Why One Investor Says Rent First: Practical Lessons for Buying Property in the UAE

Live in Dubai before you buy: a blunt lesson from a seasoned investor

If you are researching property UAE, Ellen Mannaert’s experience is worth reading. In a profile published by The National on 31 May 2026, the Dutch-Ghanaian entrepreneur and investor shared a simple, repeatedly tested rule: rent for a year before committing capital. That advice is short, direct, and not the kind of headline many promotional brokers want you to hear. We unpack what it means for buyers, investors and expats weighing entry to Dubai’s real estate market.

Why this profile matters

Ellen Mannaert is not a commentator with a theory; she is an active investor with decades of property transactions behind her. The article records several facts that influence how we read her recommendations:

• She is 47 years old and splits time between Amsterdam and Dubai.
• She has built wealth through real estate and company exits, reporting holdings and sales that generated more than seven figures.
• She has experience holding properties for 10 to 15 years and carrying out flips.
• She rented in Dubai for a full year before buying, and she warns against off-plan purchases without preparation.
• She reports a monthly income between €100,000 and €150,000.

Those details show she has the means to take risks and the discipline to avoid impulsive moves. That combination makes her warnings about common investor mistakes worth attention.

What Mannaert’s warning means for you

Her central point to newcomers is practical and actionable. When she says many people enter the Dubai market too early and cannot sustain payment plans, she is naming a specific failure mode that we see across speculative property markets. For buyers and investors this translates into several concrete risks:

• Off-plan contracts require staged payments and carry exposure to timing and developer performance.
• Cashflow stress from missed milestones can lead to forfeiture of deposits or legal disputes.
• Cultural and procedural differences in how agents, developers and regulators operate can cause unexpected friction for outsiders.

In our analysis, that combination of cashflow risk and unfamiliar local practice is the single biggest reason to temper enthusiasm and increase preparation before buying.

Off-plan purchases: the mechanics and the common traps

Off-plan property is a prominent feature of the UAE market, and it is often marketed with attractive payment plans. The basics are simple but important to grasp:

• An off-plan purchase means you buy a unit before construction completes and pay according to a developer schedule.
• Developers typically use escrow accounts for buyer funds, but contractual terms vary and enforcement depends on paperwork.
• Completion delays, design changes and developer insolvency are the main threats to off-plan buyers.

Common traps we see and that Mannaert flagged include:

• Buyers committing early without a realistic plan to meet staged payments, then struggling with cashflow or currency moves.
• Relying on marketing materials rather than independent due diligence on the developer’s track record and financials.
• Underestimating total holding costs such as service charges, maintenance, insurance and taxation in the investor’s home jurisdiction.

If you are considering an off-plan deal, take these steps before signing:

• Insist on escrow confirmation and read the escrow terms.
• Check the developer’s portfolio for completed projects, completion dates and unresolved disputes.
• Model the worst-case payment timeline and build in stress tests for currency losses or rental vacancy during handover.

How to use the ‘rent-first’ rule effectively

Mannaert’s practical rule to rent for a year before buying is not about delaying forever; it is an observational tool to learn the market in a low-cost way. Here is how to make that approach work:

• Treat the rental period as a market research project. Track rents, agent responsiveness, community mix and service levels.
• Use the year to meet multiple agents and get local references. Agents differ widely in professionalism and contract transparency.
• Inspect sample completed units by the developer you are considering and speak to residents about ongoing costs.

Living locally for a year also helps you understand intangible factors that affect value: commute patterns, school options, hospital access and the pace of new supply. Mannaert used that year to study culture, agencies and builders before investing, which is a disciplined approach to reduce unknowns.

Vetting developers, agents and titles: a due-diligence checklist

Successful real estate investment in the UAE is as much about paperwork as it is about taste and timing. Use a structured checklist before any transaction, particularly for off-plan purchases:

• Confirm the developer’s registration, recent completion history and any public reports of disputes.
• Review the master community plan and understand the phasing of infrastructure and amenities.
• Obtain a copy of the sales contract and have it reviewed by a UAE-experienced lawyer focusing on title transfer clauses and remedies for delay.
• Verify the escrow arrangements and who controls release of construction funds.
• Check the title registration process in the emirate where you buy and the steps for transfer after handover.

Agents can be helpful but they are paid by transactions. Mannaert emphasised knowing agencies and builders before committing. That means meeting teams, checking references and asking for previous buyers’ contact details.

Financing, cashflow and payment-plan discipline

One reason investors enter trouble is mismatching their financing with developer schedules. Practical rules for buyers and investors:

• Model both base case and stressed scenarios for your payment plan. Assume delays and periods of vacancy if you plan to rent.
• Keep a cash buffer equal to multiple instalments.