At Sandwater, we understand that no two investment opportunities are the same. Each project is unique, and so is every investor’s journey. That’s why we don’t rely on a one-size-fits-all approach when evaluating projects. Unlike many other brokers, we never use phrases like “This is the best project in Dubai.” Such statements are misleading and oversimplify the complexities of real estate. Instead, we approach each opportunity with a tailored evaluation process, ensuring every investor receives guidance suited to their unique goals.
If you’re wondering how to evaluate real estate investments, our proven process is a great place to start. Over the past five years, we’ve refined this method based on real transactions we’ve carried out or been part of, making it both practical and reliable.
Our process is hands-on and thorough. We work closely with developers, visit project sites, and explore areas marked for future development. We also pay close attention to nearby commercial properties and analyze both the property and the surrounding area. This approach helps us identify opportunities where real value can be created.
Key Factors to Evaluate Real Estate Investments
Below, we’ve outlined some of the factors we consider during our screening process. Please note that this list is neither exhaustive nor ranked in any specific order of importance. Real estate investments are complex, and each opportunity might require focusing on different aspects. Importantly, this process has been refined through experience, ensuring it’s grounded in practical market insights.
Location
You’ve probably heard it before: location is everything. We dive into questions like:
- How close is the property to essential landmarks, transport links, or commercial hubs?
- Is the area growing or slated for significant development?
- Does the neighbourhood offer safety, accessibility, and a good quality of life?
Developer
Choosing the right developer can make or break an investment. We investigate:
- The developer’s reputation and history in the market.
- Their track record for completing projects on time and within budget.
- How previous projects have performed in terms of value retention and growth.
Date of Completion
Timelines matter. Projects delivered late can impact your financial plans. We ask:
- Are the completion dates realistic?
- What are the risks of potential delays, and how might they affect your investment?
Payment Plans
Developers in the UAE offer flexible payment plans during the construction period, with typically a down payment of 5–20%. Developers usually require 50–70% of the total purchase price to be paid before handover, during construction. The remaining balance is due upon handover. A flexible payment plan can be a game-changer. We look for:
- Schedules that align with investors’ cash flow needs.
- Any discounts or benefits for early payments.
- The resale clause, which defines when an investor can sell the property during construction. This exit strategy should not be overlooked. Developers may require investors to pay between 30–70% before allowing resale, and without a No Objection Certificate (NOC) from the developer, the investor won’t be able to sell in the secondary market.
Floor Plan
Practicality is key when it comes to layouts. We assess:
- The floor number.
- How well the space is utilized.
- Whether the design meets market preferences or offers opportunities for customization.
Comparables
We dig into market data to validate pricing. This includes:
- Researching similar properties in the area.
- Analyzing historical data to understand appreciation and demand trends.
Views
A good view can significantly boost a property’s appeal. We consider:
- Whether the unit offers scenic or iconic views.
- If future developments could obstruct the view.
Infrastructure
Connectivity and accessibility are essential. We evaluate:
- The area’s road networks, public transport options, and utilities.
- Upcoming infrastructure projects that might boost property values.
Beach Access
For beachfront developments, proximity to the water is often a key selling point. We check:
- Whether the property offers direct beach access.
- How exclusive or shared the access might be.
Amenities
Modern buyers expect more than just four walls. We look at:
- On-site amenities like gyms, pools, and recreational areas.
- The quality, maintenance, and usability of these facilities.
Contractor
The quality of construction impacts both safety and value. We assess:
- The contractor’s financial stability, reputation and experience.
- Adherence to quality standards and use of durable materials.
Size
The size of a property should align with the needs of the target market. We review:
- Whether the size meets market demand.
- How the price per square foot compares to similar properties.
Service Charges
Ongoing maintenance costs can impact long-term profitability. We analyze:
- The service charges and what they include.
- How these fees compare with similar properties.
Designer/Branding
Properties designed by well-known architects or tied to luxury brands often command a premium. We evaluate:
- Whether the design or branding adds significant value.
- How it resonates with the target audience.
Furnished/Unfurnished & White Goods
The level of furnishing and appliances can significantly influence both costs and appeal. We consider:
- The quality of any included furnishings and appliances.
- Whether the market prefers furnished or unfurnished units.
- Whether the unit includes quality white goods and appliances.
Value of Commercial Area
Commercial properties nearby can add value to residential developments. We examine:
- The availability of retail, dining, and entertainment options.
- How these spaces complement the residential offering.
Sun Exposure
Natural light is an underrated factor in property selection. We analyze:
- The property’s orientation and how much sunlight it receives.
- How this impacts energy efficiency and overall comfort.
Our Commitment to Investors
At Sandwater, we’re here to help investors make informed, confident decisions. The factors we’ve outlined above are part of our comprehensive due diligence process, but they are by no means the only considerations. Every project is unique, and sometimes, unexpected elements come into play.
If you’re ready to explore your next investment opportunity, we’d love to guide you through the process. Reach out to us for personalized advice and support—we’re here to help you succeed.
