Don't Get Scammed by Risky Dubai Off-Plan: The Red Flags You're Still Missing

Join Carl as he dives into the fascinating story of Senior Developer Sales Consultant Victor Lupson, a former oil trader who transitioned into the Dubai off-plan real estate market with Allsopp & Allsopp.

In this week's episode, Victor shares his journey, the challenges he faced, and what it was like stepping into the overwhelming world of real estate for the first time. He and Carl explore his shift from finance to property, what the off-plan market in Dubai is really like, and the red flags buyers are still missing when it comes to attractive payment plans and risky developers.

Whether you're a seasoned investor looking to grow your portfolio or new to the Dubai real estate market, this episode is packed with real insight and advice you won't want to miss.

A Bold Career Pivot

For a decade, Victor navigated the intense world of futures and options trading. This high-pressure background, he says, made the transition to Dubai real estate feel "stress-free" by comparison. This newfound enjoyment of his work fuels his drive and success.

Mastering the Off-Plan Market

Victor arrived in Dubai two years ago, initially overwhelmed by the market's scale. As an off-plan specialist, he offers unbiased advice across all developers, helping clients find the best opportunities even if it means steering them away from overpriced or poorly located projects. After six months, he gained confidence, understanding buyer profiles, locations, and building strong developer relationships. He’s seen a 50% price increase in one-bedroom apartments in two years, turning his initial skepticism into firm belief in Dubai's growth potential.

The Consultant's Edge

Victor views himself as a consultant, primarily advising investors. He highlights Dubai's excellent value compared to other global cities, believing the market is "just at the start of it."

When recommending projects, he prioritises cash flow, payment plans, finished quality, developer track record, and prime location. He also assesses a unit's ease of rental. Victor favors Meraas for their locations, finishes, and design, and commends Aldar for their impressive master communities.

The Reality of Launches

While off-plan sales might seem less strenuous than secondary market dealings, Victor reveals the demanding nature of new project launches. He's seen overnight queues, token systems, and intense competition for units. He strongly advises using a good broker like Allsopp & Allsopp, whose developer relationships can secure units otherwise unavailable.

Strategic Investing: Long-Term Vision

Victor cautions against promises of quick 30 to 40% flips, noting it's increasingly difficult to achieve during construction. He deems a steady 8 to 12% annual return more realistic and advises clients to secure enough cash to see their investment through to completion. He advocates for a long-term view in real estate, emphasising that the most significant returns are often made at the initial purchase and upon handover.

Abu Dhabi's Rise

Abu Dhabi's real estate market is also heating up, particularly with the news of Disneyland coming to Yas Island. Victor observed an Aldar project on Yas Island selling out within 12 hours of the announcement. He points out the significant price difference between beachfront properties in Abu Dhabi and similar ones near Disney in Orlando, suggesting vast growth potential.

Quick-Fire Advice: Best Launches: The Acres by Meraas, Rove Towers Investment Strategy: Long-term rental Yields: Short-term rentals offer better yields Location: Dubai Property Type: Villa Community Budget Advice (AED 1M-2M): AED 1 million gets studios in good rental areas; AED 2 million can secure a nice apartment in a master community. His top advice: stick to master communities managed by reputable developers Recommended Project: Verdes and upcoming apartments in The Oasis

For those interested in the Dubai commercial real estate market please reach out to our experts now.

For the full Taking Care Of Business podcast episode head to our YouTube channel