Airbnb investment RISK isn't the property!

What if I told you that the biggest risk to your Airbnb investment isn't the actual property, it's the government. And it's the reason I spent almost 14 months researching Spain, seriously considered opening an office there, and ultimately decided to continue to focus building my international real estate business in Dubai instead. Now before anyone misunderstands me, this isn't a video criticizing Spain because I love Spain. I love Marbella. I love Estepona where I was living. I love the closest old soul and I truly enjoyed my time there. It's a stunning place. This is a video about something much bigger because over the past few years we have watched city after city begin restricting short term rent. The news just came out about Barcelona. We have New York, Amsterdam, Toronto, Vancouver, parts of California. And when Barcelona just announced the plans to phase out tourist apartment licenses over the coming years, it made me realize something. Most investors are asking the wrong question. They're asking, is this a good apartment? When the better question is, is this the right country to invest in over the next 10 years? Because here is what I've learned after working with international investors every single day. You're not just investing in real estate. You're investing in a government's vision. And by the end of this episode of The Dubai Connect podcast, I'm going to show you the exact framework I now use before recommending any international market to my clients. If this is your first time here, welcome. I'm GG Benitez. I work with international buyers investing in Dubai. And I also help clients buy and sell in coastal California, particularly La Jolla, Del Mar, Coronado, San Diego. And every week I speak with people from the United States, from Canada, the UK, Europe, who are asking the same question: Where should I invest internationally for max ROI? But what's interesting is that almost nobody asks the right question. They usually ask, what's the hottest project? What's going to appreciate the fastest? Where can I Airbnb? Yes, those are important questions, but they're not the first questions you should ask because of government policy changes. Everything else can change with it. And that's exactly what we're seeing happening around the world, limiting global real estate investors' ROI. So now let me tell you why this topic is very personal to me. A lot of people may assume that because I help clients invest in Dubai, I must have always believed that Dubai was the only obvious choice. But actually I almost built part of my business somewhere else. For nearly 14 months, I was also deeply researching Southern Spain. In fact, I moved there to immerse myself into the real estate market to be able to fully understand in order to guide my global real estate investors. I'm not talking about casually, but I seriously. I flew there, left San Diego and spent time there meeting with developers, other real estate agents, lawyers, property managers, understanding what's happening. I looked at Marbella. I lived in Estepona. I toured Benalmádena and Malaga. I wanted to know if this was a market that I could confidently recommend to my clients. And I did fall in love with it. The lifestyle there is absolutely incredible. In fact, it reminds me a lot of where I live in San Diego: beautiful beaches, amazing food, walkable cities, unbelievable weather and warm people. If you've ever been to Southern Spain, you know exactly what I'm talking about. I completely understood why so many Americans, Canadians and Europeans dream about owning property there. But then something started to happen. The conversation slowly changed. Instead of asking which property should I buy, people were asking what happens if the regulations change? Because we started hearing this on the news: What if I lose my tourist license? What if my city changes the rules? What happens if I can't Airbnb here anymore? And I noticed something else. People weren't just evaluating the investment. They were trying to predict politicians and that's a completely different type of investment. And I'm thinking, if I recommend this market today, can I confidently tell my clients what the rules will look like here five years from now, especially for an off-plan that's delivering in that time? And I couldn't. Not because Spain isn't beautiful, and not because people can't make money there either, because they can. But I couldn't confidently predict the direction of the regulatory environment. And that realization completely changed how I evaluate international real estate. Today, before I look at a floor plan, before I compare prices, before I compare rental yields, I ask a completely different question: What direction is this government moving into? Because governments don't just regulate real estate. They shape it. And once I started looking through that lens, everything looked different. Today when a client calls me from California or New York or London or Toronto, they're expecting me to tell them about the hottest new launch in Dubai. Instead, I actually ask them this question: Tell me what you're trying to accomplish. Because buying a vacation home is completely different than building long term wealth. Buying for Airbnb is completely different than buying for appreciation. Buying for retirement. Buying for the Golden Visa. These are all different. The right investment always starts with the right strategy, not just the right property. There was one conversation that completely changed the way that I think about international real estate. Years ago, on The Dubai Connect podcast, one of the first interviews that I was so proud to do was with Dr. Mahmoud Albury from the Dubai Land Department. If you've watched my podcast before, you know I love asking the questions that international buyers are actually thinking but are sometimes afraid to ask. So I asked him something very simple. I asked: What happens if my tenant refuses to leave my investment property in Dubai and I'm in the US, Canada, or other parts of Europe? And if you're from there, you understand why I asked that question. Because we've all seen the headlines. Landlords waiting months, sometimes more than a year. In Spain, it's very difficult. The anti-squatter laws are constantly improving, but it's very difficult. So trying to regain possession of their own property sometimes will cost a lot of money with legal battles and court costs, lost rental income, and stress. And then if you're abroad, imagine how difficult that is. So whether those situations are common or rare doesn't matter because investors don't just think about probability. They think about possibility. They usually ask: What's the worst case scenario? And I'll never forget Dr. Mahmoud's response. He smiled and basically said that would never happen in Dubai. Not because disputes never happen, by the way. Every country, including the UAE, has disagreements between landlords and tenants. But it is because Dubai has created a structured legal framework with the Real Estate Regulatory Agency overlooking all transactions. And there are tenant courts, clear contracts, clear procedures, dedicated rental disputes center, defined processes for resolving issues. And what struck me wasn't that Dubai was claiming perfection. It's something much more important for investors: Predictability. Because predictability has value. Uncertainty always has a cost. Now around that same time that I had Dr. Mahmoud Albury on The Dubai Connect podcast, there was actually a story going viral out of Los Angeles that had really caught my attention as well as global real estate investors. And it was an Airbnb guest that refused to leave the property. What started as a short term stay turned into a very complicated, long legal situation. The homeowner couldn't simply walk in and change locks. Instead, they found themselves dealing with a legal process over possession of their own property. This is not about criticizing any one city. Every legal system has its own rules. But stories like that force investors to ask difficult questions. Not just how much money can I make, where is this project, what's the payment plan. But how protected am I if something goes wrong? And I think that's a much smarter question, especially if you're a global investor investing from the US or Canada. You can't just hop on a plane and be in Dubai in a couple of hours. So real estate investing isn't just about maximizing projected returns, but managing risk. The conversation with Dr. Mahmoud Albury changed something for me. Today, I don't compare apartments first. I compare governments. I compare regulations, long term vision, what their urban plans are, what their economic agendas are. I compare whether a city is attracting people or losing them, whether businesses are moving in or moving out, whether millionaires are moving in or moving out, whether infrastructure is expanding or standing still or even becoming worse, whether tourism is growing or declining, whether regulations are becoming clearer or more restrictive. Because here is the important truth: The apartment can stay exactly the same while the investment changes overnight, simply because the rules change. Think about that. The kitchen didn't change. The view didn't change. The location didn't change. But one government decision literally changed the economics of owning that property. That's why I believe one of the biggest mistakes investors make is spending months comparing marble countertops without spending a single afternoon understanding the country they're investing in. So that naturally raises the next question: Why has Dubai become one of the world's fastest growing destinations for international property investors? Is it simply because there are no annual property taxes? Is it because of the stunning skyline? Or is something much bigger happening beneath the surface? Because in my opinion, Dubai did not become successful by building skyscrapers. It became successful by building demand. And that's where the story gets really interesting. Here's what I think a lot of investors miss. People look at Dubai and they see incredibly beautiful tall skyscrapers, luxury waterfront apartments, five-star hotels. But that's not what I see. I see demand and regulation. Buildings by themselves don't create successful investments. People do. Regulations do. Think about it. Millions of people don't wake up one morning and randomly decide to visit Dubai. They're coming here for business. They're coming here for conferences. They're coming for exhibitions, for shopping, for health care, for sporting events, for family vacations. They're coming because their company transferred them for a safer quality of life, for schools, medical care. They're coming because they started a business here. Every one of those people needs somewhere to stay: whether it's for three nights, three months, or three years. That's demand. And demand is what ultimately supports real estate. One lesson I've learned after years in international real estate is this: The smartest investors don't follow the buildings. They follow the infrastructure because infrastructure usually comes before the appreciation. Think about what Dubai has been doing: expanding airports. There's the announcement recently about Al Maktoum Airport. It's going to be the largest airport in the world. Expanding the metro. They already have the longest self-driving metro in the world. Creating new master plan communities. A very important topic, by the way. I'll go into that in another podcast. Developing Expo City into a permanent business and innovation district. Creating new waterfront destinations. Attracting multinational companies, including American and Fortune 500 companies. Hosting global conferences and growing tourism year after year. None of these projects exist in isolation. They're all connected. They're all part of one long-term vision. And when I look at a market, that's what I want to understand: not just where the prices are today, but where's the demand likely to come from over the next 10 years? When a client calls me and asks me, what's the best project, I have to stop them because that's not where our conversation should start. Instead, I will start asking them questions like: Are you trying to build wealth? Are you looking for monthly income? Are you going to use the property yourself? Do you want to retire here one day? Or are you simply looking for appreciation? Because if your goal is Airbnb, I'm looking at completely different locations than if your goal is a long-term family tenant. For short-term rentals, I want to know: Can visitors easily get to downtown? Can they reach a metro? How close is the airport? How close is the exhibition center? How close is Expo City? Can they walk to restaurants? Is there something that gives a traveler a reason to book this property instead of thousands of others? And that's a completely different investment analysis. And honestly, that's why I believe buying internationally isn't about finding the best project. It's about finding the right project for your individual strategy. One of my favorite episodes of The Dubai Connect podcast was with Guest Ready. Because one concern I hear all the time is: If I live in California, how am I supposed to manage an Airbnb in Dubai? And that is a fair question. Years ago, that would have been a major obstacle, but today it's completely manageable because Dubai has set up professional management companies that could coordinate guest communication, cleaning, maintenance, pricing, and day-to-day operations even simpler than if you were investing in the state over. That doesn't mean that short-term rentals are passive investments. They're still businesses. But it does mean you do not have to live in Dubai to own and manage the property. And for many international investors, that changes everything. And here's another interesting point. This episode really isn't about Airbnb. Airbnb was simply the hook. The real story is much larger: it's about understanding why one city is becoming more restrictive while another is investing billions into attracting residents, businesses, tourists, and capital. Because those decisions shape the future of a real estate market long before they even show up in the property prices. And that's exactly why I spend so much time studying governments, infrastructure, and long-term planning, not just launch brochures. So after spending nearly 14 months researching Spain, after interviewing government officials, developers, attorneys, mortgage experts, property managers, and after helping clients from all over the world invest internationally, I have come to one conclusion: The best investors don't simply buy where prices are rising. They buy where the long-term vision makes sense because every city has beautiful parts. Every city has luxury builds. Every city has marketing brochures promising incredible returns. But not every city has a government intentionally building an environment designed to attract talent, businesses, entrepreneurs, tourists, and investment. That's what I look for today. Not perfection, direction. And that's an important difference. So one of the biggest mistakes I see investors make is falling in love with a property before they fall in love with the market. They'll spend weeks comparing finishes, the kitchens, the bathrooms, the balcony view, the amenities. These are not my favorite topics to discuss, by the way, in case you can't tell when you work with me. But they'll spend almost no time asking questions like: Where is the city's population headed? What industries are growing here? Is tourism increasing? And where are those tourist areas? Or where are they going to be in the next few years? Are global companies opening offices here? And if so, where? What infrastructure is being built? And where? Is this government making it easier or harder for global investors? Because if you buy in the wrong market, even the perfect apartment may never become the investment you had hoped for. On the other hand, a well-located property with a top-tier developer, a reputable developer, and a city with strong long-term fundamentals can continue creating opportunities long after the excitement of launch day has faded. People often ask me: GG, do you think Dubai is the best place in the world to invest? And my answer is always the same. I don't believe there's one perfect market for everyone. The right investment depends on your goals, of course, and your timeline, your risk tolerance, and your overall strategy. But I can tell you why I chose to build my international business here. Because when I step back and look at the bigger picture, I see consistency, planning, infrastructure. Importantly, a government that's thinking decades, not just months ahead. I see a city that continues to invest in transportation, tourism, innovation, and quality of life. It doesn't guarantee that every investment succeeds. Nothing can. But it gives me the confidence in the direction of the market. And as someone whose reputation depends on the advice I give my clients, that matters. If there's one thing that I would love for you to take away from today's Dubai Connect episode, it's this: Don't just research the property. Research the country's vision. Look into the Dubai Urban Master 2040 vision. Look into the D33 agenda. Because governments shape markets. Infrastructure creates demand. Demand drives real estate. And over time, those bigger forces often matter far more than the color of the kitchen cabinet or whether the apartment has one extra balcony. That's become my framework: how I evaluate opportunities, how I advise my clients. And honestly, it is one of the biggest lessons I've learned throughout my career. If you found today's episode helpful, I'd really appreciate you subscribing to The Dubai Connect podcast right here on my GG Benitez International YouTube channel. Every week, my goal is to help you become a smarter global real estate investor by bringing you conversations with government leaders, economists, developers, attorneys, mortgage experts and professionals who are actually shaping these markets, not just talking about them. I'd love to hear your thoughts. Do you think more cities will continue restricting short term rentals over the next decade? Or do you think we'll eventually see that trend reverse? Believe your thoughts in the comments below. I read as many of them as I can. And many of your questions actually end up becoming future episodes. And if you're considering investing in Dubai, or you're simply trying to understand whether it fits your long term goals, you'll find links in the description with additional educational resources and previous podcast episodes that go much deeper into financing, legal considerations, property management, off-plan investing and choosing the right strategy. Until next time, I'm GG Benitez. Thank you for spending your time with me. And remember, the best investors don't chase the hottest property. They invest where the future is being built.