Dubai's off-plan property market is booming attracting investors seeking high returns. However, the risks of making poorly informed decisions are significant and often overlooked. In 2024, off-plan deals in Dubai reached 105,700 nearly double the number of resales.

While off-plan properties offer modern designs, flexible payment plans and potential growth, they are not all equal. Buyers often fall for polished brochures without understanding key factors such as the developer’s track record, market timing and future demand. Misleading marketing renders can also lead to mismatched expectations regarding the property’s size and layout.

The type of apartments in a building can impact the living experience. For example, owning a luxury four-bedroom penthouse in a building mostly with studios or one-bedrooms may not match expectations. Amenities like gyms and pools may also not cater to families if the building is dominated by singles.

Investors should also consider timelines. Completion and handover dates can differ and it may take months for defects to be resolved, especially in large-scale projects. For short-term investors looking to buy and resell, competition from developers offering similar units at competitive prices can affect resale profits. A solid investment strategy is essential. Investors should plan their cash flow, define when and to whom they’ll resell and assess the competition within the project. A well-thought-out plan ensures that investors align their expectations with market realities and avoid costly mistakes.