Why I won't be buying property in Dubai anytime soon

Summary

In this video, Michael reflects on the current state of the UAE real estate market, emphasizing caution for investors. While the market has seen strong growth in recent years, he warns that supply may soon outpace demand, leading to potential stagnation or price declines in the medium term. Michael highlights the risks of investing in the luxury real estate segment, noting the limited number of ultra-wealthy buyers. For those seeking lifestyle properties, the UAE market may still appeal, but he advises investors to carefully consider timing and alternative opportunities to maximize returns.

Takeaways

• 😀 Michael advises caution when investing in UAE real estate, especially in the luxury market due to potential oversupply.
• 😀 He believes the UAE market is overheated, and property prices are inflated, particularly in the luxury segment.
• 😀 Michael predicts that the UAE real estate market will face challenges in the coming years, with minimal or negative appreciation expected.
• 😀 He warns that the current market is not an ideal investment opportunity for most, as the timing is not favorable.
• 😀 The oversupply of new properties in the luxury and ultra-luxury segments may outpace demand, leading to potential price declines after 2027-2029.
• 😀 Michael emphasizes that many real estate agents may provide overly optimistic forecasts due to their own incentives, so investors should be cautious.
• 😀 He discusses how the real estate price averages can be misleading, especially when they include high-priced newly launched properties.
• 😀 Despite the challenges, Michael acknowledges that the UAE is still attractive for those interested in a lifestyle change or relocation, not necessarily as an investment.
• 😀 He offers assistance for those interested in relocating to the UAE, including connecting them with realtors and helping with residency processes.
• 😀 Michael encourages investors to explore other global real estate markets for better opportunities and mentions his recent investments in North America.
• 😀 Overall, Michael maintains that the UAE real estate market is not collapsing but advises against expecting significant returns from real estate investments in the near future.

Q & A

What is Michael's view on the current UAE real estate market?

Michael believes that the UAE real estate market is currently in a phase where there is a lot of hype, but this is driven by pre-sales and not necessarily reflective of the market’s true value or performance.

What does Michael mean by 'equivalent units' in the real estate market?

Michael refers to 'equivalent units' as a more accurate measure of real estate performance. He suggests that simply tracking the hype or pre-sales isn’t enough, and the real value should be based on actual units sold and occupied.

What type of real estate investments does Michael prefer?

Michael is focused on high-quality deal flow and looks for opportunities both in the UAE and internationally, especially in North America. He seeks properties with genuine investment potential rather than speculative or hyped-up deals.

How does Michael help people interested in UAE real estate?

Michael offers assistance by connecting potential investors with realtors in the UAE. He also helps people navigate the process for acquiring residency in the country.

Does Michael believe now is a good time to invest in UAE real estate?

Michael is cautious and suggests that while there may be opportunities, the current market is influenced by pre-sales and speculative hype. He advises potential investors to approach with careful consideration.

What does Michael suggest as an important consideration when buying real estate?

Michael stresses that it’s important to evaluate real estate investments based on tangible metrics, such as equivalent units and actual sales, rather than being swayed by hype or market trends driven by pre-sales.

What additional assistance does Michael offer to potential real estate investors?

Apart from helping with connecting investors to realtors and residency options in the UAE, Michael also offers guidance on real estate investment in other regions, particularly North America.

How does Michael’s recent investment in North America relate to his advice?

Michael’s investment in North America reflects his broader investment strategy, where he looks for quality real estate deals across various global markets, not just in the UAE.

Why does Michael emphasize the concept of 'quality deal flow'?

Michael emphasizes 'quality deal flow' because he’s focused on finding high-potential investments that offer real returns rather than speculative properties that are part of a market hype cycle.

How can potential investors reach out to Michael for advice or assistance?

Investors can reach out to Michael by commenting on his video or directly contacting him to inquire about real estate opportunities, whether in the UAE or elsewhere, and to get help with residency or other investment-related queries.