Insider Secrets Some Real Estate Agents Won’t Tell You.

“Even if you don’t know where you’re going, any road will take you there.”

That’s how real estate feels when agents throw around terms like “high ROI” without explaining what that really means. A property in a fine location is great, but how exactly do they calculate that Return on Investment? You might have come across phrases like:

“Oh, this property is in a prime location!”

“Prices are skyrocketing, get in now!”

“Guaranteed high returns!”

I know, it sounds promising, right? But are these claims backed by real data, or are they just sales tactics? The sad truth is, some real estate agents will happily sell you a property with poor ROI because their goal is closing a deal, not maximizing your wealth. But there’s no cause for alarm because, in today’s blog, I’ll be exposing the biggest ROI killers in real estate:

• Agent tactics that could eat into your profits
• The key factors that drive sustainable ROI
• Common misconceptions that can hurt your returns
• How to evaluate properties with confidence

So if you’re an investor or a first-time homebuyer, stick around. This piece will help you spot red flags, ask the right questions, and make smarter investment decisions.

When Someone Tells You a Property Offers High ROI, Don’t Just Take Their Word for It! Ask: On what basis? Are they relying on buzzwords like “prime location” and “up-and-coming neighborhood,” or do they have concrete data to back up their claims? ROI is driven by factors like location, market trends, rental demand, and infrastructure development, not wishful thinking. As Warren Buffett wisely said, “Risk comes from not knowing what you’re doing.” So knowing what drives ROI is not just helpful, it is essential.

How Do You Identify Sustainable ROI in Real Estate?

To make a solid return on your investment, a property must meet certain criteria. It is beyond just location or just rental income, but about understanding the interrelationship of different factors.

Sustainable Demand

High demand is not enough on its own. What matters is whether that demand will last. For example, in Dubai:
Dubai Marina has consistent rental demand because of its established market and steady flow of professionals, tourists, and expats.
Emerging areas like Dubai South may not be at their peak yet, but with major infrastructure projects underway, they have strong potential for future growth.

To evaluate demand:

Look for consistent rental occupancy rates, not just short-term spikes.

Research government-backed projects that could drive long-term demand.

Proximity To Economic Activity

Location matters, and proximity to economic hubs makes that big difference. Areas near commercial centers, public transport links, and job opportunities tend to appreciate quicker.

To evaluate location:

Check if the area is near offices, business parks, or transport hubs. Look at historical price trends to see if values are rising consistently.

Future Proofing Your Investment

A property might look like a great deal today, but will it hold value in 5-10 years? Look at what’s there now and also what’s coming. Investing in areas slated for future infrastructure development is a proven strategy for long-term ROI. If major projects are planned to transform an area into a vibrant new hotspot, getting in early allows you to secure  strategically, at favorable prices before the rush.

Not all real estate deals are created equal. Some will grow your wealth over time, while others might offer quick returns but not long-term stability. The problem is, some agents won’t tell you what could kill your ROI because it’s not in their best interest.

What Some Agents Don’t Want You To Know

Some Agents Just Sell a Dream

Some real estate agents push properties that are hard to sell, pitching them as “hidden gems”. If they cannot provide data like rental yields, appreciation rates, and occupancy trends, it’s time to question the deal because real opportunities come with solid backing, not just promises of potential.

ROI Takes Time

Real Estate Is NOT a Get-Rich-Quick Scheme! Some agents oversell “instant” ROI, making it sound like you’ll start earning big returns immediately. But real estate isn’t a Ponzi scheme, it is a long-term game. Properties that offer high rental yields today did not become overnight successes. They are the result of years of strategic planning, growth, and smart development. So look at long-term market trends, not just short-term hype, and avoid properties that rely on unsustainable market booms.

Not All ROI Is The Same

A 7% ROI in a stable, growing neighborhood is often a better choice than chasing 10% ROI in a volatile, undeveloped area. Focus on properties that offer consistent returns with a track record of growth and demand.

“Prime Location” Doesn’t Always Mean High ROI

Just because an area is called “prime” doesn’t mean it’s profitable. Some “prime locations” are already overpriced, leaving no room for appreciation. Some depend on short-term trends instead of sustainable growth, while others have too much supply, leading to low rental demand.

Hidden Costs Can Kill Your ROI

Some agents focus only on the selling price, leaving aside the hidden costs that might drain your profits fast. Watch out for:
High maintenance fees (especially in luxury developments).
Unexpected service charges & property taxes.
Vacancy periods if your property sits empty.
Transaction & legal fees that eat into your net ROI.

How To Protect Yourself

Factor in potential vacancy periods when calculating ROI.

Watch out for properties with excessively high service fees.

The Smarter Way to Invest & Maximize ROI

Instead of falling for agent hype, use real data to guide your investment decisions:

1. Ask the Right Questions: What is driving demand? Look for rental income trends, appreciation rates, and tenant occupancy data.

2. Look Beyond the Price Tag: Real estate can be one of the most rewarding investments, but only when approached strategically. Sometimes, a higher-priced property offers better long-term potential, do your due diligence and look beyond the price.

3. Work with Real Experts: The right real estate partner should be invested in your success, not just their commission.

Do not let flashy promises or buzzwords mislead you. Look for opportunities backed by data, strong growth trends, and reliable long-term returns.

The Muna Real Estate Difference

At Muna Real Estate Limited, we don’t believe in one-size-fits-all advice.

We provide transparent, fact-based analysis of each opportunity.
We help you find properties that align with your financial goals, and model the finances involved and expected, ensuring smarter investment choices.

Join Muna University and learn how to maximize your real estate ROI.
Click here to get started!