Dubai Secondary Real Estate: Is It Worth It?

At first glance, it may seem that buying a property on Dubai's secondary market is more challenging than buying directly from a developer.

Secondary real estate can be a profitable investment if you buy in the right area with good development prospects. According to data from the CBRE, the rental yield from secondary real estate in Dubai ranges between 6-8% per year. Today, there is a certain shortage of offers on the market. One of the key trends for 2024 is:

• Searching for undervalued properties

• High-demand locations

• Investors prefer one-bedroom apartments or studios

• The condition of the building must meet high standards

• Well-developed infrastructure: the focus is shifting from "I'll wait for it to be built" to "key infrastructure elements must already be in place."
  

Pros of Investing in the Secondary Market

• Well-developed infrastructure. It’s worth looking for properties in already popular areas with rich infrastructure.

• Statistics. Analytics shows that prices for secondary real estate in Dubai remain stable and even grow in the long term.

• Fast start. Secondary properties are ready for leasing, which allows for immediate income after purchase. Cosmetic repairs or full renovation can help you sell or lease the property faster and at a better price.

• Attractive prices. Secondary properties in popular areas like Palm Jumeirah and Dubai Marina are more affordable than new developments, making these investments very appealing.

Investment Risks

• Hidden defects. It’s crucial to thoroughly inspect the property's condition to assess the potential repair costs.

• Limited choice. The supply of secondary properties may be limited due to high demand.

Conclusions:

Is it relevant to buy secondary real estate now? Yes. By purchasing the right property in the right location at the bottom of the market, an investor gains opportunities: to invest in redesigning the apartment and sell it at a good profit or rent it out and receive passive income.