To become a proud owner in one of the prestigious residential complexes of Dubai, for example, Cavalli Tower, One Palm, or Residences at Marina Gate, you can simply get some assistance from Ax Capital specialists.
They will help you select the best investment properties that will demonstrate excellent profitability. They will also help you find a property that is ideal for your own residence. Now there has been noted significant growth in the sales of the secondary real estate market. Let’s have a look at the reasons and statistics.
Why Do People Opt for Resale in Dubai Secondary Real Estate Market?
Growth of the secondary real estate market
Demand for resale property in Dubai is starting to grow rapidly: this is shown by the results of the first quarter. Experts note that investors from Europe are especially interested in secondary real estate. It is noted that the list of the most active buyers includes citizens from Great Britain, France, and Italy.
In terms of volume and number of transactions, in the first quarter, the secondary market set another record since 2010.
- In total, 20,539 transactions were made, the total amount of which was AED 55.5 billion, which is equivalent to USD 15.11 billion.
- Data received from the Dubai Land Department confirms that in the first quarter of 2022, more than 58% of the total number of transactions were resale properties. The remaining 42% belonged directly to the primary market.
Will this trend continue? Experts are sure that in the conditions of a limited number of proposals, the demand for secondary real estate will increase. The current owners will want to make a profit after their purchase, and the buyers will want to make a profit after the resale of the property.
Comparison of the off-plan and resale property in Dubai
During the first quarter, along with off-plan properties, the demand for secondary housing also increased. To be more precise, demand is growing only from investors from Europe. The most active buyers of secondary real estate in Dubai were citizens of Italy, France, and Great Britain.
The spread between the real estate under construction sector and the finished real estate sector has significantly decreased: the primary housing accounted for 42% of all sales, and the secondary – 58%. It is also worth bringing the already calculated results of the previous month. 60% of transactions were concluded on the secondary market, and 40% on the off-plan housing market.
This situation is very easy to explain. Dubai is seen as more than just a property investment. Tens of thousands of expats move here every year to enter educational institutions, build careers and open their own businesses. Many of them do not have time to wait until the housing is fully completed, and therefore they have to choose secondary real estate.
Experts expect that the differences between the primary and secondary housing market will gradually disappear, because in 2022 developers have already announced the opening of new projects that are even more attractive to buyers.
Which is better – rent or buy real estate in Dubai?
In many areas of Dubai, rents have increased by 25%. Many experts expect that by the end of 2022, the average rent will approach the level observed in 2014. The highest growth in rental prices was observed in areas such as:
- Palm Jumeirah
- Jumeirah Beach Residences
- The Greens
At the same time, the highest demand was registered in more accessible areas: this affected the middle and high segment. The high demand and attractiveness of Dubai due to visa and economic reforms is also confirmed by the Dubai Statistical Center. According to data provided by specialists, in April the total population increase was 3.5 million people.
This situation has also had an impact on the real estate market. Previously, young and middle-aged citizens of other countries who lived and worked in Dubai preferred to rent housing.
Today, the trend has changed dramatically: the majority of visitors aged 20 to 40 want to buy property, investing in their own future. By the way, this is the reason for the almost instantaneous sale of many projects.
In addition to high migration rates, rising interest rates will also contribute to rent growth. It is worth noting the fact that demand is increasing for long-term rentals, but the situation will soon change due to the onset of the tourist season.
Real estate agency in Dubai
Do you want to buy property in Dubai? Ax Capital agency specialists will be happy to share their knowledge of the market and advise you on all your questions. Thanks to direct work with developers, they offer their clients really attractive options.