Dubai
“If someone tells you you will be a billionaire in a few months without hard work, it is almost always a scam,” warns real estate developer Péter Zentai, in response to the hype surrounding Dubai’s property market. Péter Zentai, owner and CEO of Idom Group and Nádor Group, says that behind the glossy marketing materials and attractive returns lie serious risks.
“Many people are throwing away their family silver in the desert,” he says, emphasizing that billions of forints are being siphoned out of Hungary — capital that could otherwise support the domestic economy.
Marketing campaigns promoting Dubai real estate promise dazzling numbers: 30–100% value appreciation during construction, zero taxes, and high rental yields. Online platforms are flooded with listings for developments set to be completed by 2027–2028. But are these fairy-tale profits realistic? “I would be extremely cautious with such tempting offers,” Péter Zentai told Index. “They are all based on assumptions. No one can predict how much property prices will rise in the coming years.” And that, he says, is just the tip of the iceberg.
“There are more than 15,000 real estate agents working in Dubai — all with one goal: to sell everything,” Zentai explains. The biggest developers are Chinese, Indian, Turkish, or Arab giants with vast resources — far beyond the reach of Hungarian firms.
But beyond the competition, Zentai says the trend of Hungarian money flowing into Dubai is macro-economically damaging.
If Hungarian citizens invest their money in Dubai, our own national programs will never succeed. There simply will not be enough capital left at home,”
he warns.
He specifically references Hungary’s Otthon Start (Home Start) Program, which offers 3% mortgage loans to local families. Zentai estimates HUF 10–100 billion (EUR 25.5 million – 255 million) has already left Hungary for Dubai real estate.
A well-intentioned Hungarian investor would not be enriching the already wealthy Arab world — they should invest at home, building their children’s future here,”
he says.
Zentai confirms that MLM-style (multi-level marketing) schemes have become common in the sales of Dubai real estate. Vulnerable individuals — especially those in financial difficulty — are often targeted.
He breaks down the numbers: selling a HUF 100 million (EUR 255,000) property earns agents a 1.5–2% commission, of which the agency typically takes half. That means agents must extract HUF 100 million worth of Hungarian capital just to earn HUF 500,000 (EUR 1,275).
The real problem is that this money does not stimulate our economy or contribute to our tax base,” he says. I would much rather pay a commission to anyone who brings an Arab or Asian investor to Budapest to buy property — that is how we protect what is Hungarian,”
he says.
He criticizes agents who market Dubai properties in Hungarian, to Hungarian clients, from offices opened in Budapest — often with misleading information. Some even use stolen customer databases, raising serious data privacy concerns.
One of the most overlooked but critical issues in Dubai real estate is the nature of ownership rights.
Freehold means you own the property and land permanently. Leasehold means the land always belongs to the government or another owner,”
explains the expert.
In many areas of Dubai, only leasehold purchases are available — meaning buyers may have to pay rent on the land for life, with unpredictable costs.
If you buy a villa on leasehold land, you might be paying rent forever — and you will not even know how much it will cost in the future.”
He also notes a cultural divide: in Asia and the Middle East, rebuilding from scratch is often part of the value system, while in Hungary, ownership is sacred, with properties intended to be passed down to children and grandchildren.
Zentai is blunt when asked about legal recourse for Hungarian buyers in Dubai:
If you go up against an Arab developer or bank, you will have almost no legal protection,”
he says.
He cites several Hungarian acquaintances who never received occupancy permits, leaving the ownership status of their properties legally unresolved for years.
Photo: Facebook/Biggeorge Property
Dubai’s zero tax promise is also not guaranteed long-term:
There is no guarantee the tax system will not change in two to three years,”
he warns.
Even though this could damage investor confidence, Dubai may have to raise taxes, especially if geopolitical tensions ease and foreign investors return home. Meanwhile, Hungary already offers progressive tax relief on real estate sales, with zero personal income tax on sales after five years.
Beyond financial risks, Zentai points to climate concerns:
It is a desert for a reason — and the weather is only getting worse.”
He shared a recent photo from a friend in Dubai showing 67.5°C (153.5°F) measured on a terrace. He notes that from May to September, the city is virtually uninhabitable, with sea temperatures nearing 40°C.
During the summer, even many locals move to Europe, making it difficult to rent out properties in the hottest months.
Budapest, Photo: Pexels
Zentai urges a more rational, data-driven approach to investing:
Use common sense. Look at climate data, political and economic stability before making decisions.”
For those still interested in investing abroad, he recommends Western Europe — where ownership is clear, legal protections exist, and properties can be passed down for generations.
I would rather stay in Hungary — or at least in Europe. We are Europeans, after all.”
Overall, he is optimistic about Hungary’s property market. His group offers Budapest homes at HUF 1.49 million (EUR 3,800) per square meter under the Otthon Start Program. “Budapest has outstanding fundamentals. We are on the cusp of a major leap forward,” he says. “Our commitment is to provide thoughtfully designed, high-quality, and affordable homes in prime locations.”
He concludes with a final caution:
Many young people are jumping on the Dubai trend train. But I believe in careers built on real work — not in fairy tales of faraway fortunes.”
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Via Index; Featured image: Pixabay
The post Real Estate Developer Warns against Dubai Property Hype appeared first on Hungary Today.
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