DO NOT INVEST HERE ! Mohammed Zohaib | Dubai Real Estate

Summary

The speaker critically analyzes luxury real estate investments in Dubai, highlighting both positive and negative aspects. He focuses on high-end communities like Acres by Miras, Oasis by IMA, and Damac Islands, discussing concerns such as visible cables and outdated properties that may deter investors. The speaker emphasizes the importance of product selection in volatile markets, explaining how the right choices can safeguard investments. He notes that new master plans and specific floor plans, like corner units or mansions, often provide safer, more profitable opportunities, especially during market corrections.

Takeaways

• 🏙️ Ultra-Luxury communities in Dubai, like The Acres by Miras, face challenges such as unsightly and hazardous overhead cables, which limit potential investors from regions like Europe and the US.
• 🏘️ In Serena, property prices have peaked, and newer, better-designed properties entering the market may stagnate older property values.
• 🌆 Dubai is evolving and selling a luxurious lifestyle with new products entering the market, including highly competitive Villa communities with advanced amenities.
• 🏡 The Damac Islands development, especially six-bedroom Lagoon-facing villas, have strong appeal due to their innovative designs and floor plans.
• 🌍 Rukan, Serena, and Reportage Village communities have key concerns, particularly around power lines and design limitations, making them less desirable to certain investors.
• 📉 While older villa communities might be stagnating in value, new master plans like Damac Sun City and Damac Islands offer unique opportunities for early investors to make a profit.
• 🏢 Larger corner units and mansions are often more desirable and hold their value better, especially in growing areas, with better privacy and room layouts.
• 💰 Mansions with large basements and pools are particularly attractive to investors seeking homes of 8,000 square feet or larger, especially near lagoons or golf courses.
• 🔄 The speaker emphasizes caution in investing now, as some markets, like the UK, Canada, and the US, are struggling, though Dubai and Saudi Arabia are thriving.
• 🧩 In case of a market correction, investors should focus on selecting the right products to ensure long-term safety, especially those with limited supply like mansions.

Q & A

What is the main focus of the video?

The main focus of the video is to highlight the negatives of certain real estate investments in Dubai, particularly in luxury communities, and to offer a critical perspective on property selection for investors.

Why does the speaker emphasize understanding the negatives in real estate investment?

The speaker emphasizes the importance of understanding the negatives because if the assumptions behind an investment are wrong, it becomes difficult to make the right decision. Proper risk assessment ensures better investment choices.

What is the speaker's concern about properties with visible cables in luxury communities?

The speaker is concerned that visible cables in luxury communities, such as The Acres by Miras, may deter potential investors from Europe, Japan, and parts of the US and UK, as they might see it as a health hazard.

Why does the speaker think property prices in Serena have peaked?

The speaker believes property prices in Serena have peaked because new developments are coming to the market, offering better amenities and more modern designs, which may overshadow older properties like Serena.

What factors does the speaker consider important when selecting a property in Dubai?

The speaker considers factors like floor plans, location, visibility of infrastructure (e.g., cables), community amenities, future market trends, and the type of property (e.g., mansion vs. villa) when selecting a property for investment.

Why is the speaker particularly interested in Damac Islands?

The speaker is interested in Damac Islands because it revolves around the concept of Jera Islands, a successful and unique development in Dubai. The six-bed properties on the Lagoon with impressive floor plans particularly caught the speaker's attention.

What is the significance of corner units in property investment according to the speaker?

The speaker believes corner units are highly valuable because they are in limited supply, offer more privacy, and tend to be the first properties that potential buyers or renters choose, making them a more secure investment.

Why does the speaker prefer the five-bedroom properties over the four-bedroom ones in Damac developments?

The speaker prefers the five-bedroom properties because they are corner units, have all en-suite bedrooms, and provide better privacy. Additionally, the five-bed units cater to a larger market due to their design and size.

How does the speaker view the current real estate market in Dubai compared to other regions?

The speaker views the Dubai real estate market as strong and promising, especially compared to struggling markets in the UK, Canada, and Europe. The stability of the UAE Dirham, pegged to the US Dollar, makes Dubai and Saudi Arabia attractive for investment despite global market challenges.

What advice does the speaker give regarding real estate investment in case of a market crash?

The speaker advises investors to be selective about the products they invest in, as some properties can withstand market crashes and retain value, while others may experience temporary losses before recovering.

Outlines

00:00

📉 Highlighting Negative Aspects of Dubai's Real Estate Investments

In this section, the speaker emphasizes the importance of acknowledging the negative aspects of Dubai's real estate market, particularly in luxury communities like The Acres by Miras. They discuss how certain properties are affected by factors such as visible cables, which are perceived as health hazards, potentially driving away investors from regions like Europe, Japan, and the US. Examples like Serena and Rukan communities are given, where prices have peaked and concerns arise due to issues like competition from new developments and proximity to less appealing areas like Reportage Village. The speaker advises careful product selection, citing the importance of amenities, location, and the evolving nature of Dubai's market.

05:01

🏙️ Sherry Woods and Flow Plan Challenges in Dubai Communities

This paragraph focuses on various Dubai projects such as Sherry Woods by Miras, Miror Oasis by Emaar, and Nshama Town Square. While acknowledging their visual appeal, the speaker notes that these projects have smaller floor plans, which may eventually stagnate in value as new developments with improved designs come up. The speaker emphasizes the importance of considering flow plans and space usage, as these factors are crucial for long-term investment potential. The speaker highlights Damac's Sun City and its positive developments, like shared park spaces and improved contractors, as well as the potential of the upcoming island community project.

10:02

🏠 Mansions vs. Villas: The Benefits of Investing in Larger Properties

This section delves into the specific differences between mansions and villas, focusing on features such as large basements, pools, and significant plot sizes, typically seen in mansions. The speaker emphasizes the appeal of mansions, especially those located on lagoons, for investors looking for luxury properties with 8,000 sq. ft. built-up areas and larger plot sizes. They also touch on the advantages of investing early in new master plans, where first-cluster investments generally yield higher returns. The paragraph closes with advice to be cautious with product selection due to potential market corrections, using Dubai’s stable market as a contrast to more volatile regions like the UK and the US.

Keywords

💡Ultra Luxury

This term refers to high-end, premium properties or communities that offer exceptional amenities and exclusivity. In the video, the speaker contrasts areas within Dubai, mentioning how certain sections offer ultra-luxury mansions with skyline views. These properties are positioned to appeal to wealthy investors seeking prestige and comfort.

💡Cables

The video highlights the presence of exposed cables in certain areas, which are considered a negative feature by some investors. The speaker notes that this detracts from the appeal of high-end properties, as it can be seen as a health hazard and may dissuade potential buyers from regions like Europe or Japan, who expect pristine surroundings.

💡Serena

Serena is a property development in Dubai mentioned in the video. The speaker discusses how investors in Serena made profits, but he believes that prices have peaked, making it less attractive for future investments. He compares Serena to newer, more luxurious developments that offer better amenities and flow plans.

💡Flow Plans

Flow plans refer to the layout and design of the interior spaces in a property. The speaker emphasizes the importance of good flow plans, particularly in ultra-luxury and high-demand properties. He highlights that newer developments in Dubai are focusing more on optimizing flow plans to meet the needs of modern buyers and investors.

💡End Users vs Investors

The speaker differentiates between 'end users' (people who buy properties to live in) and 'investors' (people who buy properties to rent or resell). He explains that certain flow plans and features cater more to end users, while others are designed to attract investors looking for profit potential. The video discusses how both groups impact property prices and demand in Dubai.

💡Corner Units

Corner units are properties located at the corner of a block, offering more privacy and often better views. In the video, the speaker emphasizes the appeal of corner units, explaining that they are in shorter supply and usually the first to sell, making them a smart investment. Corner units are seen as more private and desirable for both buyers and renters.

💡Market Crash

A market crash refers to a sudden and significant drop in property prices due to economic instability or other factors. The speaker discusses how a potential market crash in countries like the UK or US could create investment opportunities in Dubai. He advises caution and emphasizes the importance of choosing the right products to weather such downturns.

💡Mansions

Mansions are large, luxurious homes with expansive built-up areas and premium features. The speaker distinguishes between villas and mansions, noting that mansions often have basements, pools, and larger plots of land. He suggests that mansions are a valuable investment for a specific type of buyer who desires opulence and space.

💡Demand and Supply

This economic principle is used throughout the video to explain property prices and investment strategies. The speaker highlights how properties in high demand but with limited supply, like corner units or mansions, are more likely to appreciate in value. Understanding the balance between demand and supply is key to making profitable investment decisions.

💡Payment Plans

Payment plans refer to the structured way in which buyers can pay for properties over time. The speaker praises the flexible payment plans offered by certain developers, such as monthly payments with periodic bumps. He points out that this makes luxury properties more accessible to investors, allowing them to manage cash flow while securing high-value real estate.

Highlights

Emphasizes the importance of recognizing negatives in real estate investments.

Mentions the luxury community 'The Acres' in Dubai and compares it to 'Oasis by IMA'.

Highlights potential investors' concerns about health hazards from visible cables in certain communities.

Notes how cables can deter investors from Europe, Japan, and parts of the US and UK, impacting property sales.

References the 'Serena' community and observes that its prices may have peaked.

Discusses the impact of new housing products entering the Dubai market, potentially causing price stagnation for older communities.

Points out the increasing demand for lifestyle and luxury in Dubai’s real estate market.

Mentions upcoming developments by Damac, including 'Sun City' and 'Damac Islands', which offer appealing floor plans.

Expresses preference for properties with corner units due to their higher demand and added privacy.

Highlights the popularity of houses with a bedroom on the ground floor, which caters to the large Asian community.

Mentions the absence of a maid's room in some properties as a downside.

Stresses the importance of selecting the right product in case of a market correction or crash.

Compares different mansion and villa designs, including lagoon-facing and golf course-facing properties.

Highlights the significance of getting into the first cluster of new master plans for guaranteed profits.

Mentions how Dubai and Saudi Arabia are becoming increasingly attractive real estate markets due to global economic conditions.

Transcripts

So today we're going to talk about the

negatives uh and it's very important to

emphasize on the negatives because I've

explained in multiple videos that if

your assumptions itself are wrong how do

you make the right investment for

example I'm standing I mean this is

supposed to be one of the most

Premier Luxury Ultra Luxury communities

in Dubai this is the acres by miras

we're comparing this with Oasis by IMA

the properties that I'm targeting we

have 15 million plus but do you see

those saw the cables now like for

example if I have an Ultra Luxury

Mansion but of course I'm not going to

have the Ultra Luxury Mansion over there

the Ultra Luxury Mansions will be

located on that side which is a good set

because you get a Skyline View but let's

talk about the people who invested in

this section of the community where all

the cables are there see now there I

know there are investors who consider

that a health hazard and are not so we

we straight wipe out a big portion we're

talking about Europe Japan parts of us

part of the UK you you straight wipe out

a big chunk of uh potential investors

that we can sell the property to or rent

the property to now another one I want

to show you this is that a school is

that a

hospital that's actually a villa

community so it's called rukan now

another example see now far over there

the little brown house that you can see

over there so that's called Serena by

Dubai properties no offense against

Serena but I think the prices are sort

of peaked so if you see the kind of

houses over there the people invested in

Serena of course made profit I'm not

they made profit and they're good but I

think the prices have peaked because

once in 20126 when all these new houses

come on board I told Dubai is a con it's

a 20 25 year old Market with these new

products come on board uh you have a

choice would you buy 3.5 million you get

a three bed over there would you buy for

3.5 million 3 bit over there or would

you buy float ceiling Windows nice and

bright great Community amenties the

amenities itself in nowadays the

communities are are unbelievable that's

the competition now right because people

are now what is Dubai selling Dubai

selling lifestyle Dubai selling luxury

now right next to

rukan now if it was just Serena it's

decent but Serena that's your cap right

the three beds are 3.5 4.5 5 Milli

that's your cap

right you got rukan over here I don't

want to give further comments on rukan

but I think my body language itself

expresses a lot but after rukan is my

biggest problem that's reportage Village

so again you know I don't want to get

too rash on on on on on on video but so

these are my few of my concerns that

okay you've

got rukan Serena is okay reportage

Village you got those cables so you need

to make sure they you're not over here

but today's

video is uh like for example yes there

was the Acres launch today so was a

fantastic launch but you know I was so

specific about my product

selection I only

chose the six bed I know the price is

around 15 million but that was the only

flow plan that I really enjoyed we can

have a very long discussion about why I

chose that particular flow plan but

there are two other launches now

similarly uh now I made a video saying

uh all the Villa communities in Dubai so

this comes between zone 5 and zone 6 so

Zone 1 and two being your JRA Road we're

talking about the Palm Zone 2 Shide we

between zone 5 and zone 6 you can see

Emirates Road the board over there so

that's that's basically Emirates Road

and a lot of development is happening

over here there are two new master

communities by damac um one is called

Sun City and the other one is damac

Islands now damac islands are very

interested on because it revolves around

the jera islands concept again in every

launch there are certain products that

are interesting over here the six bed on

the Lagoon had a fantastic flow plan uh

I was very excited about that particular

product now um imar osis if you want me

to give you a little more critical

opinion about that let me know in the

comments now let's head over to uh the

new launches by Dak and I'll tell you

which products I'm interested in that

Pro in that

Community okay so believe it or not this

this area is a bit funny because um uh

let me explain it to

you so um Sherry Woods by miros now

believe it or not this

technically is not one of the best

projects of miros but imagine it looks

so good despite because miras always

talks about City Walk they talk about uh

Blue Water Islands lammer so the these

are their key projects similarly

uh next was miror OS by imar again it's

not one of the best projects of of of

imar but that's the beauty of Dubai and

learning in general right they're

constantly learning from their mistakes

so now this plot behind me damac is

basically bought this

plot opposite me now from the other side

over there you can see uh nshama Town

Square so so all these you know nashama

Town Square miras and miror Oasis

especially especially nashama Town

Square miror ois Eden Sun they all had

smaller flow plans now people don't

exactly I think those small flow plans

at some stage I know investors made

profit but at some stage I think they

will sort of stagnate in prices because

these new products that are coming up

people are really working on their flow

plant because that was one of the

biggest concerns expressed by end users

and investors now let's just look at the

plot you know so that is why Sun City is

not a big Community you have only around

748 Villas in fact that Park that you

see over there is going to be like

shared between uh Sherry Woods and uh

damak Sun City so it's going to be like

damak Sun City by

sherwoods uh which I think is a very

positive sign that deac is really

getting into the big leagues they

upgraded their contractors so this is

the plot for uh sherwoods same situation

with the cables we need to be careful

about that but you can see that the

cables are on the other side of the road

it's not exactly adjacent to um to Sun

City now what I'm really excited about

is on the other side where they're going

to develop This Island community because

jera Islands the only other Island

community is J Islands now very

successful product few few Villas so

let's talk about Sun City itself now Sun

City it's a mix of like four and five

bedrooms or five bedrooms a corner four

bedrooms so we are focusing a bit on

negatives a bit bit more a bit more

critical thinking or Overlook of

properties now if you study the four

beds in damak the only sort of negative

is that there's no maze room the the

bedroom there's a bedroom on the ground

floor which is fantastic that that that

that itself that one fact bedroom on the

ground floor you're catering to a huge

Asian Community because Asians and when

I talk Asians is not just Indian

Pakistani

Bangladeshi uh Sri Lanka I'm talking

about even Japan because you know

parents get old the older parents stay

on the ground floor kids go upstairs

it's a very common tradition so you

straight hit a large segment you must

understand just India Pakistan alone the

population is is massive right so uh

that's good but there's no maid room the

last bedroom is your option whether you

want to use as a maid room or um a bed

room problem number one problem number

two now in particularly this floor plan

I observe that the powder room and the

bedroom share a common bathroom I'm just

I'm just letting it out I mean see it's

always we're doing a risk assessment

here right pros and cons right I'm I'm

just saying that this is the fact so

this is how I normally work with

investors I'm like this is the fact now

it's your call in this particular

Community I prefer the five beds because

the five beds are Corner units I I

always love Corner I've always I've

spoken several times the importance of

investing into Corner units it's uh

lesser in Supply people like it whether

you're renting a property you're selling

it it's normally the first ones that

people want to choose it's a little more

private um like even over here if you

look at those the ones in the corner

always have a certain kind of an edge

benefit it's amazing you know I mean

sherwoods miras doesn't talk about it

but it looks really nice the community

is not bad so the five bits I'm really

because all on Suite bedrooms uh powder

room is separate again there's a bedroom

on the floor so it takes all the boxes

it's called

the price point makes sense I like how

damak has structured the payment plan in

general where it's 1% every month

there's a bump every 6 months so I think

it is a decent product to invest in

damac Islands now Mansions I've made an

entire video on the importance of

mansions Now understand the product

value is it spikes a little bit but let

me take you to a mansion it's a bit dark

it's the Sun is setting but so I think

it by the time you hit the Mansion it'll

be a bit dark but let's see a mansion

I'll explain to you see the difference

between a mansion and a villa is that

Mansions normally have this nice big

basement

pool we're looking at around 8,000 foot

so there's a particular segment of

investors who want houses 8,000 ft built

up plus the plot size we're looking at

10,000 ft plus now a mansion on a

lagoon is something an investor would

really look forward to now it's your

call whether you want a mansion on a

golf course or a mansion on a lagoon but

that's a very very interesting product

so let's have a look at the Mansion so

these are the two products I wanted to

talk about majorly today a new master

plan is always exciting for me like a

new master plan if you manage to get

into the first cluster you're always

making Profit just by default now for

example Dak lagoons the people invest on

the last cluster I think are a little

stressed out right now now another

reason why I'm being so picky and so

critical you'll find a little change in

my videos like you'll find my older

videos in Dubai Creek Harbor r not from

Marina I was very optimistic I was like

yeah yes invest invest invest 2021 I was

like go go go but now I'm a little I'm

I'm treading very carefully on products

on investments because see the situation

in UK Canada Europe is

bad but it turns out to a positive for

Middle East Dubai and Saudi are looking

very good very interesting markets to

invest in so it's looking good but the

US market is not looking ideal

and the Duram is p to the dollar if the

if the market crashes if at some stage

there will be a correction you want to

invest into the right product I'm not

worried about market crash see there are

products where the market goes up or the

market goes down your your investment is

safe there are certain products so which

products will you face a loss for a

certain period And it climbs back up and

which products you're safe at that's

what you should be looking into as well

in case of a correction market crash I'm

not it's funny uh I know I'm Indian I

went to Pakistan recently and and and

Pakistan the market is really dipped at

this stage I was looking at options over

there as well I was like I enjoy a

market I'm not saying I enjoy a market

crash but in a market crash there's

always opportunity for investors so a

market crash is not a bad thing for

investors but only that you need to be

very careful with your product selection

Che got a mansion and this is why I tell

people hey you know what let's schedule

a call on the call I'll explain what

products

we can uh

choose in order to save from a market

crash which are the products now I I

can't exactly tell online hey you know

what don't invest with these products

you're going

to get a loss I don't want to take get

any issues with developers you know so

there are pros and cons that's what I'm

trying to say so now let me show you the

Mansion very very important investment

again the supply is very low into this

product we're looking at a 2% Supply so

these are factors that you to consider

demand Supply what product what price

per square foot what is the location so

these are the things that you should be

looking into let's check out the

Mansion

it I got