Buy Low and Sell High: Buying Distressed Assets and Turning Them into Gold

Dubai’s real estate market continues to offer strong opportunities for institutional investors, family offices or other investment groups, particularly in a segment that is frequently overlooked—distressed assets—those offered below market value due to the developer or seller’s financial circumstances or urgent need to exit.

As part of our ongoing series focused on large-scale real estate capital investment in Dubai, this article will discuss what distressed assets are, how to find Dubai property below market value, and how to profit from them.

What are Distressed Assets?

Distressed properties in Dubai typically involve owners looking to liquidate quickly due to relocation, financial pressure or loan obligations. This can lead to price drops of 10 to 20 percent below comparable units in the same building or community. In a market where price is rising quickly across key areas, this entry point gives buyers a clear advantage.

Even in today’s market there are still distressed opportunities available. Some individual owners of off plan units are struggling to meet payment obligations, while others are selling ahead of handover to unlock capital.

How to Find Distressed Assets in Dubai? First, Find the Right Broker

Finding the right opportunities relies heavily on having access to the right sources. Distressed stock is rarely advertised publicly. Most transactions happen off market and are only available to investors who have strong broker relationships, fast access to capital, and a clear understanding of the market.

Strong relationships with experienced brokers are essential. Brokers who operate in this space are often the first to hear about upcoming opportunities, sometimes even before a property is officially listed or enters foreclosure. They can alert investors to deals that align with their goals, provide guidance through complex transactions, and help navigate the nuances that come with distressed assets.

Brokers typically prioritize investors who are serious, responsive, and prepared to act quickly. Those who are clear about their Dubai real estate investment criteria and demonstrate reliability are more likely to be top-of-mind when high-potential deals emerge.

For investors looking to succeed in this space, developing and maintaining strong broker relationships is a strategic advantage.

How to Profit from Distressed Assets

Fast Access to Capital & Closing

Fast access to capital gives institutional investors or family offices a critical edge. Developers or other sellers looking to offload units quickly are far more likely to accept discounted offers from buyers who can transact without delay. The ability to commit funds immediately reduces execution risk, strengthens negotiating power, and often positions these investors ahead of others still arranging financing. In competitive or time sensitive scenarios, speed is vital.

This level of agility depends on having the right capital structure in place. Whether it'smaintaining liquidity, partnering with well-capitalized investor groups, leveraging strong bank relationships, or securing mezzanine financing, access to deployable capital is critical.

Equally important is having a principal investor or lead decision-maker who can evaluate deals quickly and commit without lengthy committee processes. When the capital is ready and the investment mandate is clear, distressed opportunities can be converted into long-term value — often before the broader market catches on.

Using Bulk Purchases to Gain Favorable Terms

Along with having fast access to capital, institutional investors or family offices will find even more leverage with the ability to buy units in bulk. This is because developers are typically willing to offer inventory at a discount or more favorable payment terms, which can bolster investment ROI, cash flow, and payback period.For larger investors, bulk property deals in Dubai are the key. Bulk acquisitions represent a strategic opportunity not only to secure discounted pricing, but also to exert greater control over asset value and exit timing. By acquiring multiple units in a single transaction, family offices and institutional buyers can establish pricing benchmarks within a particular building or project, allowing them to influence perceived market value on resale.

This control can also enable phased exits, with selected units held back until market conditions peak, maximizing profits across the portfolio. The upfront discount typically achieved through bulk purchasing drives yield and overall return on capital compared to acquiring units individually at market rate.

Using Flexible Payment Structures

In the distressed real estate space, flexible payment structures can unlock significant advantages for investors, especially when dealing with ready properties where sellers are under pressure to offload quickly. In many cases, motivated sellers or distressed owners may agree to non-traditional terms, such as deferred closing dates, installment-based payments, or even short-term seller financing.

Flexible payment real estate deals in Dubai reduce investors’ upfront capital commitments, allowing them to preserve liquidity and lower their exposure early in the deal. In some scenarios, investors may secure control of the asset or even begin generating rental income before the full payment is completed. This improves internal rate of return (IRR) by shortening the period during which capital is locked without returns.

Larger investors and principal buyers benefit especially from these terms. When deploying capital across multiple assets, staggered payment schedules help optimize cash flow, reduce concentration risk, and create flexibility for reinvestment or value-add strategies like renovations or lease structuring.

Flexible deals often arise when sellers prioritize speed, certainty, or liquidity over a strict price. In such cases, creative structuring becomes a powerful tool for investors to enhance returns while minimizing risk.

Thorough Due Diligence

Thorough due diligence is also fundamental to the financial success of any acquisition. Understanding current rental values, service charges, and any outstanding liabilities across a portfolio is critical for accurately projecting returns. Renovation costs and timelines, if necessary, should be evaluated at scale, particularly if the strategy involves repositioning or upgrading multiple units for rental or resale. Larger investors must also factor in any master community guidelines or regulatory restrictions that could impact asset modification, such as limitations on structural changes or facade alterations.

Engaging an experienced advisory firm, such as Driven Properties, provides access to the local expertise and operational insight required to navigate these complexities, mitigate risks and execute with confidence.

Conclusion

While distressed deals are not common in Dubai, they are increasingly being sought out by experienced investment groups who understand their value. In a rising market, buying below today’s fair value can deliver both higher yields and re-sales; and stronger capital returns. With the right team, the right due diligence, a disciplined approach, and the ability to move quickly, these opportunities can be some of the most rewarding in Dubai’s real estate market.

If you’re considering large-scale real estate capital investment and looking for high ROI real estate in Dubai, learn more about how Driven Properties can help.