TOP-6 mistakes UK real estate investors make when investing in Dubai

Mistakes to avoid for successful Dubai real estate investments
Mistake #1
Mistake #1
1. Considering only passive income strategy and ignoring property resale strategy
The average net rental yield in Dubai is 7 to 10%, whereas buying off-plan property at the initial construction stage and selling it at the ready stage after 2 years can yield from 30% to 60%. Additionally, most developers allow investors to resell properties after paying 40-45% of its value. Profit can be 15-25% per year
Mistake #2
Mistake #2
2. Managing property on your own
If you choose to focus on a passive income strategy, hire a property management company. Entrusting your property to professionals will make your earnings entirely passive. The company will handle tenant search, all legal and tax matters, permissions, potential tenant conflicts, and also maintain your property in excellent condition
Mistake #3
Mistake #3
3. Not including income guarantee in the contract with the management company
Look for companies that guarantee your income in the contract. There are very few of them in the Dubai market; most simply promise certain earnings figures but do not guarantee them, citing market volatility. However, such companies do exist
Mistake #4
Mistake #4
4. Investing blindly without market research
Do not invest in Dubai if you don't have a reliable partner who has a deep understanding of the market. Dubai is a hype, and there is a belief that any property will bring in colossal profits. This is not true. There are areas that used to yield investors up to 15% annually 7 years ago, but now bring no more than 6%. The market changes, and you must understand its trends and forecasts
Mistake #5
Mistake #5
5. Taking out a mortgage on property
This is a big mistake, especially if you are a foreigner. The down payment in Dubai is 50%, whereas, for example, in the UK, it is 20%. Moreover, mortgage interest rates are around 4-5%, which is not a competitive advantage for Dubai compared to other markets. But there is a way out.

Most developers allow you to buy off-plan property and offer installment plans at 0%. The initial payment is usually 20%
Mistake #6
Mistake #6
6. Overestimating rental yields
Real estate agencies and management companies typically talk about 12-15% rental yield. Usually, it is not guaranteed, and they do not inform you about the costs of property maintenance and management. Choose a partner who will provide you with clear and transparent figures of your profitability
If you are interested in investing in Dubai real estate market
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We have properties suitable for any investment strategy
For all our properties at the construction stage, the developer offers 0% installment plans
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Schedule a free consultation with our investment expert
And he will help you select a strategy and investment properties according to your preferences and budget
Kristina Dubanova
Investment real estate advisor