Business Extra: Property Finder chief on UAE boom and $34m plot of sand


Kelsey Warner
  • English
  • Arabic

The property market in the UAE is witnessing an unprecedented boom, supported by an increase in demand from international buyers.

This is according to Michael Lahyani, founder and chief executive of Dubai portal Property Finder, who joins host Kelsey Warner on the Business Extra podcast this week.

They talk about the state of the property market and the significance of one historic deal: the sale of the most expensive plot ever sold in the UAE, a patch of sand half the size of a football pitch on Jumeirah Bay Island that sold last month for $34 million.

Also discussed: how the property market has matured over Mr Lahyani's nearly 20-year career here, why the UAE's Golden Visa has changed the game and if Property Finder will go public any time soon.

In this episode:

Most expensive land plot deal (0m 30s)

Overview of the property market in the UAE (2m 27s)

More residents buying houses than before and the impact of the Golden Visa (8m 04s)

How did Property Finder handle the pandemic and whether they consider going public? (18m 20s)

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How to keep control of your emotions

If your investment decisions are being dictated by emotions such as fear, greed, hope, frustration and boredom, it is time for a rethink, Chris Beauchamp, chief market analyst at online trading platform IG, says.

Greed

Greedy investors trade beyond their means, open more positions than usual or hold on to positions too long to chase an even greater gain. “All too often, they incur a heavy loss and may even wipe out the profit already made.

Tip: Ignore the short-term hype, noise and froth and invest for the long-term plan, based on sound fundamentals.

Fear

The risk of making a loss can cloud decision-making. “This can cause you to close out a position too early, or miss out on a profit by being too afraid to open a trade,” he says.

Tip: Start with a plan, and stick to it. For added security, consider placing stops to reduce any losses and limits to lock in profits.

Hope

While all traders need hope to start trading, excessive optimism can backfire. Too many traders hold on to a losing trade because they believe that it will reverse its trend and become profitable.

Tip: Set realistic goals. Be happy with what you have earned, rather than frustrated by what you could have earned.

Frustration

Traders can get annoyed when the markets have behaved in unexpected ways and generates losses or fails to deliver anticipated gains.

Tip: Accept in advance that asset price movements are completely unpredictable and you will suffer losses at some point. These can be managed, say, by attaching stops and limits to your trades.

Boredom

Too many investors buy and sell because they want something to do. They are trading as entertainment, rather than in the hope of making money. As well as making bad decisions, the extra dealing charges eat into returns.

Tip: Open an online demo account and get your thrills without risking real money.

Updated: May 03, 2023, 8:22 AM
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