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COLIFE BLOG
Unlocking the Secrets of Apartment Flipping in Dubai: Lessons from Local Investors
Dive into the world of apartment flipping in Dubai, featuring real-life case studies of investors who have mastered the art of buying, renovating, and selling properties for profit. Explore the strategies, tips, and insights shared by seasoned investors, shedding light on the lucrative opportunities available in Dubai's real estate market.
Dubai is one of the most popular places to invest and move. Every year, more and more people are interested in buying properties in Dubai. According to the Dubai Statistics Center, there were more than 133,000 property transactions in 2023, an increase of 38% compared to 2022, creating a new market in history.
For investors, Dubai property can be an opportunity to get their money back quickly. Flipping is not very popular in this city, so this is a good choice. This includes buying properties to renovate and sell quickly for a huge profit.
Dubai is one of the most popular places to invest and move. Every year, more and more people are interested in buying properties in Dubai. According to the Dubai Statistics Center, there were more than 133,000 property transactions in 2023, an increase of 38% compared to 2022, creating a new market in history.
For investors, Dubai property can be an opportunity to get their money back quickly. Flipping is not very popular in this city, so this is a good choice. This includes buying properties to renovate and sell quickly for a huge profit.
Pros and cons of flipping
Flipping is a strategy that essentially involves buying a home at a low price, repairing it, and then selling it for a profit.
When following this investment strategy, it's important to consider that renovation costs will be higher compared to purchasing a property for personal use or rental purposes. The reason is that flipping involves selecting properties in poor condition that are sold significantly below market value. For example, renovation costs for a 1-bedroom unit in a flipping project can range from $30,000 to $40,000, whereas preparing a 1-bedroom apartment purchased in good condition for rental typically costs $9,000 to $10,000.
However, investors can make profits of 16% to 25% in just six months.
The biggest risk of flipping is that an investor may accidentally buy bad property that takes too long to sell or sells for too little. But the good thing is that it's still an apartment in Dubai. You won’t lose your money. Some investors may not make big profits or anything, but they won't lose money.
When following this investment strategy, it's important to consider that renovation costs will be higher compared to purchasing a property for personal use or rental purposes. The reason is that flipping involves selecting properties in poor condition that are sold significantly below market value. For example, renovation costs for a 1-bedroom unit in a flipping project can range from $30,000 to $40,000, whereas preparing a 1-bedroom apartment purchased in good condition for rental typically costs $9,000 to $10,000.
However, investors can make profits of 16% to 25% in just six months.
The biggest risk of flipping is that an investor may accidentally buy bad property that takes too long to sell or sells for too little. But the good thing is that it's still an apartment in Dubai. You won’t lose your money. Some investors may not make big profits or anything, but they won't lose money.
Another benefit
Choosing the right location and doing the right planning can result in very good profits on resale.
If selling the property takes time, it is possible to lease it. This allows for more choice and provides added value.
If selling the property takes time, it is possible to lease it. This allows for more choice and provides added value.
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Probably the biggest plus is the return on investment, which is higher than simply renting out the apartment in Dubai. If we just buy a flat and rent it out for a year, the annual yield is usually around 8 to 12%. With flipping, the yield is higher, and the time to profit is significantly shorter. So, we typically achieve the same yield in just 5-6 months
The real success story of flipping in Dubai
In June 2023, investor made a simple request to Colife: "Buy low, sell high, and I trust you with the whole process". After crunching numbers and analyzing options, we settled on a 1-bedroom unit in the Al Arta 2 tower in The Greens area.
The goal was to transform the old property into a cozy family apartment — stylishly, qualitatively, and affordably. In just three months, the design team of Colife turned the apartment into a beautiful living space.
The investor's total expenses amounted to $292,442. And the very first potential buyer of an apartment snapped it up for $325,910. That's a 37% increase in the apartment's value.
The goal was to transform the old property into a cozy family apartment — stylishly, qualitatively, and affordably. In just three months, the design team of Colife turned the apartment into a beautiful living space.
The investor's total expenses amounted to $292,442. And the very first potential buyer of an apartment snapped it up for $325,910. That's a 37% increase in the apartment's value.
How to maximize profits
Flipping in Dubai is becoming increasingly popular, especially as there are many high-rises and old buildings in prime locations. This is the perfect time to buy it, make repairs, and sell it at a great price.
To maximize profits with flipping, you need to find a cheap apartment in Dubai in very poor condition but located in a popular area, renovate it entirely, and then sell it. Investors can make a lot of money by renting out properties briefly while they are on sale.
To maximize profits with flipping, you need to find a cheap apartment in Dubai in very poor condition but located in a popular area, renovate it entirely, and then sell it. Investors can make a lot of money by renting out properties briefly while they are on sale.
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The demand for flipping exceeds the supply in the current market. Again, this is because not every company can afford to assist clients with flipping, and even fewer companies can do it well. First, you need to find properties that are selling below market value, and then you need to carry out a significant amount of design and renovation work. Not all companies have good designers and their repair team.
Colife Dubai offers very safe and effective flipping cases for its clients, but there is something:
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The downside is that the number of flipping cases we do per year is very limited because it requires a lot of time and effort from the team. We do everything ourselves: we have brokers, professional designers, a repair crew, lawyers who help with the deal, and property management services during the selling period. Therefore, we cannot afford to take flipping cases every month. We take them several times a year, about 5-6 cases, for example. The good news is that for the coming summer, we plan to take on 5-6 clients for flipping.
Flipping is a growing investment strategy in the Dubai real estate market. Although a larger initial investment is required compared to purchasing a property to generate rental income, successful resale projects can generate much higher returns in a short period of time. However, achieving significant resale results requires careful planning, market understanding, and effective repair.
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