Question: I keep hearing that Dubai property prices are already too high and that the best opportunities have passed. At the same time, transaction volumes remain strong and new projects are launching weekly. From a realistic investment perspective, is it too late to enter the market, or is that an oversimplification? I really want to get on the property ladder but am concerned I will be paying top dollar so to speak. PT, Dubai
Answer: This question arises at almost every stage of a property cycle, and it is rarely as straightforward as it appears. The perception that opportunity disappears once prices rise is understandable, but it oversimplifies how real estate markets function.
What has undoubtedly passed is the early recovery phase, when prices were rebounding sharply from previous lows and a rising tide that lifted almost all boats. That phase favoured speed and conviction. The current market, however, is in a more mature phase, one that rewards selectivity, patience and realism rather than urgency.
Property markets do not move uniformly. Even when prices seem to be higher, value still exists in certain locations, property types and price brackets. What changes is the margin for error. In a rising market, mistakes are often forgiven, while in a stabilising or maturing market, they are not. This is why indiscriminate buying becomes riskier, while thoughtful buying remains viable.
Investors should also distinguish between price growth and investment performance. A property does not need to double in value to be successful. Income generation, capital preservation and long-term utility often matter far more than short-term appreciation. Well-located property with strong demand tends to perform consistently, even when growth cools down.
The real danger today lies not in entering the market, but in doing so without a clear purpose, driven by fear of missing out rather than financial logic. Property rewards clarity far more reliably than timing.
To conclude, if you are buying to live in, it doesn't matter when you go ahead. However, if it is for investment purposes, do your due diligence and look for future growth indicators around the property, such as infrastructure spending on roads and/or transportation like the new Etihad Rail network or new Metro lines, for example.
Other things to consider are commercial outlets such as new malls or other attractions. These will ensure future capital appreciation and virtually guarantee good long- or short-term rental options for your future tenants.
Q: I am thinking of investing in real estate but there seems to be a strong push towards off-plan projects right now, with attractive payment plans and constant new launches. I know completed properties offer immediate rental income and certainty, but I am confused as to where to invest. What should I take into consideration before deciding? GA, Sharjah
A: This topic has become increasingly relevant as off-plan activity has intensified, often dominating market conversations, so it's not surprising that off-plan has the larger market share (around 60 per cent to 70 per cent from last year's figures).
Having said this, both off-plan and completed properties can form part of a sound investment strategy, but they are fundamentally different propositions.
Off-plan purchases typically appeal because of lower initial outlay, staged payment plans and the prospect of capital appreciation by the time of handover. When bought carefully, especially from reputable developers, in strong locations and at sensible pricing, off-plan can be effective.
However, there would be one word of caution because today’s environment requires careful consideration. The sheer number of off-plan launches means that not all these projects will deliver the same outcomes and some of their pricing already reflects optimistic future assumptions.
Completed property, on the other hand, offers immediacy and transparency. Investors can assess rental demand based on historical or present comparatives, observe market pricing, understand service charges and generate income from day one. In a market where sentiment can change quickly, this certainty is often undervalued.
The key mistake investors make is choosing off-plan simply because it is being marketed more aggressively. A better approach is to start with intent. Investors seeking income, risk mitigation or flexibility often find completed assets more appropriate. Those comfortable with longer timelines and construction risk may still favour off-plan but only when fundamentals support it.
I always advocate whether it be primary or secondary market purchases to do your due diligence to fully understand what you are about to get yourself into. In short, the decision should be strategic, not promotional. Do not be attracted by the hype, the glitz and glamour of the launches at these iconic venues that often come with entertainment, fancy models, fireworks, etc.
The opinions expressed do not constitute legal advice and are provided for information only. Please send any questions to mario@allegiance.ae
