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HomeNewsTop 5 main signs of an illiquid apartment in Dubai
21.10.2024 7:00

Top 5 main signs of an illiquid apartment in Dubai

Top 5 main signs of an illiquid apartment in Dubai

Yes-yes, it happens that some real estate agencies in Dubai offer their clients illiquid properties. Several times our brokers have been approached by people with similar cases. They bought an apartment, but in the end they cannot sell it. Because of such situations, there are rumours that there is a low demand for property in the Emirates. However, this is not true! It is just that the agency made a mistake and offered clients to invest in illiquid property. Whether this is due to lack of experience or due to dishonesty of the ‘specialists’ remains a mystery.


In this article we will tell you how a broker can assess a property at a glance and recognise the signs of illiquidity. And also as a bonus, we will give options of objects, for which your clients will have a queue of buyers in a few years.



Sign 1: property price is above market value

Dubai remains an attractive property investment destination due to its economic potential and market stability. However, some developers are artificially raising the price of their projects and many brokers rise to the bait. Important tip: before offering an apartment to an investor, make sure that its price is in line with the market. To do this, collect similar projects in the same location from other developers and compare prices. If the cost of the selected object is much higher than the others, and there are no obvious advantages in it, it is better to refuse this lot. Otherwise, later the investor simply will not be able to resell the purchased property profitably.


Sign 2: made up hype around the location

Newly developed areas are often very popular in Dubai. Usually, there are favourable prices and significant potential for investment. However, the cost in such locations is often inflated by 10 per cent (and sometimes more). Should we trust the hype? We don't think so.



What are the major stop factors in the neighbourhood.

  1. High levels of noise and air pollution. An apartment located near busy streets, highways or industrial facilities will be difficult to sell due to uncomfortable living conditions.
  2. Underdeveloped infrastructure. If there are no grocery shops, schools, kindergartens, pharmacies and other necessary infrastructure near the property, this can significantly reduce its attractiveness to buyers.
  3. Difficult access to public transport. An apartment's location in an area far from the centre can make it less attractive to buyers.
  4. Problems with the apartment complex as a whole. Defects in the building's engineering systems, lifts, roof or walls can significantly reduce the value of an apartment.
  5. Limited access to services and entertainment. If there are no cosy cafes, delicious restaurants, green parks for walking, sports facilities and other places for leisure activities in the area, it can have a negative impact on the attractiveness of the apartment in the future.


Sign 3: wrong choice of property area

Every good broker knows that the best resale and rental properties are studios and one-bedroom apartments. The property's location close to major attractions or the sea is also an obvious plus. However, not always such popular apartments are available at the start of sales and brokers are aware of this. Sometimes you have to wait, but a lot depends on the realtor here. Someone does not want to lose a profitable client, and someone can't wait to close the deal. So sometimes an investor lets himself be persuaded, buys a three-bedroom apartment in a business district, and then complains that he can't resell it profitably.


Brokers need to remember that the main responsibility for choosing a property lies with the specialist. And it would be dishonest, knowing the nuances, not to share them with the investor. After all, your reputation is on the line.



Sign 4: negative feedback about the developer

Nowadays, even a non-professional can check the developer. And a specialist is simply obliged to do this. There are many reviews of real people about this or that residential complex freely available on the web. Remember the proverb: ‘Forewarned is forearmed’? Inspired by it, go to the Internet for real reviews about a particular residential complex.


Sign 5: unlucky floor

If the broker has not carefully studied the floor plan when selecting an apartment, both he and the investor may get an unpleasant surprise. It is possible that the selected property will be located next to a noisy elevator or rubbish chute. It is also inconvenient to live in close proximity to public areas such as a swimming pool or gym. The constant slamming of doors will probably stress out owners over time.


Bonus: ideal projects for investment

Jumeirah Living Business Bay is a residential complex located in the popular Business Bay neighbourhood. The residence provides residents with a range of outstanding facilities including Jacuzzi, lounge area, swimming pools, outdoor terrace, private cinema, yoga and event space, beauty salon, gym, children's playrooms, wellness areas.

Handover: 4th quarter 2025

Price: from AED 13 095 000


Skyscape Avenue is a unique project located in Sobha Hartland 2 community. Important information for investors: potential increase in the cost of housing from 20%. The focus in the complex is on aesthetics and functionality. A variety of infrastructure will not let property owners get bored: they will have access to a swimming pool, yoga area, zen gardens, music studio and much more.

Handover: 4th quarter 2028

Price: from AED 1 716 594

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