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Dubai Property Flipping Now Rare In Residential Sector

Flipping property, or quickly reselling real estate for a profit, is almost non-existent in Dubai’s residential market. Developers now require buyers to pay 30 to 50 percent upfront before reselling their units. This prevents many would-be flippers. 

In the past, people could “flip” properties they just purchased by finding a new buyer right away. But new rules aim to discourage unstable short-term investments. Developers want committed buyers who plan to live in or rent units long-term. 

As Imran Farooq, CEO of Samana Developers , notes “90% of people don’t have the intention of flipping because developers mandate large down payments that not many can afford just to resell.”

There is also simply less opportunity. With unprecedented demand for Dubai real estate, particularly after the COVID-19 pandemic, developers release new phases of projects more gradually. This lack of quick turnover means fewer chances to snap up a bargain and try to resell. 

While flipping still occurs occasionally within housing towers or villas, the action has largely shifted to commercial land, according to analysts. Vacant plots saw 300% price increases over the last two years, fueling rampant speculation. Properties worth 20 million AED are now three times that value, enticing many investors hoping to flip sites for short-term profit.

The characteristics of the Dubai Property sector have changed massively since the crash of 2008 according to Imran Farooq. “Developers have taken flipping out of the equation by imposing long-held restrictions,” he says. For ordinary homeowners and buyers looking for a stable investment or residence, the lack of ups and downs from rampant flipping has brought welcome stability.

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