4 Reasons Why You Shouldn't Flip Off-Plan Properties in Dubai

Investing in Dubai off-plan properties just to flip the investment rarely makes sense, here are four reasons why.
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Intro: 00:00
Reason 1: 00:28
Reason 2: 01:08
Reason 3: 02:04
Reason 4: 02:44
Why are there successful flips?: 03:21
The Dubai Navigator is a strategy consulting firm.
We develop strategies that allow clients to relocate internationally to Dubai and the UAE, reduce their taxes, attain the know-how to analyze and navigate the Dubai property and stock markets, and secure a tax-optimized estate plan.
We are not financial advisors and never recommend any financial products or investments. Instead, we are here to provide you with the know-how and tools to perform your own analysis and make your own investment decisions.

[@princekhiz]

Great analysis

[@stephenagbi8166]

Brilliant analysis

[@VincyWise]

Great Analysis✅

[@vikastalekar2002]

Real estate is about long term investment - would not relate with bank FD which is great now but rates will go down in one year. Again real estate is part of diversified strategy. While investing we should think about price. Investment close to downtown / airport / metro in

[@LearnLanguagesforFreethe-mi6pp]

When you purchase an off-plan property for flipping with an average down payment of 50%, a decrease in the property's value at the time of completion will result in a sort of negative leverage effect. If the property is sold at delivery with a 10% reduction in real estate values, the loss on the invested capital will be over 20%.

[@masoodrazaq]

I thought off plan would compensate you for increased riskiness by selling at substantial discount to ready properties in terms or price per sqft. As these properties get delivered, their prices converge with other ready inventory. Isn’t this “margin of safety” enough to make these properties successful investments, IF you choose the right projects and reputable developers?

[@AlexFergusdotcom]

Thanks,. Could you do a video on Dubai renting vs buying (ready) villas in Dubai? We can buy a 4 bed villa for 7m AED or rent it the same one for 400k AED. Not sure what to do, especially if the market is at a peak and we would be needing a mortgage to buy.

[@MahmoudAbdelrazek]

normally investing in studios and 1 bedrooms are far more profitable than villas (when it comes to renting)

[@ikkahackinen9008]

@@MahmoudAbdelrazeknot true at all!

[@DarioForte]

This analysis lacks accuracy concerning two factors: a) Interest Rates will decrease in the next 8-10 months, and so the Bank Active Rates. b) Dubai's Population increase plan is realistic, especially for the upcoming geo-political changes. While the above, I agree with you about the fact that buyers should not trust Real Estate agents when they try to "sell" the quick flip theory. That is not going to work. What could work, instead, is Bringing the Purchase at least up to 80% of the competition then eventually evaluate resale. Or, even better, completing the handover, rent them for a couple of years (helping appreciation) and then eventually sell it if convenient. In any case: if you invest in the right location, risk will be lower.

[@mehsanm]

Enjoying the butt hurt comments from mostly real estate agents.😂 Your content is gold! Keep em coming.

[@creditiscomplicated-sm3mh]

what is the best location for airbnb business? dubai creek harbour?

[@azfar_naim]

Dubai Marina, Downtown, Business Bay

[@ikkahackinen9008]

The newest-Port Rashid Yacht and Marina

[@hmirtanvir]

Hi, Do you know your video have some issues?

[@rajking7217]

You didn't analyze the Dubai D33 and 2040 plan well; don't misguide. You are here to promote bank FDs. Don't analyze Dubai's real estate with the past; focus on future vision and population growth. Go study the D33 agenda first.

[@TheDubaiNavigator]

The 2040 vision for population growth is around 6%/y. Actual population growth as of 2024 is half that. Government visions are not to be confused with realistic forecasts. We don’t promote bank fixed deposits - in fact we don’t have any contractual/commission based relationship with any bank, just like we don’t have them with developers. All we focus on is realistic analysis - 100% independent.

[@itShahi-d]

Foolish analysis

[@TheDubaiNavigator]

Which argument(s) do you disagree with?