Dubai: Property owners earn Dh15 million by flipping units
Experts imply that making improvements to properties increases profit margins. Numerous Dubai residents, who purchased real estate amid and just after the Covid outbreak, are now reaping the benefits of skyrocketing real estate values in the city. Some are even making as much as Dh15 million from reselling their units.
"Many 2020-2021 investors keep their investments because the market is doing well. But, we also see a new trend: people are buying and quickly selling properties, especially in DIFC and Downtown Dubai," Lewis Allsopp, leader of Allsopp and Allsopp group, tells us.
"This is because they want to make money from the upswing in the market. In some places, sellers in villa communities made big profits. Some even made as much as Dh15 million."
Dubai's real estate costs have skyrocketed over the recent three years. A multitude of foreigners, amongst them wealthy folks, have surged into the nation. Louise Heatley, chief and main manager of Exclusive Links Real Estate Brokers observed that in certain regions the income from reselling was considerably greater. "Taking a cautious stance, gains have surpassed 30 to 40 percent," she voiced.
"But, in popular places like Downtown Dubai, Palm Jumeirah, and Dubai Marina, property values have soared since hitting a low in 2020. Similarly, in off-plan developments, Tilal Al Ghaff shines. Launched amidst the Covid-era pricing, owners are now selling with a complete return on investment."
Upgrades
Specialists indicate that individuals who improve their properties tend to enjoy higher profit margins.
For instance, Garden Homes on the Palm Jumeirah originally acquired from Dh8 million to Dh10 million underwent renovations. After the refurbishing, these properties re-emerged on the selling platform with a value exceeding Dh50 million, noted Louise.
Living in Dubai, Mansoor Ali is an exemplar of real estate savvy. He made a smart purchase in 2021, acquiring a Dubai Hills villa for Dh3 million. Over three years, he put in wonderful additions, like an appealing yard and swimming pool. An extra bedroom graced the first floor after some smart redesigning.
Fast forward to this year, he sold that villa. The price? A staggering Dh8 million. That's over 150 per cent profit in his pocket.
"For some time, I've been putting my money into UAE properties," he shared. "But the profits surprised me. Dubai Hills won plenty of folks hearts lately, primarily for its convenient location and quality amenities," he reported.
According to Lewis, there's lots of interest in these refurbished properties. "They're flying off the shelves, often sold even before official listing. And they're fetching top dollar," he remarked.
"There's a growing interest from buyers. They prefer top-notch, ready-to-live-in homes with special attributes, and not just the usual developer offerings. Many investors see this want and are honing in on refreshing properties. They aim to profit from this prosperous market section."
Trends
Folks selling their properties are making the choice to put their profits back into action. Louise mentioned, "Most sellers are putting their earnings back into the market. They are investing in fresh off-plan developments or trading up to fine residences." The ever-changing real estate scene in Dubai supplies a constant flow of opportunities. And smart investors opt to keep their money in motion."
"The upscale housing market is on the rise. Wealthy folks are on the lookout for distinctive homes. This is particularly so for homes by the water or in well-known residential areas. Pre-construction sales are leading the way in the property dealings. We've noticed an uptick in buyers knocking down villas and building new in places like Emirates Hills and Palm Jumeirah. This provides insights on the value people place on prime land."
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