Which – primary or secondary – real estate to choose in Dubai, so as not to overpay and live comfortably in this apartment? There is an opinion of experts on this matter.
The Dubai real estate market is so young that secondary real estate is just emerging on it. In terms of price and many other parameters, it is more profitable than new buildings.
Why?
Artificial intelligence, which analyses the Dubai real estate market constantly, “sees” the movement of the cost of apartments from purchase to sale. AI “noticed” several interesting trends in the Dubai market:
- This is the market of realtors. There is still little automation here, everything is solved by specific agents who work for a commission from transactions.
- In connection with point 1, you will think that only new buildings with great prospects are sold in Dubai. But this is not quite true. Realtors show what they need to sell.
- There is always a stir around the start of sales with the help of aggressive marketing, advertising purchases.
- Primary real estate purchased at the start of sales is an absolutely illiquid commodity that falls in price over the next couple of years while construction is underway.
- Your capital invested in the primary “grows” and increases its value only by the time the house is put into operation.
Experts conclude from this that primary real estate at the start of sales is an illiquid asset with a small increase, the profit from which will be formed only due to the overall growth of the market or the active growth of demand in the area if you want to invest in real estate.
But not all primary real estate is the same, of course, so you should not immediately give up viewing new buildings. There are options in only developing areas that were not implemented at the start of sales. Such an apartment will cost less than analogues and will be a really good investment. But in order to find this option, you need to monitor the market.
Secondary real estate
As a rule, in central areas, secondary real estate is well–maintained and relatively new real estate, often with good repair. Developers are not engaged in the sale of secondary housing, and realtors do not have a serious motivation to invest in its advertising, so secondary housing is cheaper. Even unfinished secondary housing is cheaper, that is, any option of assignment here is beneficial only to the buyer.
It is the secondary real estate that will grow more during the rise of the market, and it will be a good option for investment.
Therefore, if you want to move with your family to another apartment, then you can safely sell the apartment, since secondary real estate is also in high demand.
If you don’t want to rent an apartment, then this is a great investment in your family life. After all, Dubai has a developed infrastructure and a high standard of living, so it will be comfortable for you and your family to live here.