Dubai sees an unoften balance between secondary and off-plan transactions
- 3,069 off-plan homes exchanged hands in first 2 months
- Prices in the secondary market continue to be more attractive and affordable
Dubai: Off-plan properties accounted for 55% of Dubai market transactions in the first 2 months of 2019 while secondary market deals made up the remaining 45% of the share, according to Property Finder research.
This is a far cry from the earlier cycles in the Dubai property market when off-plan sales dominated and secondary home transactions trailed by a huge margin. This unusual balance suggests that Dubai is no longer a purely investor-driven market.
In terms of volume, 3,069 off-plan homes exchanged hands while 2,463 secondary market deals were clinched in January and February 2019, says the Research and Data team of Property Finder, the go-to real estate website in the Middle East and North Africa.
Robust activity in the secondary market denotes that end-users are still active and purchasing homes in Dubai. Developers are increasingly devising unique payment plans to attract this target clientele and clear the majority of stock in their inventory.
When compared to the first two months of 2018, off-plan property transactions have declined by 7.8% this year, according to Property Finder research.
“In 2018, we saw more of a balance between secondary and off-plan sales transactions and that trend appears to be continuing into 2019. Prices in the secondary market continue to be more attractive and affordable, while sellers have been much more motivated, one reason due to their competition with off-plan, ready stock,” says Lynnette Abad, Director of Research and Data, Property Finder.
Secondary market transactions in January and February 2019 are down only by a marginal 1.4% in a year-on-year comparison.
For apartments, the Palm Jumeirah, Dubai Marina and International City accounted for the most secondary market transactions in the first two months; while Dubai Hills Estate, Downtown Dubai and Dubai Creek Harbour (The Lagoons) took the lion’s share of off-plan deals.
For villas/townhouses, Dubai South, Arabian Ranches 2 and Dubai Hills Estate contributed to the bulk of off-plan transactions while Arabian Ranches, The Springs and Al Furjan accounted for most secondary market deals.