Question: I've rented the same apartment for almost four years and have built up a really good relationship with my landlord. Last week, he told me he's thinking of selling because he feels the market has performed well over the past few years. I'm now worried that if somebody buys the apartment, they'll immediately ask me to move out, even though I'd really like to stay. I've heard so many different opinions from friends that I don't know what's actually true. Could you explain what normally happens when a rented property is sold? RW, Downtown Dubai
Answer: This is a question I'm hearing much more often lately, and fortunately, the answer is usually far less worrying than many tenants imagine.
The first thing to remember is that selling a property doesn't automatically end the tenancy. When somebody buys a tenanted property, they also take over the existing tenancy agreement. In other words, the lease continues under exactly the same terms until it expires.
Where people become confused is around vacant possession. If the new owner genuinely intends to move into the property themselves, or in some cases wishes to have a close family member occupy it, there are legal procedures that must be followed. It isn't simply a case of completing the purchase and asking the tenant to leave the following week. The reality is that if the new owner needs you to vacate, they have to give you 12 months' notice to do this. This notice must be sent officially via notary public and/or registered mail. Any other form of communication of this notice would be deemed not delivered correctly.
Many investors actively look for properties with good tenants already in place because rental income starts from day one. For an investor, there's a great deal of comfort in knowing the property is already occupied by someone who pays their rent and looks after the home.
If I were in your position, I'd simply keep communicating with your landlord and ask whether he's marketing the apartment as a tenanted investment or with vacant possession in mind. You'll often find that a straightforward conversation removes a great deal of unnecessary anxiety.
For now, I'd continue enjoying your home and avoid assuming that a sale automatically means you'll have to start packing boxes.
Q: I've spent nearly 15 years building my savings and finally have around Dh3 million that I'd like to invest in Dubai property. Originally, I had my heart set on buying one luxury apartment in a prime location, but the more I read, the more I wonder whether buying two smaller apartments in different communities might actually be a wiser decision. I don't necessarily need the rental income today, but I'd like to build something that will still be performing well 10 or 15 years from now. I'd appreciate your advice on how experienced investors usually approach this. RP, Abu Dhabi
A: I like this question because you're already thinking like an investor rather than simply a buyer. Over the years I've seen people build very successful property portfolios using both approaches. Some have bought one exceptional asset and held it for many years. Others have gradually built a collection of smaller properties that together produced a very healthy income and spread their risk across different market segments and locations.
Whenever somebody asks me this question, I find myself thinking about flexibility. Owning two properties gives you options. If one community temporarily underperforms or takes longer to rent, the other may continue producing income. If you decide to release some capital in the future, you can sell one property while keeping the other. That flexibility can become extremely valuable over time.
On the other hand, there are certain locations in Dubai where exceptional properties remain highly sought after regardless of the wider market. Buying quality has never been a bad long-term strategy.
Rather than deciding purely on the number of properties, I'd spend time looking at the communities themselves. Ask yourself where people will genuinely want to live in 10 years' time, do the research and due diligence. Ask yourself, are schools being built? Is transport getting better? Is employment nearby? Is there enough retail and leisure to support a growing population?
Good investing rarely comes from chasing the highest rental yield or the most fashionable address. It comes from buying quality property in locations where demand is likely to remain strong long after today's headlines have disappeared.
The opinions expressed do not constitute legal advice and are provided for information only. Please send any questions to mario@evadxb.com
