As implied, the secondary market comprises of ready/off-plan properties from all Developers up for resale. Such properties are generally found in matured locations and established residential areas. For completed projects, secondary properties are the properties already in the market for rental or sub-sale purpose, which are currently rented or owner-occupied. Each year, the secondary property market generates a substantial proportion of residential property transactions in UAE, mainly because the market offers a higher number of choices in already established locations.
These are the most sought-after units since buyers and investors can physically view the property and generally have some transaction data or historical price trend for sales. When buying a secondary property, you physically see and experience different elements associated with the property such as the infrastructure, the neighborhood, and the amenities. Secondary properties can sometimes offer great value for money, however buyers must be mindful of the associated costs of the transaction – including Government, bank and real estate agency fees.
Several banks in the UAE will finance up to 85% of the market value of the property (including the associated fees such as DLD registration and agency commission).
Post-Covid, the demand to own property is higher than ever, with month-on-month record transfers being registered by the Dubai Land Department. Today having a personal space to feel safe, spend quality time with family, and comfortably work from home has become very important for Dubai residents. Therefore, many active buyers are searching for homes with green outdoor space, thus pushing up the demand in the secondary market for villas and townhouses. The demand for apartments with large balconies is also high.