Dubai, known for its incredible feats of architecture and engineering, is a popular destination for real estate investors seeking quick profits through property flipping. But be careful, not everything that glitters is gold.
In order not to end up empty-handed when flipping real estate in Dubai, it is important to avoid these pitfalls.
Read the contract you are signing. Nothing is worse than signing a contract that you don’t fully understand. Read it carefully before any actions. Many buyers sign their contracts without reading them and are subsequently unable to meet their payment plans.
Note: If you have a small budget, it may be risky to engage in a flip strategy. In such cases, you may want to consider a buy-and-hold strategy to safely participate in the real estate market.
1-bedroom apartments – not always the best choice. 1-bedroom units (two-room apartments) are usually cheap and available but are often not the best flip candidates.
Note: Don’t be blinded by the broker’s false promises and pay attention to whether the promised view really exists.
Be careful when choosing a property developer. Large property developers often build too many properties at once and are currently profiting from the market situation. Very often there are strict payment plans hidden in the contracts, usually with a 20% down payment, in order to finance the volume of construction projects and benefit from cancellations.
Choose the right time to get started. The Dubai market is currently attracting many international investors, but markets do not move linearly and are subject to fluctuations. A correction of at least 20% is expected in the summer and beyond due to the oversupply of off-plan properties.
The right broker is at your side. With so many self-proclaimed “experts” in the Dubai property market, it is important to choose the right agent. The number of brokers in Dubai has increased from 14,000 in 2018 to 30,000 in 2023, and not all of them have the necessary expertise and your true interests in mind.
Note: It’s important to steer clear of brokers who are motivated by commissions and push poor investment options. Look for a contact who has a solid investment strategy, system, and long-term thinking.
When it comes to real estate flips in Dubai, there are some key mistakes that should be avoided in order to make successful investments. Make sure you have enough budget, choose the right unit, the right developer, the optimal timing, and the right agent. With this knowledge, you are well prepared to master the opportunities and challenges of the real estate market in Dubai and to invest successfully in real estate flips. Remember that careful research, a sound strategy, and professional support are the keys to success.