After touring dozens of real estate projects across Dubai, one deal had us seriously ready to buy—not just one, but TWO apartments. But the deeper we looked, the more cracks we found beneath the glossy brochure. Here’s what made us hit the brakes.
*** Out of respect for privacy, safety, and legal boundaries, I won’t name the project or use any promotional images from the off-plan development featured in this blog.
P.S. If you’re one of the many investors—especially from Europe, like the Netherlands, Germany, or the UK—jumping into Dubai’s off-plan market right now, I hope this story gives you something to think about before committing.
If you’re curious about the bigger picture behind why so many are investing in Dubai (and why we considered it in the first place), check out our main investment breakdown here:
👉 Dubai Real Estate 2025: Boom, Bust, Or Buy? What Smart Investors Need To Know
So, without further ado—here’s our experience, straight from the ground.
Why This Project Caught Our Eye
✅ Prime location
Situated near major business hubs like the World Trade Center and Emirates Towers, the project was surrounded by top-tier hotels—voco Dubai by IHG, Millennium Plaza, Conrad Dubai, and Sheraton Grand. These hotels often charge several hundred dollars per night and are frequently fully booked during international conferences and expos. That told us everything we needed to know: this area is in demand.
✅ Consistent short-term rental demand
The location plays host to a steady calendar of global conferences and trade events, making it a hotspot for business travelers and tourists alike. For Airbnb-style rentals, that’s a strong advantage.
✅ Undervalued entry price
Units were listed ~10% below market value—a rare discount in such a prime area. That immediately caught our attention.
✅ Potential for strong appreciation
Completion was set for Q1, 2027, with projected value growth of 20%+ based on nearby past launches.
✅ Resale-friendly pricing
The price point matched what around 80% of first-time investors in Dubai typically aim for. That made a future resale feel realistic and low-friction, whether to another investor or an end-user.
✅ Flexible payment plan
We don’t need to pay everything upfront. It’s structured with 20% down, followed by 30% in stages through 2025 and 2026, and the remaining 50% only upon handover. That reduces pressure and gives us room to plan.
✅ New financing options
New mortgage options in Dubai now allow buyers to finance the remaining 50% after handover. With good short-term rental performance, we see potential to cover mortgage payments—and even generate some profit.
So let me ask you:
If you came across a deal like this, wouldn’t it catch your attention too?
Wouldn’t you be tempted?
The Offer on the Table
We were seriously impressed—so much so that we planned to buy TWO side-by-side units on the 8th floor.
The offer: €209K for a 24m² (258 ft²) off-plan studio, and just over €520K total for both units (the second one slightly larger).
Solid numbers. Stylish finishes. A developer with an impressive sales pitch and a claimed 30+ years of experience.
Our private agent even drove us to the construction site, walking us through the exact location, surrounding hotels, roads, and neighborhood dynamics. Everything looked solid!
What We Found (Red Flags & Deal Breakers)
But we’ve learned: excitement isn’t due diligence. So we hit pause, slept on it—twice—and did the legwork ourselves. That move probably saved us from a six-figure mistake. If you’re eyeing off-plan real estate in Dubai, these are the red flags you can’t afford to miss.
1. Misleading Location Claims
The brochure confidently promised the nearest metro station was a “7-minute walk.” I even double-checked with the sales agent, who reassured us—“Yes, just 7 minutes!”
At first, we visited the site by car—and sure, everything felt close. But when we walked and timed it ourselves—twice—the truth hit: it was a full 20-minute walk. And that’s with my fast Dutch walking pace.
💡 Lesson: Never trust quoted walking times. If metro access is a selling point, walk the route yourself—especially if you’re planning for short-term rentals where convenience matters.
2. Poor Unit Layout (Thanks to my friend’s sharp eye—I could’ve missed this.)
On paper, the floor plan looked sleek and modern. But a closer inspection revealed basic design flaws:
- No space for a washing machine
- Wet and dry zones (bathroom/kitchen) completely mixed up
For a developer claiming 30+ years of experience, these mistakes were concerning. It screamed “cut corners” more than “quality living.”
3. Weak Short-Term Rental Potential
The developer pushed hard on Airbnb potential—and it made sense… at first. But when we checked actual listings, occupancy rates, and unit features in the area, our optimism deflated.
How do you compete in a saturated market with:
- No terrace or spacious balcony
- No standout view
- No unique design or layout
Dubai is loaded with affordable hotels and well-reviewed Airbnbs—many better located, better equipped, and priced similarly. Our studios just didn’t stand out.
4. Poor Long-Term Rental Backup
Always have a fallback. We checked local listings, spoke with residents, and ran the numbers for long-term rental.
The result? Roughly a gross 5% return.
Not terrible, but not worth the effort, risk, and holding costs—especially when better deals exist elsewhere.
5. Flooded by New Supply
Even before handover, dozens of nearby projects were set to finish. More off-plan. More studios. More competition.
Bottom line: We’d be fighting to fill our units in a crowded market before the paint even dried.
The Final Reality Check
We were genuinely tempted. The location was solid. The payment terms were flexible. Dubai’s growth looked unstoppable. On paper, it all made sense.
We figured—even if the rental income fell short, we could still hold the units until completion in Q1, 2027 and resell for a projected 20% profit. Add in zero capital gains tax, and it looked like a low-risk, high-reward opportunity.
But then came the reality check.
Just as we were preparing to put money down, Trump announced another wild round of tariffs. The markets tanked—stocks, crypto, everything. That moment snapped us back to the bigger picture: the world is unpredictable. Even the safest-seeming bets can turn overnight.
It was also a reminder that my cash reserves aren’t infinite (see earlier blog). With limited funds left, I need investments I believe in 100%—not “maybe it’ll work” plays.
So, we walked away.
And here’s the twist: the developer came back with a better offer—8% off instead of the original 5%. If we had jumped too quickly, we would’ve locked in a worse deal. That final discount was only offered because we paused.
💡 Biggest Lesson
❌ Don’t trust developer claims, agent pitches, or glossy brochures. Walk the neighborhood, crunch your own numbers, and do your own due diligence.
❌ And no matter how tempting the deal or how fast the units are “selling out,” sleep on it. Sleep two nights if needed.
You’re not buying shoes—you’re investing six figures. Slow down, verify, and protect your capital.
What about you?
Have you ever walked away from a “sure thing” deal—or wish you had? I’d love to hear your story. Drop it in the comments 👇—I read every one
👉 Up Next: Investing in Abu Dhabi and Oman
Dubai isn’t the only game in town. In my next blog, I’ll take you inside my boots-on-the-ground journey exploring real estate investment in Abu Dhabi and Oman—two markets that surprised me with their potential, contrast, and long-term appeal.
Stay tuned. This one might change the way you look at the Gulf.
