Many first-time investors are thinking about what is more profitable: buying a second-hand home in Dubai or a newly built property and whether it is worth buying off-plan property?
The Dubai real estate market is actively growing. For instance, in September alone, 8,651 purchase and sale transactions were recorded in the emirate, which is 49.5% more than in September 2021. Of these, 4,917 transactions were for off-plan real estate, and 3,734 for move-in ready housing. The growth rate for the year was 88.5% and 17.5%, respectively. Thus, we see that investors are interested in both types of real estate, while the popularity of properties in new projects is growing.
This is not surprising as Dubai developers are constantly rolling out new properties designed to attract buyers with unusual architecture, access to premium amenities and lucrative payment plans. In the first half of 2022, they launched 67 projects with 130,000 housing units. Growing home sales show that demand for real estate in the emirate remains consistently high.
Resale housing in Dubai is a considerable share in the market, amounting to 30-40%. Professional brokers say that this indicates a healthy balance of supply and demand.
Each type of real estate has its own advantages and disadvantages, which can be important for a particular investor. The financial situation and priorities of each buyer are also unique. To make a reasonable choice, it is necessary to clearly understand the specifics of both primary and secondary real estate.
Prices in Dubai allow investors with different incomes to choose a worthy option. Real estate under construction can be 20% cheaper than finished, but you should keep in mind that off-plan prices in Dubai are now actively growing. In addition, developers are choosing to launch projects in more expensive areas.
The average cost of one-bedroom off-plan apartments in the first half of 2022 increased by 46% compared to last year and amounted to AED 1.2 million ($326,500), while the cost of a finished apartment increased by 14% to AED 1.1 million ($299,500).
Prices for resale real estate, as a rule, are 10-30% lower than for housing in finished new projects. Villas are still more expensive. According to the statistics for the first half of the year, the average cost of an off-plan villa was AED 1.7 million ($463,000), which is 9.6% more than a year ago. The average price of a finished villa reaches AED 2.6 million ($708,000), showing an increase of 6% over the first half of the year.
Copyright © Property Concierge Ltd. All Rights Reserved.