Dubai has become a hot spot for property investors, with thousands of expats and high-net-worth individuals flocking to the city. Experts note that property prices in sought-after areas like Downtown Dubai, Palm Jumeirah, and Dubai Marina have doubled since the market lows of 2020.
Some sellers have earned up to Dh15 million from resales as the real estate market has surged over the last three years.
Louise Heatley, managing director of Exclusive Links Real Estate Brokers, highlighted the remarkable profit margins in recent property sales. She mentioned that profits have exceeded 30 to 40 per cent, with some properties doubling in value.
Notable gains have also been seen in off-plan developments, such as Tilal Al Ghaf, where properties purchased during the pandemic are now selling with a 100% return on investment.
Residents who have upgraded their properties have seen even higher profits. Heatley cited the example of Garden Homes on Palm Jumeirah, where homes bought for Dh8 to Dh10 million were refurbished and resold for over Dh50 million.
A Dubai resident for instance, bought a villa in Dubai Hills for Dh3 million in 2021. After adding landscaping, a pool, and an extra bedroom, he sold the property for Dh8 million this year, achieving a 150 per cent profit.
Most sellers are reinvesting their profits into newer developments or upgrading to more premium properties, keeping their capital circulating in Dubai’s evolving real estate market.
However, experts caution that the profit margins in villa communities are beginning to cool, with rising developer fees eating into potential gains. Experts in the field noted that flipping smaller units or lofts in prime locations still yields solid returns, though villa investments may face tighter margins.
The real estate market is also seeing growing interest in sustainable, eco-friendly homes, with buyers prioritizing energy-efficient properties. The luxury market, particularly waterfront properties and branded residences, continues to thrive.
In some prime areas, like Emirates Hills and Palm Jumeirah, buyers are even demolishing old villas and rebuilding, which shows the increasing value of land in these prestigious locations.
