The Risk of Overpromising Returns to Property Investors in Dubai

THE RISK OF OVERPROMISING RETURNS TO PROPERTY INVESTORS IN DUBAI

Written by: (Pavara Malinga)

26, February 2026

Dubai’s real estate market has delivered strong growth over the past few years. High demand, new masterplans, and attractive rental yields have brought serious attention from investors worldwide.

There’s always a risk with overpromising

It’s easy to get excited when you see headlines about record-breaking transactions or double-digit ROI percentages. Some investors enter the market expecting guaranteed appreciation, quick flips, or instant rental income. The reality, however, is more nuanced.

Returns in Dubai depend on several factors, entry price, location, demand in that specific community, service charges, and overall market timing. Not every area performs the same way. Not every launch delivers the same results.

Overpromising usually happens in competitive environments. Agents want to secure deals. Developers highlight best-case projections. Social media amplifies success stories. But when expectations are set too high, investors can face disappointment if market conditions shift, supply increases, or rental demand slows in certain segments.

Why staying updated matters.

Serious investors should keep track of weekly market insights, transaction volumes, price trends, and new supply entering the market. Updates from developers, payment plan changes, handover timelines, and even service provider announcements can influence future value and rental performance.

A responsible approach focuses on realistic projections, not exaggerated promises. Conservative rental estimates, proper cost calculations, and understanding service charges are key. Long-term strategy often outperforms short-term hype.

Professional property consultancies play an important role here. Instead of selling hype, experienced advisors analyse data, monitor developer activity, track infrastructure progress, and guide clients based on actual market conditions. They help investors understand both opportunity and risk.

Dubai continues to offer strong potential. But success in this market is not built on promises, it is built on preparation, research, and proper timing. Informed decisions always outperform emotional ones.

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