Why might we talk you out of the project you have in mind? The anatomy of a comparison

Most investors who come to us already have a project in mind: a friend recommended it, they came across an ad, or saw it at a fair. Our job is not to run that project down; it is to put a second column next to it.

Why there is no such thing as a "good project"

Whether a project is good depends on what it is compared with. Looked at on its own, every project seems reasonable: the price is a number, the handover is a date, the render is beautiful. The moment a comparison comes in, the question changes — what else could the same money buy?

The four columns that build the comparison

• Total cost — not the list price, but including fees.
• Time without income — how many years until handover?
• Known service charge — is the schedule in writing, or an estimate?
• Exit — if you wanted to sell this unit tomorrow, how wide is the buyer pool?

Example scenario

The left column is cheaper in figures. But waiting two extra years without income and not knowing the service charge take back part of that cheapness at signing. The right column looks expensive; in return it closes two unknowns.

The decision: which unknown are you willing to live with?

At the end of this comparison the client sometimes chooses the right column, and sometimes insists on the left — and both are legitimate. What changes is this: they now make the decision knowingly. Our job is not to make the choice, but to make its price visible.

How to price an unknown

The two unknowns in the table — service charge and handover — are not abstract. We can turn both into money:

• If the service charge is unknown: we assume the top of the band (AED 25/sqft) and run the calculation again that way. If the investment still stands in that scenario, the uncertainty is manageable.
• If handover is far off: every extra year means losing a year's rental income. In our example scenario that is about 8.5% of income — two years' difference, twice that.

Once you run these two calculations, the left column's "cheapness" has often melted away. If it hasn't, that's fine too — then it really is a better price, and we say so.

The hardest part of a comparison: emotional attachment

Becoming attached to a project because of its render, location or the person who recommended it is human. The point of building the table is not to ignore that attachment, but to make its price visible. "I love this project and I'm prepared to wait two extra years" is a completely legitimate sentence. "This project is better" is true only if the table supports it.

You can build the same table

If you have a project in mind, bring it to the consultation. On the same budget we pick two alternatives from the catalogue and fill in the four columns together. Even if you don't buy anything from us at the end of the call, you leave with a table.

Note: the table in this article is not a real client file but an indicative example. The fee and cost items we use in the comparison are based on Dubai Land Department tariffs.