Liquidity Risk
Liquidity risk is the potential inability to quickly sell property at fair market value due to market conditions, property characteristics, or timing constraints.
| Liquidity Drivers | Impact |
| Property type | Residential more liquid than specialized |
| Price point | Sub-AED 3M faster than luxury over AED 10M |
| Location | Prime areas higher liquidity |
| Market conditions | Down markets extend sale periods |
| Size and complexity | Larger assets require institutional buyers |
| Financing availability | Tight credit reduces buyer pool |
| Typical Sale Timeline | Dubai Market |
| Studio/1BR (prime location) | 2 to 6 weeks |
| 2BR/3BR apartments | 4 to 12 weeks |
| Villas | 3 to 6 months |
| Luxury properties (AED 10M+) | 6 to 12+ months |
| Commercial assets | 6 to 18 months |
| Distressed sale discount | 15% to 30% below fair value for quick exit |
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