Secondary real estate market in Dubai heralds stability
A secondary property market is emerging in Dubai, according to industry observers, in which individual buyers and sellers will increasingly begin to determine the movements of prices rather than traditional investors and property developers.
A recent study undertaken by the organizers of the Resale & Rental Property Show, DSL Exhibitions, concluded that such a secondary market was in the making, and that it was proving to be highly transparent and dynamic, according to Khaleej Times.
The company had conducted two opinion polls — one with the industry and the second with consumers — to unveil market trends and to offer the short-term predictions.
"In the last year, the number of properties coming on the market from individual owners — as against those directly from developers — has gone from almost negligible to over 30 per cent, as a proportion of the total market," said Marketing Director of DSL, Tessa Morris.
"Both surveys unreservedly showed that the market is entering its second phase of development where buying and selling in the secondary market will gather momentum and therefore real demand and supply — instead of property developer's price lists — will begin to determine price levels," she said.
The balance of Dubai’s property market has shifted in favor of individual owners who buy properties for personal use, with some 60 percent of the market being dominated by them rather than individual investors. The trend is expected to significantly stabilize the market as fewer speculative investments affect it.