⁠Real Estate Exposed: Who Really Makes Money & How to Profit | Tahir Majhitia | FO472 Raj Shamani

0:00Explain why is Dubai market hot? Dubai's advantage is that in less than 8 hours of flying time, you can access two-thirds of the world's population. So if you're doing any global business, sitting in Dubai, you can connect with people around the world very comfortably. Second thing is, it's a market where anybody can come. There is no government interference. So people are able to run their businesses the way they want to run. Then comes the infrastructure. You know, it's saying, solve rich people's problem they pay well. Dubai is solving rich people's problem. And that is the reason so many people are coming over there.

0:31How is a Russian buyer different from Indian from Chinese to Indian? Chinese come in bulk. Russians on the other hand they love waterfront and they love top-end stuff. And Indian buyers? Dubai the number one buyers are Indian. Either they are very good to deal with or it's very difficult. There's nothing in the middle. If someone is sitting in India and is 2 crores then what should Dubai enter to buy a real estate property? If it's a purpose rental return then definitely you can buy it. So, it will get 6-7-8 % net return on a residential property. Which probably, if you take something in the bomb, it will get 1-2 % return.

1:09And if someone has 10 crore and wants to invest it to them? Then definitely they can look at multiple properties. What kind of return can people expect? See, you could look at about 15-20 % return per year. That's a lot of return. Ranked in the top 3 areas where most of the growth are. Towards Dubai South, especially because of the new airport coming up. Then there is another waterfront destination which is coming up which is an area called Maritime City. There's a lot of action which is happening. So when you went first time, how did your first client lock? When you first deal, you don't know.

1:40What's wrong? One thing was that when you deal with different nationalities, you have to adapt to certain ways where they are comfortable. For example, someone is British. Someone says that I'm coming at 3 o 'clock, so you should be standing there to be a place for$2.50. Because culturally, with time, they are very particular. Now we're from Bombay. We think it's okay for 15 minutes. Did you lose this or it's 5 minutes late? It's 10 minutes late, the client is like, I don't want a deal. I don't get it. What's the most expensive property you have sold? 120, 130 crores. What would happen if you have 130 crores?

2:10Everything you can imagine. Each of these houses are like a piece of art. One house I visited had a bathtub which was probably what? 1.2 million dollars. It was a single piece of marble with which the whole bathtub was carved out. Thousands of people went to Dubai. Yes. So why some people make a lot of money and some people can't make money? If someone makes money in Dubai, how can they make money? How much money do you make in a year?

2:37Dubai's real estate market is very attractive. But is it profitable there? Or is it just a hype? This market's real insider secrets and hidden risks are today. Today, our guest is Tahir Majithiya, founder of Prime Capital Real Estate. In this conversation, we will know if we invest in Dubai in the market is a right decision. In Dubai, there are many areas where you will get the growth in investing? When you choose the developer, how do you check credibility? How do you secure your investment in rental income? If you are thinking about investing in Dubai, or just understand how the business works there, so watch this entire episode till the end.

3:26And to know more about Tahir and his work, click the link in the description.

3:35First, tell me basics. Who you are, what do you do? How do you feel like this? And how do you become an expertise? You have to tell all about real estate. about all of you. So I was in real estate in Bombay also. My father was from this field. Where were you born and brought up? Bombay. Very much. Born and brought up in Bombay. Spent almost close to 30 years of my life here. And then I moved to Dubai. I always first visited Dubai in 2005. Okay. I liked the place very much. In 2005, you were also blingy? There was not so blingy. But it was blingy. from that time I just the first time I went I just fell in love with the place there was something which attracted me and I was always wanting to do something there okay I tried to do something and from 2005 I've been literally visiting probably every 3-4 months I used to visit Dubai at least for 3-4 days nothing happened you know 3-4 days, 5 days you know and why did you go?

4:35holiday had some friends that time I was also doing some IT business for those sometimes for trade fairs you know something or the other i used to keep traveling plus uh at that time even uh you know my sister was studying in london so you know you're flying by emirates so that was like you know i was really in love with the place i used to keep going there and then finally you know i got an opportunity to move and i just said let me just do it in which year did you go around 2013-14 so i was i started getting involved in the market there 2013 where you know I was going coming going coming and not full time there 2014 onwards then was you know a full time move okay so tell me 2014 since today thousands of people will go to Dubai yes now people will go to Dubai some people can make money some people can make money like what I have seen or heard at least I feel like Dubai who goes here is very much money.

5:45It's all of a sudden, it's like, I don't know who has a shady job done, who has a lot of crores, and the government has a lot of money. Or, people are very nervous, and they come back to us. There is nothing in between, that someone is struggling and surviving. Why do some people make money, and some people cannot make money? Let's talk about what they cannot make first. oh if you don't make it sometimes what happens that's happened probably is he is given to her so who made the journey has made whole life no it's not easy you go to hand and clap to someone who has done something and keep up and listen to him if you**** imperialism anyone will never get you I might get a lottery it's not that That's not an example Now that's the point of view today.

6:40That's the point of view today. Okay. Now, look, there are two types of people. Okay. One, I don't know what he did. The lottery was like, what happened. Okay. That's not what I was going to say. But some people who have genuinely struggled, worked, worked, worked, worked, and they have made it really big. Now, when you ask them, the journey is not easy. It has been a very difficult one. Sometimes, it also has been a difficult one. Sometimes, if you leave it in the middle, so then it's gone. All the hard work is gone. And if you keep continuing, then somewhere you hit it. And there have been people who've been doing it for a long time and people have started realizing now.

7:20It could also be that case that they've been doing it for a long time. But now people have seen that, okay, you know, yes, in general Dubai's growth last 5-7 years, especially after COVID, everybody in general has, you know, a wave and everybody is gone and that wave up. So that is in general the city or the place. But what people don't know many times it happens that if you try and do any shortcuts you know I think there someone doesn't follow you know you're trying to break the law. These things are things which you know people try to you know think that there will be something in the open and that's not going to happen.

8:02You have to follow the law you have to go in a manner because it's a level playing field for everyone okay and i'm saying that i'm doing a business today i can't say anything that's got something else, no influence and it's not my it's a level playing field for everyone so as a business if you don't follow rules or something wrong people will see that there's a setback tomorrow it's also said that you're dealing with the world you're dealing with a particular type you don't work with a particular nationality you work with all different people so there is also that you have to be you have to make sure that you work with you have to understand a little because you don't want you know someone has cheated with you and it's a place where if you don't have a contract between two people between a transaction then you cannot say that this is always happened you know the system works over there that everything is in writing black and white if you have it then you are secured if you are not secure then there is nothing so there are a lot of people who have done these mistakes sometimes people are not putting in enough efforts also I feel and you have to be innovative because competition you are doing anything there is cut throat cut throat in any field whether you are in an FNB in a car rental business you are doing anything competition there fears so you have to evolve and you have to see how you can survive true so when you went first time first client how did you lock it when I started some clients were from here who knew they were interested in buying so initially was the client who I knew from here okay But if you will say that what was a locally sourced client, then when you first deal, you will get out of the knowledge.

10:08Because what happened? I went, but the way things work over there, the systems were different. And I thought that something happens. When I went first, I realized that property listings are properly. And listings, maybe you have to really pay attention. and I thought I would go to the internet and go to the listing and buy a property because back in the day over here also portals were not really a popular thing so I was not really exposed to that so I went and I said okay okay and I had a listing and I realized that I had to do the listing before I had to learn before we do it so we do it okay how important your first image is in the listing is in the listing is in the headlines how important is in the listing this that and you know people actually make an inquiry so I said okay fine this is something new first about five to six months I was not able to sell anything because one I was new over there I was kind of using my logic of whatever I knew and I was not ready to actually learn at that time I feel personally I thought I always come I will give it.

11:29It will happen. And I was trying, trying, trying. And then what happened is, I realized that I am focused on this thing that I will grow something. Okay. What I am doing is that I am not paying attention to doing a rental, doing a normal sale, stuff like that. So then when I realized this, I said, okay, let's do a job from one place. from the first time I started I started one building I wanted to rent here I was there first rental there was 5-6 months I was there but I got confidence that I thought that I was working then I got a hang of it that I was wrong what was wrong when you deal with different people you have to adapt to certain ways where they are comfortable.

12:27This is a time for understanding. For example, someone is British. He says that I'm coming at 3 o 'clock. So you should be standing there and standing there. Because there are high chances that he will reach 250 or 255. Because culturally they are so, you know, with time they are very particular. Now we are from Bombay. We think that it's okay 15 minutes. So this is just one example. lose kari or 5 minute late on the way? Deal lose kari? Probably. 10 minute late late client is like I don't want a deal. It's gone. It's not even got it. So you know, so these things starting to understand time. But when you come to understand then you're like, okay, okay.

13:12Now after dealing with everybody now someone comes to know what to do. Tell me different psychology of different buyers. Because now you have taken your name British. So what I've heard is that Dubai is the most Britishers who have bought properties. In Dubai, obviously in Dubai, the number one buyers are Indian. Okay. Now there are a lot of British buyers also coming in. Now I think in the top five definitely, if not in the top three. But yes, they are buying a lot. But they have always been buying from a long time. But now they are buying a lot because a lot of people are moving from UK. Okay.

13:51So, that's why they are definitely buying a lot. but when it comes to buyers mentality and there it's very different. For example, if I'm British some people who need please email everything and they will want to sit down properly, go through the email. Two reasons. Number one, when you email, I have writing. They want everything black and white. So they will see everything. Then there are some, okay, Okay, send us on WhatsApp. Okay, done. It's done. Some people will come and see. They will consult with family. Decision making is very long. It's influenced by a lot of people. And not just one person or two persons.

14:44So different people have very different temperaments. a lot of people you know especially from the Middle Eastern region sometimes they are very you know they want to do it very quick just say just finish it but sometimes procedural work you know it takes time so a lot of people have a very different mindset people for example in the US very different to deal with you can send something on WhatsApp I don't know somehow they don't prefer using WhatsApp what do you see? SMS SMS message or phone or email or call and present but whatsapp messages will not be read and if you even notice that US has if you compare with other countries around the world their usage of whatsapp is extremely low I didn't know that yeah their usage of whatsapp is extremely low I know that iMessage and SMS is very big big big big big there you don't email me and then you come on the call and explain, do you zoom.

15:49But if you say I will send you on WhatsApp. They will consider that, no? So, tell me about individual bias. One by one. You spoke about British, you spoke about US. Russian bias? Russian bias again. See, some very straightforward and very easy to deal with. Sometimes what happens is that with certain nationalities also language becomes a barrier. Russians, if they are speaking English, no problem. Easy to deal with. Not an issue. Language, if you don't understand the language, then that becomes a problem. That is the same with Chinese buyers also. In fact, with Chinese buyers, it's a lot more when language becomes an issue.

16:37But what about them is different? How is a Russian buyer different from Indian or Chinese? Chinese often buy in bulk. okay they are buying in a group you know why I don't know I mean individual but there are a lot of times when they come as a group to take advantage that we get a discount okay Russians on the other hand they love waterfront number one they love waterfront properties and they love like top end stuff they don't want to just invest into something which is average or mediocre they will say that the thing is top end okay yeah so that's Russian that's Russian then Chinese group buying group buying and more buying towards areas such as you know downtown areas high rise buildings that's where the Chinese you will always see buying more that's not that much in but not so much okay and African buyers in Dubai or how much African buyers have not so many few lot of European buyers now we are seeing lately off lately US Canada and how are they different they are new to the region so it takes little time they feel a little time to understand what's going on here what's going on UK, Europe, India South East Asia you know something about Dubai so you don't have to explain but you don't have to explain especially to explain because again, one thing, the client comes to the US, UK, Europe, all these places, people are well-traveled.

18:21But, many people in the US, they are most likely within their areas more. They will get very few people who are extensively well-traveled. So, they understand. But, those who are not, they have time to understand. And Indian bias? Indian bias, so Indian bias. tell me a good thing about either they are very good to deal with okay either it is very simple or it's very difficult some of them they will come with a very clear what do you say requirement or they will have loyalty okay I have said I will take it from you, you have shown it I will take it from you and they will keep their word that boss, whatever said and done, your word is your bond, you know, some things which I feel, sometimes, what will I do, everything will be seen, okay, everything will be seen, this, this, this, this, everything will be seen, everything will be done, everything will be done, then answer not to, and after two months, it will be known, someone will go and take it, okay, So that is one thing which we face that you know they don't communicate sometimes they don't tell what's coming and they are like you know everything I've seen, 50 properties I've seen information, everything what's coming, what's coming what is the pain point but no you know and then they bought from someone else but explain like I don't know anything about Dubai today I know nothing I'm an absolute beginner okay Explain why is Dubai market hot What is it that is fundamentally different than Mumbai or London or New York Why is it so much activity in these markets?

20:25Why is it so attractive in Dubai? What is Dubai attractive at this point? So Dubai has what has happened in the last few years? year on year if you look at it, Dubai has evolved. See Dubai, first of all UAE as a country is barely some 54 years old. Okay. And Dubai as a city started freehold properties only in 2002. So if you go to Dubai and say I don't have any property that will be built in the 1990s, there is no property that you can buy. Because freehold started in 2002. That means the market of Dubai is barely 23 years old as a market now when you talk about other markets like London Mumbai New York these markets are now centuries old these markets are extremely old so obviously these markets have gone through different phases and today the prices of their that is because of this Dubai market 23 years old now as a place first of all Dubai has advantage Dubai has advantage advantage is that in less than eight hours of flying time, you can access two-third of world's population.

21:42Okay. And in less than four hours, one-third of world's population. Okay. So, connectivity wise, okay, you are connected practically with two-third of the world's population in less than eight hours and the time difference is also not so much. So, if you're doing any global business, sitting in Dubai, you can connect with people around the world very comfortably okay second thing is dubai as a place has made itself literally a place where anybody today wants to come and set up it does not need any sort of local partner any local individual to be there or any sort of you know it's a it's a market where anybody can come establish their business start the business there is no issue on getting people in right today you want to set up a business tomorrow you come and you want to employ 10 people and you want to get them from whether from india or uk or wherever you can get them as long as you're complying with all the local rules regulations so number one this is there second thing is the taxation regime the taxation today there is corporate tax people think it's not tax but it's in Dubai 9 % corporate tax 5 % VAT okay but But those people are doing business in the other place, for them, this 9 % or 5 % is extremely reasonable as compared to paying 30-40%, 50 % tax.

23:08Thirdly, the way Dubai has positioned itself, it is not just about saving tax, but the ease of doing business is so, that if anyone comes there, if someone is running a business, there is no government interference. so people are able to run their businesses the way they want to run then comes the infrastructure today you go anywhere I don't know there's any other city in the world which continuously keeps on updating its infrastructure the way Dubai is doing today you go to London I went to London in 1995 or 1996 in the first time I went to the first time in the life okay I went to the Bourne Street or Oxford Street I went to the Bourne Street I went to the Bourne Street nothing has changed the shop has changed but it looks like street like this if you have come to Dubai if you have 10 years ago if you have come to Dubai then Dubai has changed okay this thing doesn't happen in many cities in the world plus Dubai is being run literally like a corporate the government over there works exactly like a corporate which is analyzing which is seeing what are the pain points of the people what is it what can we do to perform better.

24:26Right? No other place is actually thinking what can we do to perform better and what we can do and the decision making is fast. If they feel that tomorrow we want to change a law and this will help us grow they can do it tomorrow. Right? They don't have to wait and you know they don't go through problems like a lot of other places where creating a law will take end number of years. So that is one thing and then to top it off the safety and security what you get over there people get so comfort, the lifestyle which is not one thing, Dubai is a whole package in the whole world, if you have to migrate somewhere even if you have to pay for your money then you don't have any place in the plane where you go to your family and go to the plane and decide that I will be living here Dubai can you do from anywhere in the world, if you can come to the world you can afford it and you have the money you have your business whatever you can come you can live over there comfortably and no one is not getting frustrated but today if you think if you migrate to the UK or Europe or something else it's a very lengthy process so what's Dubai what's doing Dubai is doing you know a saying solve rich people's problem Dubai is solving rich people's problem it is literally solving the problems of the millionaires and billionaires in the world and that is the reason so many people are coming over there true I mean five six years or even ten years back we didn't hear the likes of a you know a Lakshmi Mittal profile from the UK to Dubai that was not happening like that there are so many other millionaires billionaires who are moving to Dubai making it their base is for a reason you know they are giving a solution to a problem interesting so in this when Dubai is actually solving for rich people's problem I love how you put it up because it's sort of makes a lot of sense it does make a lot of sense Dubai is solving rich people problems yeah when you solve for rich people problem don't you then curate everything like nothing can be real probably like for example simple things property prices area prices which area is bigger or not that will grow, right?

26:50Are these what the market forces are deciding? Are the prices of government deciding? That there are some developers who are oligarchs, who are deciding? No, it's not that obviously one is a location. The world is where it is. And in real estate, the location is a location. So, there are certain locations which are commanding these prices. It is not that every thing is... East, West, North, South, Dubai, there's no way anything else. 100%. See, the city is growing exponentially. okay so whether they can grow towards the south north east west they are growing completely but when it comes to the prices prices are not growing in the same percentage everywhere okay it's not it's not that you see a whole market graph and say this much the entire market grew but within that market there are some communities and some markets which are growing at different percentages some are remaining constant some are showing 5 10 percent growth some are showing 100 percent growth okay so that is the sub market and the market within the market okay so that's a different thing and of course now where there is a lot of growth in luxury buying is a lot of luxury that obviously is being you know is due to the kind of demand which is coming in from you know the people who want to spend that kind of money so is it from the people who government pushes it is more from the people now see government is pushing in terms of okay now if they are creating something new they want to create something better than what is already there right and marketing techniques don't do much more see marketing i'll tell you what specific area government said this is it we want to now market it because we are actually best at marketing things now again you know when we were discussing previously okay there are some like for example some you know watch brands who do not market but they still come under price so real estate may be there are some brands some developments which are not really going very heavy on marketing they are going through a very quiet marketing where people who know people who understand will come and pay the price and buy you know kind of very underrated and then there is the bigger marketing which is happening but that bigger marketing which is happening is not happening towards the very high end of the market it's more towards the mid segment of the market where it's more the affordable product got it so tell me rank top 3 areas where the most growth is the most growth the future potential one is towards Dubai South where the most growth is a lot of things are happening especially because of the new airport coming up they are moving the entire airport to a new destination and the plan is to move there by 2032 so one is around that area and surrounding a lot of things happening.

29:41Then there is, you know, another waterfront destination which is coming up, which is an area called Maritime City, Rashid Yotsin, Marina, Dubai Islands. There's a lot of, you know, action which is happening. These are two areas where there's a lot of things going on. And then in the top end of the market, the very high end, there are some new islands being built in the area of Jumeirah and you know very close to the Bulgari island and the Jumeirah Bay area which is extreme top end of the market where there is going to be some when these things are completed could be at a totally different price point who is buying?

30:22let's say if 100 % people are buying in Dubai properties out of 100 % how many investors are? how many real estate developers are? how many investors are? they buy a lot of money, hold and send and how many actual end users are because ultimately the demand will be the market so first thing end user buying last past 5-7 years year on year what percentage would they be out of 100 that percentage is difficult to say because we don't get access to data give me a rough path based on whatever you know I think end user buying today has increased a lot I would say at least especially in the luxury segment or the townhouse and villa segment I would say at least 50 % is now happening for end use and even I am talking about the bigger villas when I say bigger villas 15 million, 20 million, 25 million villas which are offline are launching today in that people are buying they are buying end use of course 50 % almost 40-50 % that's a lot that's a lot don't you think that's a lot it is because but people are buying probably this numbers no see because it's not again all there are certain categories okay if you can see the studio or one bed launch 90 % of the times are being bought by investors either to flip or to rent but the big units a lot of people are buying that's why keep it keep it give it you get your money, you get your home.

32:03Okay. Because what happened in the past few years there were so many people that now it's not necessary that every person is coming to buy themselves. They probably have the capacity but because they are new into the country they are renting 2 years before. Okay, now this ecosystem is completely understood and they know how they are going to go. Now they know that okay, I'm going to come here and I have to take it. They have understood the place. They have liked it. Now they have decided that okay, we will take it here and give them money. whatever so what's happening in that a lot of the top end of the buying is happening for end use some little bit is for flipping and some also for rental because the rental demand in the top end of the market has also gone crazy people come and you know rents in some houses it's crazy give me an example so for example a villa by the golf course five six bedroom fully done up very nice community everything good there people are paying rents of around 4-5 million at places so that's almost close to 10 crores 12 crores a year rent why would somebody give a 10 crore rent there are two things new place in the country so before they finalize where they want to actually put in the money and buy they are happy to pay the rent because it gives them flexibility okay okay, I have a contract for a year or two years, I don't understand.

33:33When it's over, where it's over, what's happening now? When this type of person comes, who is already a millionaire or a billionaire, it doesn't matter from this thing, okay, I'm giving rent or what? It's about to see everything ready for me to come and live in it. So number one, that. Because these houses are again fully done up. Everything is there, you just come in with your clothes. So it's not that you go and do this, turnkey solutions people are coming and they are straight going in okay some of the high end apartments or the penthouses they are then coming out fully serviced say like a four seasons residences or something like that where all amenities facilities are everything ready one reason is that second thing flexibility gets them and because they are new into the place probably they are wanting to see how it goes for them how well they settle in okay how does it feel if kids are going to school then okay are they settled in once they settled in after that they are doing okay now they are settled this is our ecosystem this area they have to buy so that is also a reason why people are doing that and so these are most of them are you're saying out of 100 % you're saying majority is investors yes see investors will always be there because Dubai as a market is why investors love it for one simple reason that if you see the rental return so Dubai's rental return today at least anywhere between comfortably between 6-8 % net on a real estate rent which compared to a lot of big cities like London, Mumbai or you know New York and all is still quite high is quite high and people don't make that kind of return on a real estate rental you know of a residential asset commercial is different but residential in the residential, people don't get the residents so for them that's an added advantage plus with Airbnb it gives them also the flexibility to use it themselves for a year, for a month, for a month for a month, for a month, for a month, for a month you can live, for the rest of the time you're giving rent, as giving you a good rent and tell me about the about the developer who makes money and who doesn't make money look So, which is the best developer, which I think, I've seen today that whether someone has bought a one-bedroom apartment or bought a villa of a 25-30 million, a 50 million.

36:09Imar is the best developer in terms of the product, the customer service, the master plan, whatever. And the reason they are today the number one developer outside of China is also because of that because if you look at historically any communities they make a whole master plan they will never make a single building when someone has bought a normal one bed apartment when they get a chavi not just building but building's surrounding everything is made so one of the most safest if you say who is the developer then I would say definitely but having said that there are also a lot of underrated developers in dubai they have not heard of and they feel that i don't have heard and they are you know scared but those are underrated why because as an investor or a buyer you can make a lot more money than a lot of other developers who are probably very big like for example there's a developer called hnh very underrated beyond as a developer very underrated Ellington okay so these are good developers big developers but you will never see them paint the town red or you know big big holdings all these are not all the product always keeps on the focus always client focused that you know make sure that client gets a nice product good payment plan neat and clean to deal with you know everything is very crystal clear you know issues and whenever the product has been handed over it's given a great appreciation plus there are many small developers who are very underrated, big developers they are building 2-3 buildings in the year and they deliver good product so that is the thing but then there are a lot of who do so much marketing, so much hype that people think that this is the biggest or the best and they go in for that but not necessarily that that is the most profitable.

38:21What do you feel about Shahrukhs? They sold it in one day. Yeah, that is okay. See, what happens I'll tell you. This sold it in one day is not about that today. See, I'll tell you what happens. This is a very typical thing of Dubai. Not just with one developer. A lot of developers sold out in one day. So many billions. What happens? What happens? In this case, there's something called as EOIs. Expression of interest. Project launch 15 days before, month before, 2 months before. depending on how big the project is they start collecting EUIs based on certain information which is not complete information but basic information that the project is going to come here this is the configuration of its and this is the expected price okay so what happens is if today you as a client you are interested you will say Tahir I'm interested I'm giving an EUI okay you check a token you give a passport I register you as an interest okay so what happens is that process goes on depending on how big the project is sometimes for 15 days for 20 days for 1 month 2 months okay it's in the UI collection phase then comes a launch day launch day probably before the month 10 days whatever all the information is given that this is going to be the exact flow plan this is this this is this on the launch day it is getting allocated so what happens usually that developers have already collected so much so much that they have sold out that if it's 500 units then they have already 500 checks okay okay, when they have 500 units, there are 500 units, okay, then, we go, today is the day, it is the day, so, it is the day, it is the day, it is the day, this unit is for Raj, this unit is for him, this unit is for him, this unit is for him, so, allocation happens that day, okay, so, it is sold out in one day, but, after that sold out, the preparation goes on for a long time, but still, even this is not, every developer cannot do it, no, every developer, see her developer strategy not every developer wants to be sold out in day one because there are some developers who release also inventory phase wise they will pre-launch give it a price then launch then the price will increase then the price will increase a price at different stages probably they don't want to be sold out in day one which one is better which one is the ones who go slowly slowly See, day one sold out on Raj is no guarantee of the product Just because you're sold out does not mean your product is amazing But that means you're marketing and your world is amazing Your marketing is amazing Right?

40:57You're not sold out on day one but that does not prove that you are going to build the best of best I'll tell you what there are so many developers okay and big ones who have not even kind of marketed they are in no rush to sell out their product but they are building excellent stuff where people who are putting in money eventually on handover make the most money okay so what happens is with so much coming into the market it is not practically possible that everybody will make money someone has to lose also okay who loses majority of the people who are going to hype they realize because what happens in hype in the hype in one thing.

41:38You do the decision making in a very fast way. You don't get time. So you don't get it properly, thoroughly go through. You do it in FOMO. And in FOMO you will do something. There are high chances that you take the wrong decision. So when people go into the hype, then you realize that I'm in the hype. Dubai is really the hub for branded residences in the world. but what is happening is everybody is becoming a brand I'm sure if you go and tell a developer that make a tower of my name someone will do it to encash on your brand but the point is that when see to build a good project you need four teams and nothing else anywhere in the world wherever you are making you need four teams and one a good plot should be okay one you need developer one you need good architect who is going to design the entire building and put thought process on that when this is ready this will be utility okay you need a good interior designer who will design the space when it is ready that okay when a person steps into this house or office or whatever this is what they should feel okay and you need a good contractor to build it.

43:06So, for me, anytime I'm assessing the project irrespective of where it is, when I see, for me, these four things are very important. Don't you need to be a marketer? Look, marketer needs to be sold. Not to be a marketer. Okay, that marketer will also be sold. But how do you know these four? How do you know these four? See, that's what you know from experience. Today, it's a simple thing. If there's an architect, he's done something before. If you go and see, and you think about who has built this building, who has made it. So you know that yes, okay. But it can be everything in-house. Let's say you are building a developer.

43:39But see, in-house maybe you don't use it. See, in-house, okay. For example, you are becoming, I'm saying, let's say for example, you are becoming a developer. You have an architect, interior, all your salary in-house took you. That doesn't happen there. You need to have a licensed architect who is, for example. Yeah, license, you have to take someone in-house, full-time, you have to take a job. That you have to look at the floor plan, you know it. that if you know how to assess a project of floor plan let's assume that you haven't told me who is architect then you will come to know by seeing the floor plan that whether have they optimal is there optimal utilization of space is it thoughtful is it something which is you know done really differently see what you said is absolutely right there's a developer called Ellington every project of theirs okay their their motto is only live by design live in design live by designs okay so they are a design focused company every project they build okay they try and do something or the other value add into the design which people realize once the product is ready and once the product is ready a family walks into that apartment or townhouse or villa whatever sees the thing and is like here's my money you see so when building is ready and like that there are a lot of other developers who are not so known okay but they pay attention to these details once it's ready people go inside they like it they're like I'm willing to pay money for it because it's ready and when you see it so buying off plan and ready property they're two different games see what's in Bombay in Bombay you have to take a property in Bombay if you go to Bombay it will be good then you will irrespective you have made it so coming back to our Shahrukh conversation so it's like you feel that when he will he will not be until he wouldn't know but if Shahrukh Khan is attaching his name with an existing developer Danube who is also a very big developer of course I'm sure they both will do justice to look they should because Because someone like But my point is Someone like Shah Rukh Will not be Will not give his name to Somebody who will Who's able to Destroy it And someone like Danube Who's gotten a name like Shah Rukh Will also not Do anything So I find But my point is That what sort of End of the day What do you want as a buyer You want That your product Should be great Yes And my prices should go up Prices should go up Correct so do you think because of one because see branded residences we have seen car companies are doing jewelry companies Chelsea football club bunch of people are doing stuff right first time a celebrity has done it it's a very different type of I don't think India has done it no 100 % around the world has anyone done it probably probably no because he himself was a brand and he himself was a developer also so that we don't know but I think like in if you look at just from the pure marketing point of view it's a genius it's a genius move it's a genius move it's a genius move I admire Rezwan Sarjan for this because you know sometimes so I also like when you know when I see him right at this stage like you know where he's reached but he is still so consistent that you know sometimes gives me motivation you know If he can do this, I can't do it.

47:21Every day, he comes with a thing which is so different than market. 100%. Every time he will figure out a way to become a marketing king in the market. This guy is a genius when it comes to marketing. Agreed. Absolute genius. Agreed. I really admire the way it's done. But when it comes to the product or how it is going to be eventually, that is something we need to wait and see. Give me an example of one project in Dubai which people went to hype. And it tanked. There are projects where people have bought and waited and on handover the prices are still the same. Why? Because they were sold expensive.

47:59See what happens. Marketing. The most important thing people ignore is price per square foot. What do you know in Bombay and Dubai? You will ask the broker to Bombay. What is the problem here? Okay. He will say here 50 ,000 per square foot. 100 ,000 ,000 ,000 ,000. He will say in price per square foot. In Dubai, 90 % of people don't understand the concept of price per square foot. You can ask the broker here what is the problem. He will say here one bed is so million. Two bed is so million. Three bed is so million. He will not say price per square foot. I don't do all the stuff. But the majority of them.

48:41Only 10-20 % of the people understand this concept. Price per square foot. And he will tell you price per square foot. So when the developer is launching, if he is in marketing, he has a heavy price so much because of the marketing, that you are buying the hype and buying ticket size. What is the overall value? You think that one bed is 1 million dollars, I buy 9 lakhs. But you don't see that one bed that is ready, that is 800 square foot, 1 million dollars. And you buy 500 square foot, 9 lakhs. So when you are ready, you will not be in the excess. in Japan you will stay in Japan or you will get an appreciation in it.