Finding A Good Deal In Dubai’s Real Estate Market

There are so many benefits of entering the real estate market in Dubai for property investors; it's a great return with many advantages like tax-free income, long-term residency, flexible payment plans, and many more. Even though it's a great deal, it's important to make a deal after looking at the facts and all options to know you have the best deal.

While being a great option, Dubai’s real estate market is one of the most complex and competitive markets, and you need to be able to look for a good deal and get the most benefits out of the investment you make. A good deal doesn't always mean low prices, but it can also refer to the value it has and how much that value will grow over time.

To get the best deal, you need to look past just money and how much you spend, of course, it is one of the things we will talk about and you should pay attention to it, but it's just a small part of it, it also includes the type of payment plan the investment offers and how flexible it is, the location of the property, knowing how good the developer is, and being able to get the most value for the property you invest in.

One of the factors that no one really pays attention to or even considers when looking for properties is to look for a property that is listed with a price below the market value. This isn't because the property has some fault in it, but usually, because the person who owns the property or the person in charge of selling it may have misjudged its value or was not aware of how much the going rate actually is.

How should you find these types of listings? Well, you should be looking at lists and monitoring websites on a day-to-day basis. You should also look at price in accordance to per square foot and compare it to other listings in the area, let's say that you are looking at a specific residential area and most of the 2-bedroom apartments have a market rate of being around AED 1.3M but you happen to find one that is listed to be AED 1.1M, that's something to look into.

Another sign to look for is when there are sudden alerts on some platforms where the price drops or they have some urgent sales, or even looking at listings that have been put up for quite some time now with no buyers. This means you might have more room to negotiate and bring the price down.

What is a distressed sale? Well, it means that the owner of the property needs to sell the property, and they need to sell it fast. It could be due to many reasons: relocating, financial issues, legal ownership problems, debt, etc. So these deals usually happen fast and are easy to close, and you could easily find one that's less than the going market rate.

How do you find these deals? Well, you need to look for some keywords, words like “urgent”, “must sell”, and “less than market”, they will tell you themselves from the description that the seller needs to get rid of the property fast. You can also try to find some agents that are good at finding these types of listings and try to network with those that are ahead of the game and get these listings before they go public.

A competitive market means competitive buyers, sellers, and developers alike. Dubai’s developers, especially, are highly competitive, and they need to be to keep up. To pull in more buyers, they always try to give attractive offers and special incentives that some may overlook, but they can add a lot more value to the property, especially when you look at off-plan property or property that is still undergoing construction.

Some of the offers that these developers give can include no commission and fees being dismissed or waived, which may, in terms, seem like a small amount, but it can equate to 4% of the property’s price. They can extend payment times too, especially post-handover payment plans, which can let you pay a lot less before your actual move-in. Some developers set guaranteed returns for a certain amount of time, so you know there is less risk, as you're still getting some money back. And many developers also provide full furnishing or some smart home upgrades without adding any more charges.

Some units don't get the attention they deserve, which may be unfortunate for the seller but great for someone looking to buy. These properties aren't ignored because of anything they lack, but simply because they probably weren't marketed in the best way, and the timing wasn't the best when they put them up for sale.

There are some examples of overlooked chances that you should look out for. Look for properties that have pictures that aren't the best quality and seem unprofessional, or they don't seem to have a description that is the most detailed and may be too vague. Some properties are tenanted, but their prices are low. Another great area to look at is high-rise buildings, but look at the lower floors, since the main selling point is height, the lower levels are less expensive, but they have amazing layout designs. Some apartments seem to have some issues, look-wise, but they aren't repairs or costly renovations; cosmetic changes are easy to make.

In Dubai’s real estate market, the two most important factors to consider when looking for a good deal are value and timing. These could apply to any type of property, and you can find all types of listings, whether it's a luxury villa going for 10% less than the going rate, a unit that is off-plan but has a low price in a community that is booming, and many others that we have already discussed.

The fact of the matter is, you need to keep your eyes open, do your work, and don't become impatient. If you're looking for these types of listings, they don't just fall on your lap when you need them; you need to be patient and keep a lookout. There are all kinds of opportunities out there, just know how to look for them.