Finding a below-market deal is only half the job. The other half is the detail-focused process that separates properties with real investment potential from the ones that just look good on paper.
Our previous article on how Stake sources those deals covers the sourcing side: the broker relationships, real-time monitoring, and off-market access that surface opportunities before the wider market catches on.
We sat down with Alex, Stake's Head of Real Estate Transactions, to walk through what actually happens after a potential deal lands on the team's desk.
Before joining Stake, Alex spent over 7 years at Blueground, where he led the real estate and business development team and grew their Dubai portfolio to over 1,000 properties. He has more than a decade of experience in the Dubai property market, spanning leasing, sales, portfolio management, and deal sourcing.
What does "below-market value" mean?
A property is considered below-market value when its purchase price sits meaningfully lower than what comparable units in the same building have recently sold for.
Stake finds properties with prices up to 15% below market. Open the Stake app to see these properties.
Q: What's the very first thing your team looks at when a potential deal comes in?
Alex: We start with three things: the building, the location and the developer behind it.
If we can't confidently say yes to all three, the property goes no further.
We don’t guess - every answer is backed by transaction history, and market performance across the area.
Q: How do you validate whether a price is genuinely good?
Alex: Every price point is checked against comparable transactions, recent sales data and rental yield benchmarks.
A seller might call something a bargain, but if the numbers don't stack up against real market data, it doesn't move forward.
Q: Are there property types you automatically avoid?
Alex: Large vacant properties are a common one we decline. They take longer to fund and longer to find a tenant, which means investors would be waiting longer for their first dividend.
We focus on properties in high-occupancy areas with stable tenant demand and rental rates that support targeted yields.
The unit also needs to be in a rentable state, or close to it. If renovations are needed, they have to be cost-efficient and deliver a clear return on investment.
Properties with major structural issues are ruled out entirely.
Q: Once a property passes the initial screen, what happens next?
Alex: This is where Stake's process goes well beyond what most individual investors would be able to do on their own, because we have a dedicated and experienced team paired with real-time data tools.
Q: Can you walk us through the key steps?
Alex: We run a like-for-like comparison against recent transactions in the same building or area. We look at what units actually sold for, verified against Dubai Land Department records, not just what they were listed at.
Then we stress-test the projected returns across multiple scenarios:
The goal is to understand what the property will realistically deliver, not just in ideal conditions, but in tougher ones too.
From there, every property goes through a full legal review. That means title deed verification, developer NOCs (no objection certificates, which confirm the developer has no issues with the sale), service charge history, and RERA compliance.
The seller is also screened through Stake's own compliance process.
Q: Do you physically inspect every property?
Alex: Yes. A member of the team visits every property in person.
We're checking condition, layout efficiency, quality of finishes, and anything that wouldn't show up in a listing photo.
You'd be surprised how often a unit that looks great online has issues you'd only catch by walking through the door.
Q: What about ownership and legal clarity?
Alex: The ownership structure must be completely clean. No disputes, no irregularities. Any issue here is a dealbreaker, full stop.
On top of our own checks, we also commission an independent third-party valuation to cross-check the purchase price against market comparables. That gives us an additional layer of pricing validation that's separate from our internal analysis.
Q: How many properties actually make it through the full process?
Alex: The majority of opportunities that look good on paper don't get through our checks. That's the whole point. Selectivity is what protects investors, as properties with the strongest fundamentals are the most resilient to market changes.
Q: What are the most common reasons a property gets turned down?
Alex: I'd group them into five main categories:
| Rejection reason | Why it matters |
|---|---|
| Overpriced assets | The discount is based on inflated asking prices rather than verified transaction data |
| Building or developer concerns | Properties in buildings with poor maintenance records, negative reputation, or low rentability |
| High-risk legal issues | Title inconsistencies, pending disputes, or sellers flagged during compliance screening |
| Low rental returns | Rental income cannot support targeted returns after realistic expenses are factored in |
| Structural or MEP concerns | Issues that affect safety, future valuation, or resale potential |
Q: Beyond the formal criteria, are there warning signs your team watches for?
Alex: Unusual seller urgency is a big one. When someone is pushing hard for a quick close, it can indicate undisclosed problems with the unit or the building.
We also watch for inconsistent information. If the details in the listing don't match the tenancy contract, or if the seller's documents don't line up with what we're seeing on the ground, that's a red flag.
And if the developer or building has ongoing maintenance or management issues, we take a much closer look. Sometimes we walk away entirely.
A below-market price doesn't mean much if the building itself is going to create problems down the line.
Q: When Stake labels a property as "below market value," what does that actually mean in practice?
Alex: We calculate it by comparing the purchase price against transactional data and listing prices of similar units in the same building. That comparison is then cross-checked against independent third-party valuations.
If the rental yield also materially outperforms the building or area average, that further reinforces the below-market position.
Timing matters too. A deal that looked good three months ago might not be a deal today.
Q: For investors reading this, why should the qualification process matter as much as the deal itself?
Alex: Because the price a property was acquired at directly shapes your rental yield, your capital appreciation, and your eventual exit value. A property bought below market and properly vetted gives you a stronger starting position before any rental income even begins.
For fractional investors especially, this matters more than you might think. You're relying on the platform to do this work on your behalf. The rigour of that process is what separates a solid investment from a risky one.
Every property on Stake has been through this process.
Open the Stake app to browse current opportunities, starting from AED 500.
This blog is for informational purposes only and does not constitute financial advice. All investments carry risk. Stake Properties Limited is regulated by the DFSA as an Operator of a Crowdfunding Platform in the UAE.