BEYOND THE PRICE TAG

Exclusive interview with Tahir Majithia, Real Estate Advisor and Founder of Prime Capital

An in-depth look at buying a home in the UAE across different luxury property segments. How are consumer patterns shifting between renting and purchasing, and what are the key considerations for buyers before they commit?

We are seeing two types of buyers at the moment. A lot of people who are new to the city prefer to rent for the first couple of years, until they have settled in and worked out where they actually want to live. Once they know the answer to that, they buy. The second group already knows Dubai well and is moving here, and they tend to arrive with a much clearer idea of what they are looking for.

What both groups have in common is that they want the best of the best, and that is true across every segment. Whether someone is buying a home at AED 5 million, AED 10 million or AED 15 million, they want the best for their money. Quality, design, layouts, facilities, amenities, all of it matters a lot today. There was a time when buyers didn’t really focus on these things and a standard product would do. Now, with the kind of money people are spending, they want something genuinely different. They want the wow factor, especially in the luxury segment.

What changes as you move up the price ladder is the definition of “best.” Around the AED 5 million mark, buyers are usually weighing up location, the reputation of the developer and how the home will hold its value if they decide to sell in a few years. By the time you get into the AED 10 to 15 million bracket and above, the conversation moves on to space, privacy, the quality of the finishing and views, and how well the building or community is actually managed once everyone has moved in.

That same expectation is now shaping the rental market too. We are seeing some very high ticket size rentals, even with the conflict going on in the region. The people who are still confident in this market and want to move here want to arrive somewhere they don’t have to do anything to, homes that are specced and fitted out to the best international standards. If it is something good, tenants are willing to spend serious money on rent, and the top of the market is now well into the millions a year.

The thing that decides it in the end is value. Prices have gone up, yes, but buyers today are smart and they know exactly what they are buying. Over the last few months in particular, people want good value for their money, so there is a lot of negotiation happening, especially given the current situation. But when the value is genuinely there, buyers move quickly.

My advice to anyone about to commit is to look past the headline price. Check what the service charges are and what they actually cover, because that cost stays with you every year. Look at the developer’s track record for delivering on time and to the standard they promised. Read the payment plan and handover terms properly. Ask how easily homes in that community resell, not just what they sell for. And add up the full cost of the transaction, not only the purchase price. Those are the things that decide whether a home still looks like a good decision five years later.