Real estate experts reported that the secondary market in Dubai (resale) witnessed a strong performance in 2024, benefiting from the supportive factors available in the market and enticing local and foreign investors to seize the available opportunities.
Experts confirmed to Emirates Today that there are four factors that stimulated the resale activity of real estate or the secondary market, and they include lucrative returns, high demand, banking facilities, and Dubai’s attractive and incubating environment for investment and investors, which played a role in the recovery of the secondary market.
Real estate sector
In detail, Karim Nasser, Marketing Director at SAS Real Estate Development Company, said: “The real estate sector in Dubai is witnessing a remarkable boom with a significant increase in demand for various types of projects, whether they are ready or under implementation, or those that belong to the secondary market. This remarkable growth is due to the increasing demand from foreign and resident investors, benefiting from the unique investment opportunities offered by the market.”
Nasser added, “The high demand for the secondary market comes with the support of several main factors, most notably the quality of available real estate projects, and the increased demand for real estate within the emirate, in addition to high profit margins and lucrative returns in the long term. The market is also characterized by the diversity of projects between residential, commercial, and luxury. “Backed by the strength of advanced infrastructure and the flexibility of legislation that enhances the attractiveness of investment in Dubai.”
Ready real estate
For his part, CEO of Al-Andalus Real Estate Group, Saleh Tabakh, said: “Secondary market sales in Dubai have witnessed a strong increase over the past 11 months, as this is due to several factors, including the rise in prices, which provided profitable opportunities for resale, and the delivery of a large number of Properties in the second quarter of 2024, which encouraged the immediate sale of ready properties, in addition to the strong demand from foreign investors who prefer ready properties for immediate return, which contributed to accelerating the secondary market and enhancing prices in the sector. Real estate.
Tabakh added, “Dubai witnessed the delivery of about 10,000 real estate units in the second quarter of 2024, which motivated real estate owners to sell in the secondary market as soon as they were ready. The market has also witnessed a stable rise in prices over the past three years, which attracts investors looking for returns.” Steady and profitable. This stability is due to the increasing demand from foreign investors who prefer ready-made properties, in addition to the strong infrastructure and facilities provided by Dubai to attract more investments.”
Good return
For his part, the CEO of Stratum Real Estate Management Company, Saeed Abdul Karim Al Fahim, said that “secondary market sales in the real estate sector in Dubai achieved remarkable activity during the first 11 months of this year,” explaining that the secondary market achieved a good return for its investors and profits without achieving losses. Compared to the previous 10 years.
Strong movement
For his part, real estate consultant Adel Ali Al-Hamawi said, “The secondary real estate market in Dubai has witnessed strong movement and now constitutes about 30% of total sales,” noting that the rise in prices created a profit opportunity for investors who had purchased earlier and benefited from selling at a higher price.
Al-Hamwi explained, “There are many people who prefer ready-to-move-in units, especially with bank facilities that provide real estate loans easier,” pointing out that the secondary market provides opportunities to negotiate the price, and this does not exist in new projects.
Al-Hamwi said, “The conditions for obtaining golden real estate residency in Dubai, by having a person own a ready-made property worth two million dirhams or more, have encouraged many to invest in the secondary real estate market because it offers ready-made properties that suit these requirements, and this was one of the important reasons that stimulated market sales.” High school recently.
He stated that prices, high demand, facilities, and Dubai’s attractive and incubating environment for investment and investors played a role in the recovery of the secondary market.
Bank interest
The Chairman of the Board of Directors of the “On Plan Real Estate” Company, Ahmed Al-Dawla, said that “the decrease in bank interest facilitated the purchase of ready-made real estate units,” pointing out that the ready-made units will be close to the prices of the units under construction and there will be equality between them, explaining that the reason for this is due to the Corona pandemic. And that many developers sold real estate units at excellent prices regarding the real estate market, and with the rise in land prices, the first and last beneficiary is the previous investor who benefited from purchasing real estate during the Corona period, and in this case he can resell and achieve profits and large investment returns.
Al-Dawla pointed out that “the prices of units under construction are lower than ready-made units, and the decline in bank interest has made it easier for the investor to buy through the bank,” pointing out that office units are the highest in demand in the real estate market, with the facilitation of opening businesses and a commercial license in Dubai, and granting golden residencies. This made it easier for investors to open office spaces, followed by ready residential properties, then units under construction, then hospitality, followed by hotel units.
He added that the prices of units under construction will continue to rise until they reach ready units, and there will be moderation in the real estate market, indicating that the preference is for office units in the real estate market in Dubai.
The largest percentage
For his part, CEO of Harbor Real Estate Company, Muhannad Al-Wadiya, said that “properties under construction still account for the largest percentage of the real estate market in Dubai,” explaining that resale is an available option because increasing prices encourage investors to sell, and there are those who bought years ago. , especially during the “Covid-19” period, and these people have achieved high profits, and they see that the market has now reached high rates, which helps them to exit these investments with lucrative capital gains, especially if Their properties were rented, so they benefited from two returns: capital return and rental return, explaining that the total returns encouraged them to exit and sell these properties.
Al-Wadiya added that there is a percentage of the deals that are announced from the “lease” category, which are Islamic loans, and most of them are registered as resales, because these are known as not mortgaged to the bank, but the Islamic bank buys the unit and when the “lease” period ends and the payments are made on The purchasing person has ownership transferred to him, and this falls under resale.
Attractive place
In turn, the real estate broker, Asma Mowafi, said: “With the significant increase in real estate prices in Dubai, the secondary market in the real estate sector in Dubai is an attractive place for investors who want to make profits by reselling at higher prices, especially if the properties were purchased some time ago. When prices were lower.
She explained that this rise in prices creates an opportunity for quick profit through the price differences between buying and selling, and encourages more activity in the secondary market.
She pointed out that with the improvement of the economic situation after the pandemic, some banks have provided attractive financing facilities to buyers in the secondary market.
Mofaqi explained that this encouraged new buyers to enter the real estate market, whether for investment or to purchase housing, and the ease of financing helped increase demand in the secondary market.
She stressed that “the Emirate of Dubai remains one of the preferred destinations for foreign investors, due to the laws that allow free ownership of real estate, in addition to attractive returns,” noting that this continuous demand from abroad increases the movement of the secondary market.
She explained that with the growth of the population in Dubai and the increase of families and companies settling in the emirate, the demand for real estate in general has increased, which has stimulated the secondary market as buyers search for properties ready for sale instead of waiting for the delivery of new projects.
Safe destination
Real estate broker, Asma Mowafi, said that the Emirate of Dubai is a safe destination for real estate investment, which has led to increased confidence in the secondary market, explaining that political and economic stability, in addition to continued government support for the real estate sector, has helped attract more local and international investments to the secondary market.
