LifestyleFebruary 3, 20163 min read

Where the Opportunities Are in a Quieter Market

A quieter market rewards investors who know what to look for. A guide to the segments, locations and strategies offering the best value today.

Victoria Sterling

Head of Private Clients

Specializing in family office advisory and multi-generational wealth transfer. Victoria manages relationships with 50+ UHNW families across 15 countries.

When markets are quiet, opportunities appear for investors who know what to look for. In Dubai today, with prices consolidating and developers competing for buyers, a selective approach can yield good results.

Segments with value

Completed apartments in established areas with strong rental demand.
Family villas and townhouses in communities with limited new supply.
Off-plan projects from strong developers with long payment plans.
Distressed or motivated sales from owners who need to sell.

Locations to consider

Established areas such as Dubai Marina, Downtown and JLT offer liquidity. Emerging areas near Expo 2020 and new infrastructure offer long-term growth potential.

Strategies

Income investors should focus on net yields. Growth investors may look at well-located off-plan projects. Owner-occupiers can take advantage of negotiating power.

Due diligence

Compare prices with recent transactions, check service charges, inspect buildings and review developers' records.

Avoiding mistakes

Avoid stretching finances, buying in areas with excessive supply or relying on rapid price growth.

Identifying motivated sellers

In quieter markets, some sellers need to sell more urgently than others: owners relocating abroad, investors rebalancing portfolios or developers clearing remaining stock. These motivated sellers may accept lower prices or more flexible terms. Signs include properties that have been listed for a long time, repeated price reductions or sellers who are open to quick completion. Buyers who are ready to act, with finance arranged and clear requirements, are best placed to benefit. However, a motivated seller does not make a poor property a good investment. The fundamentals of location, building quality and rental demand still need to be right for the discount to represent real value.

Our view

A quieter market is an opportunity for selective, patient investors. We help clients identify value and build portfolios that will perform over the long term.

Investment strategyOpportunitiesValue