Not All Solutions Shine: A Closer Look at the Real Estate Market in the UAE

11:20 pm  |  30.12.2023

In recent years, the real estate market in the United Arab Emirates has experienced significant growth. However, not every offer merits attention. Let’s examine the drawbacks of the race for new developments.

Why Chase Every Launch in Dubai?

The real estate market is witnessing an explosion of sales launches, with new projects being announced almost daily. September alone saw over ten significant launches.

Every developer, while introducing a new project, touts it as an excellent opportunity with a prime location and high investment potential—a perfect proposition for investors. However, reality often falls short of these claims.

READ: Ras Al Khaimah: Dubai Investment Prospects in Real Estate

Some properties are being sold at unreasonably high prices due to inflated demand. The enthusiasm surrounding projects doesn’t always align with reality, yet people rush to buy real estate driven by the fear of missing out (FOMO).

More Projects, More Deals?

Despite the increasing number of new projects and transactions, not all deals prove as profitable as anticipated. In June 2023, Dubai’s housing market witnessed an 18.8% increase in transactions, totaling 9,876, but not all of them yielded the expected returns.

The Approach of Experienced Brokers and the Significance of Timely Information

Experienced brokers typically assess the prospects of each project, considering factors such as property cost, location, developer reputation, concept, and prevailing real estate prices. Investors need to stay informed about new projects promptly, prompting the creation of our channel. Subscribe to be the first to know; we frequently share information about lesser-known projects.

READ: Time of Records and Spectacles: Dubai in Search of the Necessary Image

Sales from Developers: Agency Benefits and Client Risks

In Dubai, agencies prefer marketing new residential complexes from developers, offering clients attractive conditions: high demand, low down payments, and convenient installment plans. However, only some realize that profits from most new developments often fall short.

The highest profits are anticipated in exclusive projects like DIFC Living, where all apartments were sold within two days. Similar opportunities await in the upcoming project by Select Group in Dubai Maritime City.

Complex but Profitable Deals

Another lucrative avenue is investing in secondary market schemes, distressed assets, or buying back floors from developers. Reassignments and apartments on the secondary market with favorable terms are particularly appealing. 

While these transactions are usually more complex, they tend to be more profitable than investing in a new development with a prolonged waiting period.

Why the Secondary Market Deserve Attention? 

Although deals in the secondary market demand more effort, they can be highly attractive. Negotiations and discussions with the current owner are necessary, but investments in such properties can be significantly more profitable in the long run.

READ: New York Top 10: Real Estate Investment Opportunities

The Secret of Success: Investor Focus

Keep an eye out for investors willing to exit deals and offer properties at discounted prices. These transactions can be intriguing and profitable for investors, especially when unique opportunities in the secondary market can be identified.

If you have found a spelling error, please, notify us by selecting that text and pressing Ctrl+Enter.

Leave a comment on


Spelling error report

The following text will be sent to our editors: