Investors should weigh entry prices, rental demand and exit prospects before buying UAE property.
The UAE property market continues to attract investors, but rising prices do not necessarily translate into strong returns. Buyers need to evaluate a property’s location, pricing and long-term prospects before making a commitment, says Clint Khan, Founder and CEO of Realtor Signature Properties.
“Four years ago, buying early in the right Dubai community could itself create significant upside. Today, investors need to be more selective,” he says.
Khan advises investors to assess entry prices, actual rental demand, future supply, service charges, infrastructure and the developer’s track record. They should also consider who is likely to rent or buy the property when they decide to sell.
Dubai’s average gross residential rental yield is currently in the mid-7 per cent range, according to Khan. However, he cautions investors against treating this figure as a guaranteed return.
“I would never promise a client a standard ROI. The real return is what remains after costs and what your property is worth when you eventually exit,” he says.
Choosing the right community
For buyers seeking properties that meet their family’s needs while offering investment potential, Khan recommends considering both established communities and developments positioned for longer-term growth.
“For established family living, Dubai Hills Estate remains one of the communities we like because schools, healthcare, parks, retail and connectivity already create genuine end-user demand,” he says.
For families planning for the longer term, he points to The Valley by Emaar. Al Ghadeer Gardens by Aldar, located between Dubai and Abu Dhabi, is another community he considers worth exploring, given its strategic location and planned family infrastructure.
In Abu Dhabi, Hudayriyat Island offers a different proposition, with a premium lifestyle focus built around sport, education and long-term destination development.
However, Khan cautions against assuming that every property in a sought-after community represents a sound investment.
“We don’t believe in naming a ‘best project’ because the best investment depends on the buyer,” he says.
“But even within a great community, we would not recommend every project or every unit. Entry price matters.”
What first-time buyers should consider
Khan advises first-time buyers to establish their objectives before beginning their property search. A purchase intended to generate rental income may require a different approach from one aimed at providing a family home or building long-term wealth.
“Don’t start by asking, ‘What should I buy?’ Start by asking, ‘Why am I buying?’” he says.
Buyers should then examine comparable transactions, realistic rental income, service charges, future supply, the developer’s track record and the total cost of acquisition.
He also warns against rushing into a purchase because of sales incentives or claims that a property is about to sell out.
“Never buy simply because someone tells you it is the ‘last unit’,” he says.
“A good investment should still make sense after you remove the payment plan, incentives and marketing.”
Advice beyond the transaction
At Realtor Signature Properties, Khan says the focus is on understanding each client’s needs before recommending a property.
“Our process starts with the client, not the project. We understand their budget, family, workplace, children’s education, investment horizon and residency plans before recommending property,” he says.
The company compares developers, communities, prices, rental potential, future supply and exit opportunities. For eligible investors, it also provides guidance on property investment options linked to the UAE Golden Visa.
Its support extends from property selection and negotiation to documentation, financing, purchase and handover.
Khan says buyers need advice that goes beyond presenting available properties, particularly when determining whether a purchase aligns with their financial and personal goals.
“At Realtor Signature Properties, we don’t want to sell everything. We want to select what is worth buying,” he says.
He adds: “Today, access to property is easy. Good advice is not. A broker can show you what is available. An adviser should be able to tell you what to avoid. That is where we believe our value lies.”
