Global property fund eyes luxury units in Dubai
Oman also on the wishlist for exclusive holiday portfolio
The founder of an international property fund has revealed that he is looking to add luxury units in the Gulf to the its portfolio.
Shortly after announcing its plans to seek more members from the Gulf region, Hideaways Club founder Mike Balfour has told Arabian Business: “We’re planning on purchasing property in Dubai and Oman, as both Asian and European businessmen are keen to visit this part of the world for their holidays.
“This will take place within the next twelve months, so certainly towards the back of this year and the beginning of next year. But I can’t say which properties, because I don’t know as yet. But it’s certainly on the radar.”
The Hideaways Club is now the largest club of its kind in Europe with more than 150 members and 27 solely-owned multi-million dollar luxury properties throughout Europe, Africa, Mauritius and South East Asia.
The company is now expanding its sphere of operations into the Gulf, specifically targeting expats and nationals who are looking to combine investments with exclusive access to luxury properties.
“With this economic cycle, people are looking to spend their money more carefully, and a buying a villa in the south of Spain doesn’t look quite as sensible as it might have done three years ago,” Balfour added.
“Our timing happens to be very good – property prices around the world are very much lower than they were– so we are buying properties that are in some cases 30-40 percent less than they were three or four years ago.”
Investors wishing to join the club pay from $188,000 for both a potential return on investment and a variety of holiday locations.
“It’s pretty safe investment because you’re looking at properties in different jurisdictions across the world, so if you budget for five-to-six percent annual growth in your investment, I don’t think you’ll be disappointed,” said Balfour.
“But the real benefit comes in the savings on your holidays for as long as you’re a member. If you take those savings – taken from the cost of renting an equivalent villa - and add them to your capital gain of five-six percent, I think it produces a rather nice 14 percent annual return. I think for a safe investment that you get a lot of enjoyment out of, a 14 percent return is pretty reasonable.”