WHY EXIT STRATEGY MATTERS MORE THAN EVER IN DUBAI’S PROPERTY MARKET

Many investors in Dubai only focus on entry price, viewing, and the launch hype. A lot of them plan to sell it only when they have already made the purchase. Exit strategy and risks should be assessed way before the property owner wants to sell it. Ignoring resale liquidity can place the owner in negative situations even if they made a good deal when purchasing the property.

For end users, resale may feel something that is far away in their plans. But life tends to change unpredictably. Job changes, family expansion, or simply relocation can push a property sale earlier than the owners originally plan to. Units that are in over-supplied projects or poorly managed communities often stall, meeting with issues that will make the selling process longer. Even if prices may appear as if they are growing in theory, demand can weaken the available options.

For investors who are focused on flipping property, exit strategy is very important. Flipping works only when there is a strong demand with a controlled supply. In projects with a large quality of identical units, property owners become each other’s competition. This drags the prices down and prolongs the process of selling. Delays consume the profit via added charges, mortgages, and the vacancy periods.

When it comes to long term rental investors, resale liquidity still plays a major role. If the rental yields drop or the owner’s circumstances change, selling becomes an option, in some cases rather urgent. Property with common layouts, lower floors, or buildings charging higher service charges often end up struggling on the resale.

The reputation of the community too plays a big role in selling. Buyers in the present day look beyond just the location. They are interested in maintenance, association rules, parking availability, noise-levels, and rental policies. All of these factors affect the resale demand directly or indirectly. A unit that is perfectly placed will still underperform if the community amenities don't accommodate the buyers’ needs.

The solution for this issue is simple but mostly ignored. When buying a property, you should ask the right questions. How many units with the similar layouts are in the building? What are the resale stats? Are listings in the project moving? How does this specific unit differentiate me?

In Dubai’s real estate market, smart property investment is not only about how you buy a property. Also about how comfortably you can exit when required.