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Hungarian entrepreneur Tamas Bencsik has been in the UAE for the past three years and while he owns a few properties, he also rents a four-bedroom townhouse for his family in Arabian Ranches 3.
The former software engineer, who now owns a real estate brokerage in the UAE, is particularly interested in waterfront properties, including this one-bedroom apartment on Emaar Beachfront in Dubai Harbour.
The National takes a look around.
Please tell us about your property.
It’s a one-bedroom apartment on Emaar Beachfront in Beach Vista Tower. That was the first tower that was handed over in that area.
The beauty of that particular apartment is that it's on a very high floor, the 29th, and you have a great view of the full marina. The building also has a private beach.
All the buildings on Emaar Beachfront have a private beach, so that's very attractive, in my opinion, because that's very rare.
How much did you buy it for?
I purchased it for Dh2.5 million ($680,000) as a secondary off-plan unit. It means that it was before the handover when I purchased it from someone who had already bought it as an off-plan property.
The gentleman made a great deal because he purchased it for Dh1.48 million on a 50/50 payment plan. So, he paid only Dh740,000.
How much is it worth now?
It’s very difficult to say, because there are a lot of handovers going on, which is not good for the capital value appreciation. But I guess somewhere between Dh3 million and Dh3.5 million.
It is going to appreciate more when the whole area is finished, when the shopping mall is constructed and handed over. I would say in three or four years, I expect a better capital value appreciation.
What renovations have you done?
Since it was a brand-new apartment, I just furnished it and that's it.
What facilities does it have?
There is a very nice infinity pool, a huge gym where you have the view of The Palm. There is a barbecue area on the podium floor.
There is a multi-purpose room, which can be used for birthday parties and such events. There is a playground for the children as well, and a nice garden on the podium floor.
What other properties do you own?
I have a townhouse in Ras Al Khaimah in Mina Al Arab. I purchased that one in the same year as this, in 2022.
I have a couple of other off-plan properties that are not handed over yet.
What about the house you live in?
I'm renting it. It’s in a gated community in Arabian Ranches 3. I rent a townhouse there, a corner house with my family.
Why did you decide to rent your home?
You can make a better return on the waterfront apartments than on the house, in my opinion. You spend less and earn more from the same amount of money.
If I put this unit in Beach Vista Tower on long-term rent, it could be rented out for Dh170,000 to Dh175,000 annually, and what I'm paying for the four-bedroom corner townhouse in Arabian Ranches is Dh178,000.
Why did you choose Arabian Ranches 3?
I live with my children, and we came from Hungary, which is pretty green, so we looked for something similar. We cannot complain about Arabian Ranches 3, because it's full of trees and green grass.
How long do you plan to keep hold of this property?
I expect to have a higher capital value appreciation once the whole area is more developed.
It will happen in three or five years, so at least that amount of time I'm going to hold it, for sure, and then let's see what is going to happen after.
Do you plan on buying any other properties?
Yes, actually, I'm just thinking about purchasing another one-bed with a sea view in Dubai Islands as well.
I really believe in these kinds of waterfront apartments and buildings. Even if the apartment doesn't have a sea view, it's a good investment because these areas are very sought after. You can use it for short-term and long-term rent as well.
Do you prefer to buy off-plan?
It depends. In those areas that are still under development, like Dubai Islands, yes, I do, because in those areas, you can expect to have a higher capital value appreciation than the market average. And if you are an investor, you are looking for these kinds of opportunities.
It doesn't make any sense to purchase an off-plan in Dubai Marina or on The Palm because the prices are quite high, so you cannot expect a very high capital value appreciation.
What advice would you give anyone looking to invest in the property market here?
Try to look for the unique opportunities. Unique in the sense of what I do, like looking for the waterfront, sea-view apartments or purchasing in unique buildings. For example, if you purchase a unit in a very tall building in Downtown or Business Bay, try to purchase only very high floors, because that's unique. Or try to buy something in a branded building.
Sooner or later, that time will come and there will be a correction on the market, which means that the properties that are unique will be easier to sell if you need to sell at that time.
