Introduction Over the past few years, Dubai real estate has been so hot that deals can close with “a single phone call.” When short-term flippers with low investment literacy crowd into the market, prices tend to surge fast—and fall just as fast—creating a classic bubble → panic-selling cycle. Reference post on X (Twitter): Account: https://x.com/MasaNozaki2 Thread: https://twitter.com/MasaNozaki2/status/1961312652178702745 This article clarifies common misconceptions, explains the market mechanics, and lays out principles you can actually operate by. Assuming a purchase price of JPY 24,000,000 and annual rent of JPY 1,800,000: Gross yield = 7.5%. That is not the net yield. Like Japan, Dubai properties incur maintenance and other running costs, so the net yield will be lower. https://twitter.com/MasaNozaki2 — Masa Nozaki (@MasaNozaki2), Aug 29, 2025 The Risky Pitch We Keep Hearing “Because leases auto-renew, cash flow is predictable.” It sounds neat, but auto-renewal alone doesn’t guarantee CF stability. Rent revisions, vacancies, service charges, capex, and rule changes can all shift your numbers. We also see frequent confusion between: Gross yield (rent ÷ purchase price), and Net yield (after all costs and realistic vacancy). Rule of thumb: the simpler the pitch, the more cautious you should be. Change one assumption and your cash flow can break. “One Phone Call for a $1M+ Deal”: Why It’s Scary—and Also an Opportunity In a heated market, high-ticket deals can close with shallow due diligence. That’s scary, but it also creates opportunity when the cycle turns: Risk: In a downturn, short-term flippers rush for the exit, flooding supply. Opportunity: Forced selling often produces fundamentally undervalued prices. How Bubbles Turn into Panic Selling Early climb: Simple narratives (off-plan flips, pre-completion gains) attract capital. Overheat: Social proof, success stories, easy money pull in short-term flows. Trigger: Supply surge, rules/taxes, rates/FX moves, geopolitics. Unwind: Crowded exit → inventory piles up → price resets → leveraged sellers dump. Split: Prime, high-quality, rental-driven stock holds up; peripheral inventory sinks. 2027–2028: Watch the Supply Bulge A high-supply pipeline in 2027–2028 is widely discussed. When supply lands, flippers’ exits narrow—an easy spark for panic selling. This is a projection, and actual impact will depend on rates, FX, demand, and policy—i.e., a mix of factors. Principles That Actually Protect You (Checklist) Judge by earnings reality, not short-term momentum. 1) Evaluate yield on a net basis Include service charges, maintenance/capex, taxes/fees, furniture, realistic vacancy, leasing costs, PM/agency fees, and platform fees (for STR). 2) Verify the quality of rental demand Commuting nodes, schools, transit, retail. Tenant tenure & profile (tourist-only demand is volatile). Renewal clauses, break options, rent-review practice. 3) Test substitutability If a flood of similar alternatives exists at the same price point, downside pressure is high—even in good locations if new supply walls are near. 4) Know your exit mechanics Process and fees for foreign sellers, expected timing, buyer segments. Track recent closed comps and list-to-close gaps. 5) Keep leverage disciplined Model rate/FX stress (interest coverage, LTV, DSCR). Understand loan covenants and your Plan B under stress. Conclusion: Win with Design, Not Hype Auto-renewal ≠ predictable cash flow. Always value on net yield. Build for multi-factor risk (supply, rates, FX, policy). When the cycle turns, panic supply from flippers is likely—be ready to buy calmly and selectively. Keep the decision tree simple: Who rents? At what yield? For how long? Can I hold through a downturn? If you can answer those with numbers, you’re playing the right game.

Aldar Expands into Egypt If you’ve ever looked into real estate investment in Abu Dhabi, you’ve likely come across Aldar, one of the most prominent names in the region. Established in 2004 by the Abu Dhabi government and listed on the Abu Dhabi Securities Exchange since 2005, Aldar is widely regarded as the leading government-backed developer in the emirate. In December 2021, Aldar acquired approximately 85.5% of Egypt’s major real estate developer SODIC, marking a strategic expansion into the largest market in North Africa. Gulf Developers Strengthen Presence in Egypt Aldar is not alone in targeting Egypt. Emaar, the largest developer from Dubai, is already active in the Egyptian market, pushing forward major residential and commercial developments in Cairo and the New Administrative Capital. This wave of investment by Gulf-based companies highlights the growing strategic interest in Egypt as a real estate and economic hub. Why Egypt? The Largest Market in the MENA Region Egypt boasts a population of over 100 million, making it the most populous country in the MENA (Middle East and North Africa) region. The MENA market is united by shared language (Arabic) and culture (Islam), and is expected to grow into a region of 550 to 800 million people. Within this, Egypt stands out for: A young and growing labor force Aggressive infrastructure and urban development led by the government Major projects like the New Administrative Capital Surge in Foreign Investment Beyond developers, governments and financial institutions from the Gulf are also eyeing Egypt. This month, the Deputy Ruler of Sharjah paid an official visit to Egypt’s New Capital, signaling a broader UAE interest in Egyptian development. Such high-level engagements suggest that Egypt will continue to attract significant foreign capital in the coming years. Conclusion: Egypt’s Real Estate Market Gains Strategic Attention With a massive population, ambitious infrastructure projects, and increasing foreign interest, Egypt’s real estate sector is fast becoming a focal point for MENA investors. For investors seeking long-term growth opportunities in emerging markets, understanding Egypt’s strategic importance is now essential.

Introduction Just like in Japan, where certain developers have built strong reputations, Dubai and Abu Dhabi also have well-known real estate companies trusted by consumers. In this article, we’ll introduce five of the most popular real estate developers in Dubai and explore key trends such as the risks of off-plan investments and the growing value of second-hand office properties. Top 5 Popular Real Estate Developers in Dubai 1.  Emaar Properties Website: https://www.emaar.com/ Founded: 1997 Notable Projects: Burj Khalifa, Dubai Mall, Dubai Marina Highlights: Known for luxury properties and large-scale communities with a strong reputation for quality and design. 2.  DAMAC Properties Website: https://www.damacproperties.com/en/ Founded: 2002 Notable Projects: DAMAC Hills, Akoya Oxygen, DAMAC Lagoons Highlights: Specializes in luxury housing with lavish design and brand collaborations. 3.  Nakheel Website: https://www.nakheel.com/ Notable Projects: Palm Jumeirah, The World Islands, Jumeirah Village Circle Highlights: Known for iconic waterfront developments that shape Dubai’s skyline. 4.  Sobha Realty Website: https://sobharealty.com/ Highlights: A high-end developer originating from India, offering quality-controlled, in-house built homes with a focus on sustainability. 5.  Azizi Developments Website: https://www.azizidevelopments.com/ Founded: 2007 Notable Projects: Azizi Riviera, Creek Views, Mina on Palm Jumeirah Highlights: Offers a wide range of properties from affordable to luxury, popular among investors and residents. Think Twice Before Buying Off-Plan In the past, buying off-plan properties (pre-construction) could result in doubling property values upon completion. However, with current high prices and an oversupply in the market, such gains are rare. Despite this, many agents heavily promote off-plan investments—largely due to higher sales commissions. Be wary of overly optimistic pitches lacking clear risk disclosures. A cautious and informed approach is key. Why Second-hand Office Properties are Gaining Attention There is a significant shortage of office space in Dubai, especially for SMEs. Some business licenses require a physical office, and such properties are becoming increasingly competitive. In contrast to residential units—which are relatively easy to find—securing a good office space can be quite difficult. This market dynamic makes rental office properties a potentially stable and profitable investment in Dubai.

Introduction In Dubai’s real estate market, an increasing number of agents have begun promoting properties with promises like: “Once completed, this unit can be rented out on Airbnb for high returns!” But is it really that profitable? This article takes an objective look at the 2025 Airbnb market in Dubai, based on the latest data, to explore: Is Airbnb truly a high-return option? What do occupancy rates and revenues actually look like? What types of units are performing best? Dubai’s Airbnb Market: Key Figures 📊 According to February 2025 data from AirROI: Average Annual Revenue: USD 24,830 Average Occupancy Rate: 44% Average Nightly Rate: USD 233 Due to seasonal fluctuations in Dubai’s short-term rental market, further analysis by season shows: Peak Season (Dec–Jan): Monthly revenue: USD 6,227 Occupancy rate: 58.6% Nightly rate: USD 376.85 Low Season (Jul–Sep): Monthly revenue: USD 2,322 Occupancy rate: 34.35% Nightly rate: USD 232.77 What Kind of Properties Are on Airbnb? 1-bedroom units make up 56.7% of listings Combined with 2-bedroom units, this rises to 81.4% Most listings range from 70m² to 180m² in size Source: AirROI Conclusion The data clearly shows a few key takeaways: ✅ Small units dominate the market—especially 1 and 2-bedroom apartments ✅ Family-sized units (3BR+) are scarce, suggesting potential opportunity ✅ Agents claim high profits, but the reality may differ Given average prices of USD 240,000–410,000 for such units, and average gross revenue of USD 24,830/year, the gross yield is around 9%. However, considering: Airbnb management fees (typically 30%) Building management fees Utilities and maintenance The net yield likely falls to around 4–5%. This analysis is based on current data and trends, which may evolve. Still, the notion that “Airbnb guarantees high profits” seems overstated based on actual market numbers.

Introduction This article provides up-to-date insights into the real estate loan environment in Dubai, one of the world’s most dynamic property markets. With a focus on both collateral-backed loans and income-based mortgage options, we aim to help international investors make informed decisions.1. Real Estate Collateral Loans in Dubai In recent months, we’ve received numerous inquiries such as: “Can I borrow money using my property in Dubai as collateral?” The answer is: Yes, you can. Although conditions vary by bank, as of July 2025, the general terms are: Up to 60% of the property’s appraised value can be financed Interest rates are around 5–6% annually (for those without UAE residence visas) While financing is possible, the interest rate is relatively high. 2. Property Loans for Real Estate Purchases In addition to loans against owned properties, Dubai also offers real estate purchase loans based on your income level. These are commonly used when acquiring new property. Here are the typical terms (as of July 2025): Maximum loan amount: 20 million AED (subject to company revenue or individual income) Financing up to 60% of the property value (40% must be paid by the buyer) For non-residents, interest rates start from 4.24% annually ※ If you hold a Dubai visa and earn over 15,000 AED per month, the loan-to-value ratio may increase to 80%. To apply, you’ll generally need: Bank statements for the last 6 months (Japanese accounts accepted; English translation required) A valid passport Compared to collateral loans, income-based real estate loans tend to offer better interest rates, since banks consider steady income as a lower risk. 3. Summary: What the Rising Loan Usage Tells Us Dubai’s real estate market is increasingly supported by debt-based financing, not just high-net-worth cash buyers. In the UAE overall, loan usage in home purchases is about 19% In Dubai alone, this number exceeds 55% (Source: economictimes, globalpropertyguide, lymrealestate) In Q1 of 2025, Dubai recorded 9,300 residential mortgage registrations, marking a 24% year-over-year increase—a historic high. This trend shows that: “Dubai’s real estate market is no longer purely cash-driven—it’s increasingly debt-supported.” That’s not necessarily negative. However, in real estate history, markets with rapidly rising loan usage become especially vulnerable when prices start to decline. When a market enters a “reverse cycle”, the risk of loan defaults increases dramatically. This is why it is critical to monitor market signals and make cautious investment decisions. 4. Final Note If you are considering investment in Dubai real estate—or establishing a company in Dubai—it is now possible to set up a corporate entity for as low as 12,520 AED (approx. ¥500,000 JPY). For more detailed guidance or consultation, please feel free to contact us anytime.