You can simply get some assistance from Ax Capital specialists if you wish to own a residence in one of Dubai’s most prestigious residential complexes, like Cavalli Tower, One Palm, or Residences at Marina Gate.
In addition to assisting you in choosing the best investment properties, they will help you determine which properties will be the most profitable. As well as helping you find the right property for your own residence, they can also provide you with advice. There has been a significant increase in the sale of secondary real estate in recent years. Here are some reasons and statistics to consider.
Is there a reason why people choose to resell in Dubai’s secondary real estate market?
Secondary real estate market growth
According to the results of the first quarter, there has been a surge in demand for resale properties in Dubai. There is a marked interest in secondary real estate by European investors, according to experts. In addition to citizens from Great Britain, France, and Italy, the most active buyers are from the United States.
As far as volume and number of transactions are concerned, the second market set another record in the first quarter of 2010.
- Twenty-five thousand five hundred and forty-nine transactions were completed, totaling AED 55.5 billion, or USD 15.11 billion.
- Data from the Dubai Land Department confirms that resale properties accounted for 58% of the total number of transactions in the first quarter of 2022. Directly connected to the primary market were 42% of the remaining sales.
What are the chances of this trend continuing? According to experts, secondary real estate demand will increase under conditions of a limited number of proposals. Owners hoping to resell a property will want to make a profit after buying it. Buyers hoping to resell a property will want to make a profit after buying it.
Off-plan and resale properties in Dubai compared
Secondary housing also increased in demand during the first quarter, along with off-plan properties. In more precise terms, only European investors are growing their demand. It was citizens of Italy, France, and Great Britain who were most active in the secondary real estate market in Dubai.
There has been a significant decrease in the spread between real estate under construction and finished real estate: primary housing accounted for 42% of all sales, and secondary housing accounted for 58%. Furthermore, it is worth bringing in the previous month’s results as well. A secondary market of 60% of transactions, and an off-plan housing market of 40%, handled 60% of the transactions.
There is a very simple explanation for this situation. In Dubai, property investments are not the only thing people are interested in. It is home to tens of thousands of expats, who move here each year for education, career advancement, and to start their own businesses. The majority of them do not have the time to wait until the housing is fully completed, so secondary real estate is the only option available to them.
According to experts, the differences between the primary and secondary housing markets will gradually disappear in 2022, as developers have already announced the opening of new projects that are even more attractive to buyers.
Is it better to rent or buy real estate in Dubai?
There has been a 25% increase in rents in many parts of Dubai. Most experts predict that the average rent will reach the level of 2014 by the end of 2022. Several areas experienced the greatest growth in rental prices, including:
- Located on Jumeirah Beach
- Residences Jumeirah Beach
- This is the Greens
Similarly, the highest demand was registered in areas that were more accessible: this affected middle and high-income segments. Dubai Statistical Center confirms the high demand and attractiveness of the city as a result of visa and economic reforms. The total population increased by 3.5 million people in April, according to specialists.
There has also been an impact on the real estate market as a result of this situation. Prior to now, young and middle-aged citizens of other countries living and working in Dubai rented housing.
As a result, the trend of buying property by visitors aged 20 to 40 has dramatically changed: the majority want to invest in their own futures by purchasing a property. In addition, many projects have been sold almost instantly due to this reason.
Rising interest rates will also contribute to the growth of rents, along with high migration rates. Demand for long-term rentals is increasing, but due to the onset of the tourist season, the situation will soon change.
In Dubai, a real estate agency
Interested in purchasing real estate in Dubai? X Capital’s specialists are happy to share their market knowledge and answer any questions you may have. They provide their clients with really attractive options as a result of their direct contact with developers.