Investors Shift Their Focus to Quality

The rapid gains of 2013 lifted almost all segments of Dubai's market. As growth moderates, the differences between properties are becoming more important. Investors are shifting their focus from simply buying into the market to buying the right property.

What a quality-first strategy means

• Developers: buying from companies with proven delivery and quality.
• Buildings: good construction, design and management.
• Locations: established areas with amenities and transport.
• Units: good layouts, views and natural light.

Why quality outperforms

Quality properties attract better tenants, suffer fewer voids and hold their value better in slower markets. They are also easier to sell when the time comes.

The cost of quality

Quality properties often cost more, and yields may be lower. However, the stability of income and value usually justifies the premium for long-term investors.

How to assess quality

Visit the building, inspect common areas, review service charges and speak to residents and managers. For off-plan purchases, visit completed projects by the same developer.

Avoiding false bargains

Cheaper properties in weak buildings or poor locations may look attractive on paper but can be harder to rent and sell.

A quality checklist for apartment buyers

A short checklist can help buyers compare apartments objectively. Inside the unit, check the layout, natural light, storage, condition of kitchens and bathrooms, air conditioning performance and any signs of damp. In the building, look at the lobby, lifts, corridors, gym and pool, and ask about security and maintenance. Review the service charge budget and what it covers. Ask how long the building has been completed and whether there are any ongoing disputes with the developer. Finally, check parking allocation and access to transport. Scoring several apartments against the same list makes differences in quality clear and helps buyers decide whether a higher price is justified.

Our view

In a maturing market, quality is the most reliable source of long-term returns. We help clients identify the best properties in every budget.