Dubai is one of the most exciting real estate markets in the world – strong population growth, tourism, zero income tax, and a clear long-term vision from the government. But even in a strong market, many investors still lose money or get stuck in the wrong property – not because of Dubai, but because of avoidable mistakes.
In this article, I’ll walk you through the 5 most common mistakes I see investors make, and how you can avoid them.
1. Chasing the Cheapest Ticket or Longest Payment Plan
One of the biggest mistakes is focusing only on:
“What’s the lowest entry price?”
“Which project gives me the longest payment plan?”
On paper, this looks attractive. In reality, a cheap unit in
a weak location with low demand can be:
Difficult to rent
Difficult to resell when you want to exit
A drag on your overall portfolio returns
What to do instead:
Prioritize location, demand, and exit
strategy over the “cheapest ticket”.
Ask yourself:
Who will rent this? Who will buy this from me in 3–5 years?
Look at real-life demand drivers:
metro access, schools, business hubs, beach, malls, landmarks.
2. Buying from a Brochure or a Friend’s Opinion
Many investors buy because: The brochure looks
beautiful
A friend or colleague said “this project is hot”
They saw a nice ad or influencer video on social media
But some of these units turn out to be:
Awkward layouts Low floors with noisy or blocked views
Far from the main access road or amenities
Very hard to rent or resell later
What to do instead:
Study actual floor plans, not just marketing renders.
Compare with similar projects in the same area:
Real achieved rents / Actual resale prices
/ Occupancy levels
/ Work with someone who looks at numbers and
demand, not just “nice brochure”.
3. Ignoring Developer Track Record and Service Charges
A lot of buyers stop at: “Is there a payment
plan?” They don’t check:
- Has the developer delivered on time in the past?
- What is the finishing quality in previous
projects?
- What are the service charges per sq. ft.?
- Are there ongoing maintenance or management issues?
- High service charges and average rents can quietly kill
your net ROI.
What to do instead:
- Look at the developer’s past handovers and
existing communities.
- Compare service charges to similar buildings in
the area.
- Always look at net returns after service
charges, not just gross rent.
4. Forgetting About Future Supply and Infrastructure
Some areas look cheap today – and there is often a reason:
- Large upcoming supply in a small area
- No clear infrastructure timeline
- No confirmed metro, malls, schools or hospital plans
- If you buy only because “it’s cheap now”, you may
wait many years for strong demand - or it may never reach the level you
expect.
What to do instead:
Check how many units are planned or under
construction in that district. Review government and master developer
plans for roads, metro, malls, schools, parks. Focus on areas
where infrastructure + demand + jobs are all growing together.
5. Investing Without a Clear Strategy or Exit Plan
Many investors buy like this:
“Let’s see how it goes.”
“If it doesn’t rent, I’ll just sell.”
No clear numbers, no time horizon, no exit.
This is not investing – it’s guessing.
What to do instead:
- Before you sign anything, be clear on:
- Are you buying for rental income, capital gain,
or both?
- What is your time horizon (2–3 years? 5–7
years?)
- What is your exit plan?
- Hold and rent long term
- Holiday home with part-time personal use
- Flip around handover or shortly after
- What is your backup plan if the market
slows for a period?
- A strong investment is one where you know your
scenarios before you pay the booking fee.
Final Thoughts
Dubai can be extremely rewarding for investors who:
Choose the right locations and communities
Work with serious, proven developers
Focus on real demand, not hype
Build a clear strategy and exit plan from day one
If you avoid these five mistakes, you are already ahead of a
large part of the market.
Want Help Structuring Your Dubai Investment?
If you’re planning to invest in Dubai and want
a numbers-based, realistic plan tailored to your budget and goals,
I’d be happy to help.
👉 Book a free 1:1
Dubai strategy consultation with me.
We’ll review your budget, risk profile, and time horizon, and I’ll show you
which areas and project types make the most sense for you in 2025 and beyond.