Gold. So ORO24 is from the city of gold offering 24 Carat Gold quality of real estate. It’s a unique combination of quality and convenience that I want to build under this brand. Its tech led for an unparalleled consumer experience and is forward integrated so that we will not only deliver unique real estate but also maintain them handsomely post-delivery. People invest their hard earn money in their dream home and I want to take their experience to another level. I have always looked at Real Estate through innovative lens; for me its not about the door but the world that lies behind the door, I want it to be the best.
Personally, Dubai is the best place in the world, and I am proud to be a Dubai born company, proud to be a resident of this country, and the company will always be headquartered in Dubai. We will be looking at real estate opportunities in Dubai in different areas and in different segments, and we are not just going to be limited to the affordable segments but I also want to venture into all other segments like luxury. I believe people have not tasted luxury yet, the real luxury. Generally, when you talk about luxury, it usually refers to marble flooring, wall paneling, chandeliers, etc., but it is rather about lifestyle. In my opinion, you deliver a lifestyle in real estate. Whether it is low, mid, or high income segments within the affordable category, or within the luxury segment, it is most important how you deliver the lifestyle to the consumer. In that area, I want to create a unique opportunity or unique offering of luxury in combination with the aspect of innovative real estate. I think we are still serving ‘gahwa’ and ‘karak’ in real estate and when there are cappuccinos and lattes that we can offer.
If right opportunities surface, I will definitely want to take the unique learnings from Dubai to the world.
Q- Now everyone is talking about sustainability and saving energy and their carbon footprint, and looking for a smart home, or smart utilities with 5g, everything will be changing and will you implement these changes in your projects/lifestyles?
Definitely, my vision behind this company is to build the most advanced, innovative, sustainable and tech-driven smart real estate. There will be numerous integrations with technology and artificial intelligence at every level of the business. However, in terms of sustainability and innovation, I will combine it with practicality; so what I intend to deliver is practical sustainability and practical innovation. Ideally I would like to deliver everything possible, but the capital expenditure of acquiring all these solutions might be very high and might not leave these real estate very affordable. We must find the equilibrium between what we want to achieve and practically what is realistic to achieve. Our dream is to deliver innovative, sustainable and commercially viable assets. One might create something which is critically acclaimed, but commercial success is equally important which happens when the product is affordable for its consumer segment. “Smart Real Estate” is not only about putting the smart switches, and operating the fridge and air-conditioning from the smartphone, but also about everything that goes into that home. Technology isn’t the only factor but also the space and the durability of the material, the sustainability of the material, how easy and cost effective it is to maintain, all these are important factors too. In this venture, I’m going to create a very unique combination of luxury, quality and convenience at unbeatable price. It’s a forward integrated business so what we are doing through this combination is solving the problem of asset maintenance. For example, you can give a very nice car to someone but maintenance of the car remains a key factor. I want to create a combination between delivery of good real estate, easy, cost effective and quality maintenance of the real estate. That is the vision.
Q – Is there any opportunity for investors/landowners to participate?
The doors are open for anyone to come and invest in good real estate opportunities and there are endless opportunities. I believe just like healthcare and education; real estate is a noble business. It is not about making money; it is about changing people’s lives, and in that process you make reasonable profit. I would not want to limit myself to one or two projects. I want to complete as many projects as possible, because we come with extensive experience along with clean intentions. If there is a genuinely interested investor, we would review the proposal and if it is a win-win, we would definitely consider it. We want to expand in Dubai, GCC and globally. I want people to know what Dubai real estate is and prove once again that it is indeed the best.
Q- Have you got any partners in this venture?
No, I don’t have any partner. However, I am a believer in inclusive approach in business. It not only strengthens the infrastructure but increases the capacity both in volume and quality. I have set up strategic partnerships with several organizations to boost the potential of ORO24. This includes some of the top industry specialists with extensive global experience. I will be announcing these unique collaborations before the end of the year.
Q – What is your message for the real estate sector?
I want to wish everyone in the real estate industry the very best. I want to remind everyone that we carry the responsibility of delivering people’s homes and we always must be willing and be ready to work hard with honesty. We must do our best to create the most amazing real estate we can. I believe when we talk about home, there is one word that always gets associated with it, “Dream”. So, it is a Dream Home for everyone; and everyone’s dream is to build their home. They give that responsibility to us to build their home. We must act as a custodian to deliver the best quality of real estate. Success or profit is just a by-product. With the right intentions and consumer sensitive approach you are guaranteed to make a profit. •
