Question: I’ve been actively looking to invest in Dubai property over the past year, but I’m finding the pace of the market unsettling. Prices seem to change monthly, off-plan launches are constant and seem to sell out almost instantly, so I have this overwhelming sense that if I hesitate, I’ll miss out. At the same time, I worry about buying at the wrong moment. How should I or any investors navigate this current real estate market without being driven by fear or hype? DA, Dubai
Answer: This sense of unease reflects the reality of Dubai's property market rather than any individual failing on the part of investors. The market has become more competitive and those conditions can make rational decision-making more difficult than it needs to be.
The first point investors should be aware of is that activity does not necessarily mean opportunity. A frenetic market creates volume, more launches, more transactions, but it does not automatically improve the quality of what is available. Periods of heightened momentum often require more discipline.
Fear of missing out is perhaps the most dangerous feeling at the moment. Investors are regularly encouraged to believe that hesitation equals loss, seeming to forget that property is not a perishable commodity. Opportunities rarely disappear, they simply change form. Buying quickly may feel decisive, but buying correctly is what ultimately matters.
In real terms, all investors should refocus on what's important. Location always remains paramount. Areas with established demand, infrastructure and employment drivers tend to perform more predictably across market cycles than newer or speculative districts. That predictability has value, even if the entry prices appear less appealing at first glance.
Emerging markets too should have a place in investors’ minds and it's that buying risk that sometimes pays off with good capital appreciation, assuming the market continues its upward trajectory. One word of caution though - what goes up has to come down, so make sure you buy for the right reasons.
Off-plan investment requires particular attention. You should differentiate between measured risk and blind optimism. The developer's track record, construction timelines, realistic rental prospects and service charge assumptions are more important than launch prices or payment plans. The latter are often designed to encourage speed rather than reflection.
Another issue investors face today is the over-reliance on short-term capital appreciation, especially if they buy to sell on quickly. Recent price growth has led some to think that future gains are inevitable. Markets are cyclical. Sustainable investment outcomes are more commonly achieved through assets that perform acceptably across varying conditions, not those that rely on continued momentum to justify their value.
It is also worth noting that doing nothing is sometimes also a good decision. Investors often underestimate the value of patience, particularly when market sentiment becomes one-directional. Waiting for clarity, better alignment with objectives, or even a quieter market environment is not a failure of conviction; it is often a sign of it.
Successful investing in Dubai today is less about speed and more about selectivity. The challenge is not deciding on which property to go for as there are lots to choose from but filtering those opportunities from the hype. Investors who take their time, apply structure to their decision-making and resist emotional pressure tend to be the ones who remain comfortable with their choices long after the excitement has passed.
Q: I bought an off-plan apartment in Dubai a few years ago believing it would be a long-term investment, but now that handover is approaching, I’m confused as to what to do? Prices have risen but some agents are encouraging me to sell, while friends say I should hold and rent it out. I feel caught between fear of missing out and fear of making the wrong decision. How should buyers approach this moment: sell, hold or reassess? SM, Dubai
A: This is not the first time someone has asked me this question, and it usually comes up at precisely the point where emotions begin to overtake objectivity.
Off-plan buyers often spend years thinking about the eventual completion, only to find that when handover arrives, the real decision-making begins. Potential capital appreciation, optimistic advice from multiple directions and an understandable desire not to get it wrong can create unnecessary pressure. The first thing to do is to slow the process down and return to fundamentals.
The most important question to revisit is, why did you buy the property in the first place? If the original intention was as a long-term investment or for income generation, then the current temptation to sell purely because prices have risen deserves careful consideration. Short-term capital appreciation, while appealing, does not automatically justify an exit, particularly once transactional costs, agent fees and potential capital redeployment are taken into account.
For those considering holding the property and renting it out, the focus should shift to realistic rental performance, not headline yields quoted in marketing materials or from overly optimistic brokers. This means understanding achievable rent today, the likely service charges, ongoing maintenance and vacancy risk. In established or well-located areas, particularly those close to employment hubs such as Downtown, DIFC, Business Bay or Dubai Marina, long-term rental demand tends to be resilient, which can support a holding strategy even when markets soften.
Selling, on the other hand, should be a deliberate decision, not a reactive one. If the property no longer fits your financial circumstances, risk tolerance or broader plans, then crystallising gains can be sensible. What matters is not whether prices may rise further, but whether retaining the asset continues to serve a clear purpose. Holding a property without conviction often leads to poor decisions later.
One common mistake at this stage is allowing external voices, particularly those with a vested interest, to dominate the narrative. Advice recommending immediate action often only mirrors the market momentum rather than personal requirements. Property ownership is not normally a collective exercise, it must align with individual circumstances and needs.
It’s also worth remembering that the handover represents a transition, not a deadline. Buyers do not need to decide everything immediately. Better to access rental performance over the first year, understanding the building’s management quality and seeing how the wider community settles can provide clarity.
In reality, this moment should be approached with calm rather than urgency. Whether you choose to sell, hold on to the property or reassess, the correct decision is the one that remains comfortable long after the noise of well-intentioned advice has faded.
The opinions expressed do not constitute legal advice and are provided for information only. Please send any questions to mario@allegiance.ae
