Avoid These 11 Mistakes When Buying in Dubai

This week on Allsopp on Air, Dan and Marc break down one of the most transformative years Dubai’s real estate market has seen.

They reflect on the key shifts that defined 2025, from the introduction of the Smart Rental Index to Dubai’s continued move towards greater transparency and data-driven decision-making. The discussion explores how falling interest rates, currency strength, and affordability pressures shaped buyer behaviour, and why demand remained resilient despite a changing economic backdrop.

Dan and Marc also unpack the realities of the off-plan and resale markets, highlighting standout launches, the appeal of master-planned communities, and where hype began to outweigh fundamentals. They touch on ongoing supply challenges, the rise of renovation strategies, and why margins are tightening for investors.

The episode closes with the biggest mistakes and missed opportunities of the year, alongside practical lessons for navigating 2026 with more clarity and confidence.

Reflecting on 2025: A Year of Transformation

The past year witnessed substantial shifts in Dubai's property market, shaped largely by a series of economic and infrastructural changes. Dan and Marc discuss how the Smart Rental Index aimed to bring fairness to rental pricing with real-time data, benefiting both tenants and landlords. They further explain how Dubai is maturing as a global city, with increased transparency and technology driving the market forward.

Interest Rates and Buying Power

Notably, 2025 saw interest rates drop, a shift that many believed would cool off the market's seemingly insatiable appetite. However, the strength of the US dollar impacted overseas investors, while affordability remained a concern within Dubai itself. Despite rising rates, the hunger for property endured, supported by the city’s compelling capital appreciation.

Off-Plan and Resale Markets

The podcast episode takes a deep dive into Dubai's off-plan market, noting a significant uptick in transactions during 2025. With launches like Jumeirah Golf Estates Phase Two selling out rapidly, the demand for master-planned villa communities became increasingly apparent. However, not all off-plan projects were met with the same enthusiasm. Dan highlights the importance of careful consideration, warning against the overhype of certain developments.

Challenges in Supply and Renovation Trends

A critical challenge discussed in this episode is the ongoing supply constraints, particularly in the villa and townhouse segments. The rapid increase in rental and sale prices indicates a high demand that often outpaces available stock. Moreover, the conversation turns to the renovation trend, with investors eager to upscale existing properties, though Marc cautions about the narrowing margins for profit.

Looking Forward: Mistakes and Missed Opportunities

Throughout the episode, Dan and Marc reflect on the common errors made by investors in 2025, such as rushing into any available purchase and the reluctance of some to seize the right opportunities when presented. They stress the importance of informed decision-making and learning from the year's missteps.

Conclusion: Preparing for 2026

As the year closes, Dan and Marc are optimistic yet realistic about the future. They anticipate continued growth and evolving trends in Dubai's real estate market, driven by new buyers, international investments, and a robust population increase. For investors, staying informed and strategic is crucial as they navigate the year ahead.

The discussion encapsulates a year fraught with complexity yet brimming with potential, offering invaluable insights for anyone looking to invest in Dubai’s dynamic property market. Whether you are a seasoned investor or new to the arena, this wrap-up of 2025’s pivotal moments is essential listening in preparation for 2026.

For the full episode head to our YouTube channel