According to industry experts, profit margins for property investors have significantly increased, particularly for those who undertake upgrades on their properties. This trend has become increasingly evident among Dubai residents who purchased real estate during the Covid-19 pandemic and in the immediate aftermath. Many of these investors are now capitalizing on the soaring property prices in the city, with reports of some individuals netting up to Dh15 million from the resale of their units.
Lewis Allsopp, chairman of Allsopp and Allsopp, noted that while a considerable number of buyers from 2020 to 2021 are opting to hold onto their investments due to the significant improvements in the market, there is also a marked increase in property flipping, especially in prime locations such as the Dubai International Financial Centre (DIFC) and Downtown Dubai. This phenomenon is primarily driven by the desire to capitalize on the current upswing in property values, as demand for high-end real estate continues to rise.
In particular, the villa communities in Dubai have seen remarkable profit margins for investors who are willing to enhance their properties. Allsopp highlighted that some investors have realized extraordinary returns, with profits reaching as high as Dh15 million in certain transactions. This trend reflects a broader confidence in the Dubai real estate market, which has rebounded strongly post-pandemic.
Additionally, the ongoing influx of expatriates and high-net-worth individuals moving to Dubai, attracted by the city’s favorable living conditions and tax benefits, has further fueled demand. As a result, property owners are increasingly motivated to upgrade their units—adding features such as modern finishes, smart home technology, and enhanced amenities—which can substantially elevate the resale value.
As the market continues to evolve, analysts predict that those who strategically invest in renovations and upgrades will likely see even greater returns. This approach not only enhances the appeal of properties but also aligns with the growing trend of buyers seeking high-quality living spaces in a competitive market. Overall, the combination of strategic upgrades and an improving economic landscape positions savvy investors to achieve substantial financial gains in Dubai’s vibrant real estate sector.
Source: Khaleej Times
