Ten mistakes to avoid when investing in Dubai real estate

The Dubai market is open and dynamic, which attracts very different investors. Some mistakes come up regularly.

1. Looking only at gross yield

An advertised yield takes into account neither costs, nor charges, nor vacancy. Always compare net yield.

2. Forgetting acquisition costs and charges

Registration fees, commission, mortgage, service charges: they weigh on profitability and must appear in the budget from the start.

3. Not checking the developer

Delivery record, respect of deadlines, quality of previous projects: a solid developer reduces risk.

4. Neglecting location

A poorly located property is harder to let and resell. Accessibility, transport, shops and environment matter as much as price.

5. Underestimating delivery times

An off-plan project may be delivered later than planned. Leave a margin in your financial plan.

6. Paying outside the planned framework

Payments on a new project must go through the project's escrow account. Never pay into an account not mentioned in the contract.

7. Ignoring the taxation of the country of residence

Dubai is light on taxes, but the investor's country of residence is not necessarily. An overall tax simulation avoids surprises.

8. Not planning the exit

Before buying, know how and when to resell: conditions for off-plan assignment, liquidity of the district, gap between asking price and real price.

9. Trusting advertisements without permit or verification

An advertisement must be linked to an official permit. Check the existence of the property, its title and its status.

10. Investing without a strategy

Goal, horizon, budget, risk: without a framework, every commercial offer looks attractive. A written strategy protects against impulsive decisions.

Getting support

A contact who knows the ground, compares options and asks the right questions helps avoid most of these pitfalls.

To review your project and check the conditions currently in force, book an appointment with Arzouni Properties.