Dubai is increasingly becoming a hub for international investors, and Kredium is there, helping clients navigate this dynamic market.
Miša Lazović, Founder of Kredium, recently shared with Gradnja how the company operates in the UAE, the opportunities Dubai offers to foreign investors, and the support Kredium provides to make investing smoother and more secure.
Read the full interview below.
What are the main reasons why an increasing number of investors from Serbia and the region are considering Dubai as a destination for real estate investment and construction?
Real estate investment requires a long-term approach and careful understanding of the factors that influence value and security. Dubai stands out as a globally recognized and transparent market with a stable legislative framework, which is one of the main reasons it attracts a large number of foreign investors. In addition, Dubai has a diversified and fast-growing economy, along with strong political and economic openness toward international markets. Unlike Belgrade, which unfortunately shows stagnating demographic trends with an almost unchanged population in the next two decades, Dubai is expected to nearly double its population in the same period. Finally, one of Dubai’s key advantages is its strategic location – more than four billion people can reach the city within just a few hours of flight, giving it a unique edge in the global real estate market.
Although Kredium initially started operations in Serbia, we recognized great potential in Dubai, and part of our team and activities are now based there. Thanks to this business model, we are able to provide clients with a wider range of services, concrete and experience-based insights, reliable data on market conditions, as well as comparative reviews and analysis of both markets.
What specifically facilitates the construction process in Dubai – from finding land to obtaining building permits – compared to the experience in Serbia?
What significantly simplifies the construction process in Dubai is the high level of market transparency: from data availability on the number of projects, analyses, and prices, to a clear regulatory framework and legal certainty. All key processes are digitized, secure, and – most importantly – fast. The rules of business and construction are the same for all participants, while clear predictability of cash flows further contributes to the safety and efficiency of the entire process.
How fast is the process of obtaining permits?
Obtaining building permits in Dubai typically takes from three to eight months, depending on the complexity and size of the project, as well as the region and jurisdiction within the city. It is important to note that the speed of the process largely depends on engaging qualified consultants with relevant experience, who can significantly accelerate and simplify the entire procedure.
What profit margins can investors expect in Dubai, and how do they differ from margins in Serbia?
Profit margins in Dubai largely depend on the choice of location, type of project, and strategic approach, but they can generally be expected to be significantly higher than in Serbia. This is precisely where Kredium’s role comes into play as a company operating simultaneously in both Serbia and the Emirates. We provide clients with relevant and comparable data on both markets and, based on detailed analyses, feasibility studies, and real market offers, we can accurately assess the attractiveness of a specific project and provide a clear overview of expected margins compared to alternatives in the other market. This enables clients to make fact-based decisions with the assurance of having a partner who knows both sides well and can guide them through the entire investment process.
What are the biggest challenges for our investors, and how can they be overcome?
The biggest challenges our investors face are lack of familiarity with the market, a certain degree of uncertainty when entering a new destination, and potential language barriers for a smaller number of clients. Although formally entering Dubai’s market is relatively straightforward, what investors often lack is local experience and reliable partners who can facilitate every step. This is precisely where companies like Kredium play a crucial role.
Since in Serbia it is common practice to compensate contractors or obtain land in exchange for square meters, what does the financial structure of projects in Dubai look like?
Unlike Serbia, Dubai does not have the practice of compensations with contractors nor the possibility of obtaining land in exchange for square meters. If a buyer wants an apartment, they may receive a certain discount, but not compensation in the traditional sense. The basic rule is that land must be purchased and fully paid, with a mandatory deposit of at least 30% of the project’s construction value into a dedicated account. The financial structure is therefore based on clear parameters: land price, construction value, and sales value. This model requires investors to have real capital in order to even enter the business, which in practice means that the risk for clients is significantly lower. As a result, Dubai’s market is more stable and reliable, projects are completed on time with fewer issues, and investors gain additional confidence.
How much capital is realistically needed for an investor to position themselves in Dubai, and what kinds of projects can be realized with that amount?
For serious positioning in the Dubai market, an investor needs between €15 and €20 million in capital. With this amount, it is possible to realize a residential project of 15 to 25 floors, with approximately 100 to 200 residential units, depending on the location and type of building. Such projects represent a typical market entry for investors who want to participate in Dubai’s dynamic real estate sector and secure a stable return on investment.
How does Kredium support investors from the initial idea to project realization – from consulting, through marketing, to sales?
Kredium provides investors with full support in all phases of the project, from the initial idea to complete realization. Our long-standing presence in Dubai, network of reliable partners, and experienced team allow us to deliver comprehensive services: from feasibility studies and obtaining building permits, through organizing tenders and selecting contractors and subcontractors, to supervising and carrying out construction work. In addition to technical and operational support, we also engage in the strategic side, namely marketing activities and the sale of units, thus covering the entire project development cycle. In this way, investors have a reliable partner who helps them quickly overcome initial uncertainty, keeping the focus on what matters most: profitability and long-term success.
Who are the main buyers of real estate in Dubai, and what does that mean for investors from Serbia who would build and sell in this market?
This market largely depends on populous countries and is extremely diversified, which makes it more resilient to individual factors affecting demand. The main buyers of real estate in Dubai come from various parts of the world: India, the United Kingdom, China, countries of the region such as Egypt, Jordan, and Lebanon, as well as buyers from Gulf countries like Saudi Arabia, Kuwait, Qatar, Bahrain, and others. Particularly active are younger-generation buyers who prefer “off-plan” models, i.e., purchasing properties during construction.
This buyer diversity means that demand spans luxury villas and premium apartments as well as mid-segment projects for families and residents. For investors from Serbia, this opens a wide range of opportunities – from luxury projects aimed at high-net-worth international clients, to residential complexes for expats and local residents. The key is for the project to be clearly positioned and adapted to the target group, as this directly influences sales speed and profitability. In this process, Kredium, with its experience in both markets and network of international partners, can provide investors with valuable insights, assist in precise buyer targeting, and ensure the optimal marketing and sales strategy.
What are the long-term prospects of the real estate market in Dubai, and what would be your advice to an investor now considering taking the first step toward this market in terms of construction?
The long-term prospects of Dubai’s real estate market remain extremely attractive, but with clear changes in demand dynamics. Increasing importance is being placed on so-called boutique developers – smaller investors who focus on quality, uniqueness, and distinctive projects. This presents a great opportunity for new investors who want to make their first steps in this market.
Additionally, Dubai is expanding geographically. In parts of the city that are still less populated, particularly in areas that will gain importance with the airport relocation, land prices remain relatively affordable, while potential profit margins are very attractive for those who enter in time. This means that investors from Serbia have the opportunity to start projects suited to their capital and ambitions, with long-term growth prospects.
In this process, it is crucial to listen to the market and position correctly, as the wrong choice can be costly. Kredium, with its experience and presence in both markets, can be a strategic partner, from assessing the potential of a location and defining the optimal business strategy, to providing comprehensive support in project execution. In this way, with our help and support, investors can not only enter the Dubai market more easily but also build the foundation for sustainable and successful growth.
ABOUT MIŠA
The founder of Kredium, Miša Lazović, graduated from the Faculty of Economics and began his career at the National Bank of Serbia. His desire for further professional development and gaining an international perspective led him to the University of Oxford, where he completed an MBA program. This education represented a key turning point in his career, positioning him as an advisor to executive board members of major global corporations and financial institutions in more than ten countries and across various industries.
During his engagement with leading global strategic consulting firms such as Boston Consulting Group and Strategy&, the idea of launching his own business was born. In 2022, Kredium was founded, first starting operations in Serbia and soon expanding to the United Arab Emirates and the United States.
Today, Kredium offers a wide range of services, from free credit counseling and assistance in finding the best mortgage and cash loan offers, to the sale of apartments in both new and existing developments, as well as property rentals. In addition, the company develops various technological solutions for banks and developers, while in the Dubai market it provides support to investors in project development, from consulting and obtaining permits, through construction management, to marketing and sales.
