Dubai is currently the hottest real estate market in the world. Elie Naaman, founder and CEO of real estate developer Ellington, discusses opportunities and risks for buyers from Germany and around the world.

Mr. Naaman, many people think of real estate in Dubai as luxury and expensive marble. Is that a stereotype?
You don't need the most expensive materials to create a beautiful home. The experience when you enter the house is crucial. Our properties are designed so that you only need to bring the furniture, which increases the rent by 25 to 35 percent.

Who buys real estate in Dubai?
Our customers come from 206 countries. Every two years, new buyer groups emerge. In 2015, many came from Gulf states, later from China, and two years ago, an increasing number of Russians. Germans, French, and Italians are also among the buyers.

Why are people drawn to Dubai?
Low taxes play a role, but security, lifestyle, and infrastructure are also important. The government has done a lot to make Dubai more attractive, for example in the healthcare sector. Dubai offers a high-quality life year-round.

How do geopolitical crises affect the market?
Crises drive people to Dubai because it is considered a safe haven. Many invest in rental properties with returns of five to six percent in Downtown, and up to 15 percent for vacation rentals.

What are the hottest neighborhoods for investors?
Downtown, Business Bay, Maydan, Palm Jumeirah, and Dubai Marina are in demand. There are many attractive neighborhoods today, not just on the beach.

How easy is it to invest in Dubai?
Very easy. You only need a passport copy and a credit card to purchase off-plan properties. You only need to come to Dubai once for the handover.

How do your clients pay?
Off-plan purchases are not permitted with credit, except for the remaining balance upon handover. Around 20 percent of clients use a mortgage.

Is there a limit to the real estate market?
The market will experience a correction at some point, but currently it remains stable. Even with geopolitical changes such as the return of Russians, no major downturn is expected.