Real estate experts have confirmed that the secondary market in Dubai (resale market) has shown strong performance and exceptional flexibility, with unprecedented activity during the first 10 months of the current year. The value of 'resale' transactions grew by 20.85%, reaching approximately 261.44 billion dirhams, compared to about 216.34 billion dirhams during the same period last year. They told 'Emirates Today' that this strong performance is supported by several factors, most notably investors' drive to seize opportunities in the market amidst diverse regions and housing options, multiple price categories, banking facilities, and lucrative rental and capital returns. They explained that returns in the secondary market reach around 7% annually for residential apartments and 9% for commercial units or properties designated for short-term rent, in addition to capital returns ranging between 10% and 20%, making the secondary market a profitable choice for investors. They added that the banking sector in the country plays a vital role in supporting the secondary market through innovative and facilitated financing solutions for buyers and investors, noting that banking facilities, such as reducing the down payment for citizens and residents, first-time homebuyer initiatives, and extending repayment periods up to 25 and 30 years, have all contributed to reviving demand, especially from new buyers. They advised investors to adopt a smart strategy focusing on 'under construction' properties in promising communities and to diversify between properties.
In detail, the CEO of 'Harbor Real Estate Company', Engineer Al-Wadi, told 'Emirates Today', 'The new supply in Dubai, while it may seem increasing on paper, reality shows that the actual demand from residents and global investors continues to grow.' Al-Wadi added, 'This new supply will not exert real pressure on the secondary market as some expect, especially in ready and demanded areas that enjoy integrated infrastructure.' He pointed out that the secondary market may benefit from the current momentum, as many investors prefer ready properties over their 'under construction' counterparts, especially with delays in the delivery of some projects and rising financing costs. Al-Wadi explained that 'returns in the secondary market currently range between 5% and 7% net annually for residential apartments and may exceed 8% to 9% for commercial units or properties designated for short-term rent, especially in tourist areas and areas near metro stations.' He continued, 'There are also continuous capital returns due to rising prices in mature communities, where some areas have seen increases ranging between 10% and 20% in the last 12 months alone, making the secondary market a profitable choice for investors.' Al-Wadi noted that the rise in interest rates over the past two years has weakened the momentum of some buyers reliant on financing, but it has not stopped demand, especially with the continued flow of capital into Dubai and the increase in cash purchases. He said, 'With the beginning of a decline in interest rates globally and locally, the market has started to see an increase in demand from end buyers looking to benefit from low-cost financing.' He confirmed that 'recent banking facilities, such as reducing the down payment for citizens and residents, first-time homebuyer initiatives, and extending repayment periods up to 25 and 30 years, have contributed to reviving demand, especially from new buyers looking for their first home or a long-term investment.'
Al-Wadi advised investors to adopt a smart strategy focusing on 'under construction' properties in promising communities, such as Dubai Expo, Dubai Creek Harbor, Jumeirah Garden City, and Dubai Islands, in addition to ready properties in mature communities, due to lower risk levels and higher liquidity. He also stressed the need to diversify between long-term rental properties and those designated for short-term rent (furnished) under a 'holiday homes' system to achieve a higher total return and better risk distribution, confirming the importance of focusing on projects with real added value, such as spacious areas, quality management, proximity to services, and developed infrastructure, as they are capable of maintaining their value across different economic cycles.
Meanwhile, the Executive Director of Revenue at 'Property Finder', Sherif Suleiman, said: 'The secondary real estate market in Dubai has shown exceptional flexibility this year, with values increasing by over 20.85% and trading volumes by 15.88% during the first 10 months of the current year compared to the same period in 2024.' Suleiman believes that the performance of the secondary market in Dubai reflects the strength of the emirate's economic fundamentals, starting from the stability of GDP growth, passing through long-term residence policies, to establishing a home-owning culture among residents and citizens alike.
On his part, the CEO of 'Al-Anqa Real Estate Company', Nadir Talaat, said: 'Dubai continues to cement its position as a world-leading hub in the secondary real estate market, driven by factors of continuous economic growth and increasing investment flows, making it one of the most attractive real estate markets for 2025 and beyond.' Talaat confirmed that 'the banking sector in the UAE plays a vital role in supporting the secondary market through innovative and facilitated financing solutions for buyers and investors,' explaining that national banks offer financing up to 75% of the property value for first-time buyers and 60% for investors in ready properties at competitive prices. Talaat also pointed out that 'the banking sector has provided digital approval systems that do not exceed 48 hours in most cases, covering about 70% of requests, which has contributed to raising deal completion rates and increasing the liquidity of the secondary market.' He said, 'The confidence of local banks in the real estate market remains high, thanks to the stable regulatory framework and effective supervision, which supports the continuity of real estate growth in the emirate.' Talaat predicts the secondary market will grow at a rate ranging between 15% and 18% by the end of 2025, driven by strong banking liquidity and high rental demand.
In the same context, the CEO of 'Abu Anja Real Estate Development Company', Mohammed Abu Anja, said: 'The resale market in Dubai is witnessing unprecedented activity, driven by the growth in demand from investors and residents looking for ready-to-move-in units or to achieve immediate investment returns.' He added that the boom in the secondary market is based on a set of main factors, most notably the rise in the capital value of new projects, which made many buyers turn to existing units at competitive prices in strategic locations. Abu Anja explained that the lucrative rental returns and stable legislative environment have boosted the confidence of local and foreign investors, especially in light of government policies that support long-term ownership and grant residency to investors. He added that the development of the institutional structure of the real estate market in Dubai, such as enhancing transparency and simplifying the sales process through digital platforms, has improved the efficiency of the secondary market and increased trading volume. Abu Anja highlighted that the diversity of residential areas and multiple price categories have given the secondary market a wider base of buyers, confirming that this sector is no longer an alternative to the primary market but has become a complement to it and a main driver of real estate liquidity in the emirate.
