European property leader opens its first Middle East office in Dubai

The firm, established two decades ago, now has 174 shops in 18 countries across Europe, South Africa and the USA. The group's activities focus on the high-end residential and commercial markets.

The salesroom will complement Engel & Völkers newly-established regional office, which already has a roster of clients, and properties on its books across both Dubai and international markets.

Internationally, Engel & Völkers is the sole representative for Christie's Great Estates, a subsidiary of the auction house, and Mehrdad Bonakdar, CEO and chairman for Engel & Völkers Middle East, believes this commitment to quality will serve the region well.

He said: 'Dubai is one of the fastest-growing cities in the world, in terms of commercial development and real estate, so it can be a minefield for potential buyers - not least as much of the property is still in the planning stages.

'As well as only listing selected properties, we have studied the market in depth and can provide a useful guiding hand in terms of transparency of transactions and guidelines on the legal framework in place.'

Engel & Völkers publishes market reports, figures and legal information in each market it is present. 'With so much of Dubai's property not yet completed, true market statistics can be hard to obtain. Our market feasibility studies and international experience help us source this information, which we can then pass on to the customer.

'In addition, the company provides a comprehensive after-sales service, right down to advice on the best furniture removal firms to use.'

According to Bonakdar, there is an anticipated need for 45,000 new housing units a year up to 2008 to meet the growth in population, but he points out: 'The market does change overnight with new government project announcements, which could lead to a surplus in real estate offerings.

'Having said that, return on investment is currently at high levels, with property on The Palm doubling in value in areas; however, the pricing structure is still relatively low on an international scale.'

Properties listed in the Engel & Völkers' books include: Burj Dubai, the world's tallest tower; Arabian Ranches; Emirates Hills; Dubai Marina; The Palm Jumeirah, Jebel Ali and Deira; as well as islands on The World.

Turning to the international market, Engel & Völkers publishes its own glossy magazine several times a year, GRUND GENUG, covering lifestyle and architecture as well as the estates on its books.

Bonakdar said: 'While many companies focus on selling property in Dubai as an investment, our customers are largely looking for second homes. The word 'home' is key here: we look for properties with history, personality and character.

'These have a higher market value on the whole, as befits our association with Christie's Great Estates, and are the types of homes that would catch your eye in the back pages of magazines like Vogue, Tatler or Country Life.'

Engel & Völkers' sales strategy has paid off over the past 12 months: the turnover in gross commission for the group rose from 34.2 million Euros (US$44.2 million) in 2003 to 49.7 million Euros (US$64.3 million) in 2004 - an increase of 45 per cent.

'During 2005, the most significant growth markets will be in Asia and we plan to supplement our new Dubai showroom with offices in Hong Kong and Singapore as well as elsewhere in the Middle East.

'Regions with above average trading volume will continue to include South Africa and Spain, and Engel & Völkers will be the first residential property company to establish a structure for expansion in Eastern Europe.'