The numbers are in: off-plan Dubai real estate projects made the majority of transactions in 2019.
According to a study made by Property Finder, off-plan properties make up about 55 percent of Dubai’s real estate transactions while 45 percent involve secondary market deals. The statistics cover the first two months of 2019.
In detail, about 3,069 off-plan homes were sold and 2,463 deals were closed in the secondary market. While this may prove that off-plan properties are leading the way, the trend is actually shifting toward a balance in investment.
When you compare the difference between the figures for the first two months of 2018 to the first two months of 2019, there is a 7.8 percent decrease in off-plan property transactions. On the other hand, secondary market transactions only decreased by 1.4 percent.
For the past years, it is true that off-plan Dubai properties have dominated the market. However, secondary market deals are showing growth, which could eventually rival the growth of off-plan projects. This is an indication that Dubai’s real estate market isn’t purely about investment anymore. There are those people who are now buying properties for personal use.
Perhaps, the main reason behind the growth of the secondary market is the continuing decrease in prices. As you may remember, secondary market properties are more expensive compared to off-plan properties. While the same is true today, the difference between secondary market and off-plan prices is not that big anymore compared to what we have seen in the past.
The leading properties that account for the majority of secondary market transactions include apartments in Dubai Marina, Palm Jumeirah, and International City. Villas and townhouses in Dubai South, Dubai Hills Estate, and Arabian Ranches 2 are also on the top list of secondary market properties.
On the other hand, apartments in Downtown Dubai, Dubai Hills Estate, and Dubai Creek harbor made up the majority of off-plan transactions. For villas and townhouses, the bulk of off-plan transactions came from The Springs, Arabian Ranches, and Al Furjan.
There is more to know about real estate in UAE. Whether you are selling or buying properties, it pays a lot to gather as much information as possible before you make your next investment move.
Thankfully, you don’t have to make a blind step toward your investment. Rocky Real Estate has some of the best real estate agents who will provide you your needed details and guidance to make an informed decision.
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