Resale of Real Estate in Dubai: What to Buy

What Properties in Dubai Are Best Suited for Resell

1. Branded Residences

Properties created in collaboration with world-renown brands of luxury hotels, auto, or jewellery give 60%–80% capital appreciation on handover.

Consider residences by Armani on Palm Jumeirah, by Mercedes-Benz in Downtown Dubai, or Dorchester Collection in Burj Khalifa District.

2. City Centre

There is a lack of space for construction in locations such as Dubai Marina or Downtown Dubai. Any project launched there can be the last one, making it highly lucrative for further resale.

3. Seaside Properties

Prices for units by the sea have been growing for 3 years: Palm Jumeirah has sky-high villa prices of $22,165 per m².

The new off-plan areas, for instance, Dubai Islands and Dubai Maritime City, are still affordable, but will definitely give high capital appreciation when developed.

4. Reputable Developer

If itʼs a resale of an off-plan property the new owner will more willingly buy a unit from DAMAC, Emaar, MAG, or Sobha, than from the newcomer developer.

5. Popular Size

Studios are often bought for investments. However, apartments with 1–2 bedrooms and villas with 3–4 bedrooms are commonplace among byers in Dubai.

The max ROI varies by area. For example, in Al Barari, the ROI is the highest for villas with 4 bedrooms (11.6%), while, in Dubai Hills Estate, the ROI is max for villas with 2 bedrooms (7.8%).

6. Upgraded and Designer Units

There are many units with standard renovations in Dubai, so properties with unique characteristics are more liquid: premium finishes and fixtures, European appliances, exquisite furniture, and expanded layouts. 

7. Favourable Payment Plan

The lower the amount an investor pays during construction, the higher the return on invested capital (ROIC) for resale at a later stage of construction.

For example, let's consider payment plans 30/70 and 70/30 for the same apartment sale price.

Purchase Price: $250,000

Sale Price: $300,000

ROIC at 30/70 – $50,000 : $75,000 = 66%

ROIC at 70/30 – $50,000 : $175,000 = 28.5%