Dubai’s ultra-luxury property market has seen an incredible surge this year, and flipping villas has become one of the hottest strategies for investors.
Tom Rees, Platinum Agent at Espace Real Estate, joined Dubai Eye 103.8FM’s Business Breakfast to break down the trend, revealing how high-end flips are delivering staggering profits, and what buyers need to know to succeed!
The rise of the flip
Flipping has evolved from buying off-plan properties to purchasing upgraded villas, renovating them, and selling them for a profit. “A few years ago, options for upgraded properties in areas like Jumeirah Islands were limited,” Tom explained. “Now there are 10 to 12 options at any given time, and probably one in every two clients I work with is flipping a property.”
The numbers are remarkable. Premium villas are now selling well above previous benchmarks. For example, a four-bedroom entertainment villa in Jumeirah Islands sold for AED 45 million, which was AED 10 million above the last sale of that type of villa.
Flipping – explained
Many newcomers to the market might wonder what flipping actually involves. While off-plan flipping consists in selling a property before completion, the upgraded villa flip requires a full renovation. Tom highlights the key steps:
The result is that investors can achieve profits of up to 50% within 18 months in some cases. However, success depends on the quality of renovation. Poor renovations often lead to long sales periods and minimal profit.
Who’s flipping and why
Flippers are primarily business-minded buyers who approach the property market like an investment opportunity. “These clients are very upfront about their intentions,” Tom says. “They want to see the numbers and know exactly what their returns might look like.”
Other buyers are moving to Dubai from abroad, selling their businesses, and purchasing high-end homes to move straight in. This combination of end-user demand and investor appetite keeps the market active across all segments—from the Springs to the Palm.
Flipping 101: Advice from the Platinum Agent
For those considering entering the market, Tom offers crucial guidance:
Treat it as a business: Plan your budget carefully, and always factor in potential overruns.
Hire expertise: Work with contractors who have a proven track record in high-end renovations. Cutting corners can destroy potential profit.
Focus on quality: The market demands premium finishes; anything less can hurt resale value.
Can this trend continue in the market?
Despite the boom, Tom is confident the trend will continue as long as Dubai attracts long-term residents and international buyers. “The appetite is still there. The market is active, and end-user demand ensures that flipping remains a strong investment strategy,” he confirms.
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