Dubai’s real estate market is known for its fast pace and luxurious developments. With an increasing number of new projects hitting the market, many people might overlook the value of the secondary market.
However, the secondary market remains a cornerstone of Dubai’s real estate sector as it offers unique benefits for both investors and homebuyers.
What Is the Secondary Market?
A secondary property is one that had a previous owner and is being resold by them rather than directly by the developer. These homes are typically located in well-established neighborhoods and often come with added benefits such as fully developed infrastructure and a clear understanding of the community vibe.
Surprisingly, some secondary properties can still be off-plan, meaning they are still under construction. This happens when an owner who purchased an off-plan unit from a developer decides to resell it before completion.
A Snapshot of Growth
The secondary market has shown impressive growth in recent years. In the first half of 2024, sales volumes surged to AED 76.34 billion (approximately $20.8 billion). Compared to 2023, sales of ready units grew by 15%, while off-plan secondary units increased by 9%. These numbers show us the strong demand and value of secondary properties.
Data source: DXB Interact
If we were to look at the numbers from 2009 to 2024, we can see a significant growth in the sales volume of apartments and villas for resale. Namely, in 2009, we had a volume of 3,700, while in 2013, this number went to 26,300. In 2024, sales volume stands at 55,400, which is, as we mentioned, nearly 15% higher than the year before.
Data source: DXB Interact
If we translate volume to value, 2024 saw a resale value of AED 142.5 billion, which is 19.15% more than in 2023.
Who Benefits from the Secondary Market?
The secondary market is ideal for:
- Homebuyers Looking to Settle in Dubai:
- These properties are often ready or near completion, meaning that buyers can move in quickly.
- Established neighborhoods provide access to schools, shopping centers, and other conveniences.
- Visa Holders Seeking Mortgages:
- Mortgage options in Dubai favor residents, which makes secondary properties an excellent choice for those with a visa.
- Investors Seeking Stability:
- Properties in mature communities often have proven rental yields and lower investment risks.
Comparing Off-Plan, Ready, and Secondary Properties
If you want to make the right choice, you should know the differences between property types:
- Off-Plan Properties: These are under construction, often sold directly by developers. They offer attractive pricing, flexible payment plans, and a high potential for value appreciation.
- Ready Properties: Fully constructed and move-in ready, they provide immediate benefits but may come at a higher price compared to off-plan units.
- Secondary Properties: These can be ready or off-plan but are sold by previous owners. They often come with negotiable prices and wider choices, especially in established locations.
Benefits of the Secondary Market
While new developments may grab headlines, the secondary market holds its own unique position due to several factors:
Pros of Secondary Properties
- Established Units in Prime Locations:
Buyers can see exactly what they’re getting, from the property’s condition to the surrounding community. - Wider Variety and Less Competition:
Unlike the primary market, where properties sell out quickly, the secondary market offers more options and time to decide. - Negotiable Pricing:
With the right real estate brokerage, such as Glidai Properties, you might secure a better deal than what’s available in the primary market.
Cons of Secondary Properties
- Renovation Costs:
Older homes may require updates, so factor these into your budget. - Older Designs:
The property’s style might not match the latest trends, but renovations can often solve this issue. - Less Flexible Payment Plans:
Unlike developers, individual sellers are unlikely to offer extended payment options.
Why the Secondary Market is Worth the Hype
Despite some challenges, the secondary market remains a smart choice for both investors and residents. It provides immediate or near-term ownership, established infrastructure, and potentially lower prices through negotiation.
If we were to summarize it all, the Dubai secondary market is not just surviving but thriving. It’s an excellent option for anyone who wants to settle in Dubai or make a strategic real estate investment. While new developments offer cutting-edge features, the secondary market brings something equally valuable: stability, flexibility, and the chance to own a piece of Dubai’s established communities.
Contact us today for more information about the secondary real estate market. We’ll help you find the right choice at the best market price.