Realtors attributed it to “trust” and bank financing
The real estate market is witnessing an increase in the demand for ready-made properties against the "plan"
The recent period witnessed a greater movement of ready-made properties.
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Realtors confirmed that the data for the first months of this year indicate an increase in the demand for ready-made properties compared to off-plan properties, by 20% compared to the period before the pandemic of the “Corona” virus (Covid-19).
In statements to "Emirates Today", they attributed this growth to confidence in investing in ready-made real estate and banking financing facilities.
Reports and figures
The figures for real estate transactions in Dubai showed that the secondary market / ready units, during the past seven months of this year, continued its upward performance, as the Dubai Land Department (Dubai Lands) documented 14,037 resale transactions of various properties, With a total value of more than 36.8 billion dirhams.
Real estate reports issued by real estate consultancy institutions also revealed an increase in confidence in ready-made properties, as a report by Chestertons, a company specialized in the real estate services sector, stated that the total value of transactions in Dubai, during the second quarter of this year, witnessed a remarkable increase of nearly 50% over On a quarterly basis, ready-made real estate sales constituted 71% of the total value of transactions, and 59% in terms of volume.
In turn, a report by the "Property Finder" website, which specializes in real estate, indicated that the secondary market/ready units acquired, in June 2021, 62.2% of the total real estate sales, while off-plan sales accounted for 37.8%.
Ready real estate
In addition, the Chairman of the Board of Directors of Al-Waleed Investment Company, real estate expert Muhammad Al-Mutawa, said that ready-made properties have more credibility with investors in the market, compared to off-plan properties.
He added, "During the (Corona) pandemic crisis, the dealers were in a hurry to buy a ready-made property, as many of them preferred to see the real estate eye for the project, and not buy on the map," noting that everyone preferred to see the nature of the property, whether in terms of the spaciousness of the rooms or the size of the rooms. The hall, as most people are not aware of the actual measurements of the spaces, especially when purchasing on the plan, but the situation on the ground is different, and therefore the demand for ready-made properties has increased.”
Al-Mutawa confirmed that prices in ready-made real estate areas increased by 20%, expecting that things will return to normal with the recovery from the repercussions of the “Covid-19” pandemic.
bank support
For his part, the real estate consultant, Muhammad Al-Hafiti, said that the demand for ready-made properties receives support from individuals' tendency to sell the units available to them, in addition to the support of banks to finance these units directly.
Al-Hafeiti added that there is a large group of investors, who have become more confident in ready-made properties, for easy inspection and knowledge of their specifications, and to ensure the quality of construction and finishes.
He continued, "There is also a demand for off-plan projects, especially quality ones, and since the Dubai government supports quality projects, there are still many real estate developers who put quality projects off the map, and there are many investors who buy off the map."
He stated that the recent period witnessed a greater movement on ready-made properties, exceeding the natural ratio, which usually constitutes a difference between ready-made and off-plan properties, expecting that the turnout for off-plan projects will be equal in the near future.
the most important reasons
In the same context, the real estate expert, Muhammad Al Ali, said that the most important factors behind the rise in sales of ready-made properties versus off-plan properties are that off-plan properties take time, and therefore investors from abroad prefer ready-made properties.
Al Ali believed that real estate on the map is better for real estate investment, if it is from a secured developer, given that the price of the property is better than its high ready counterpart, pointing out that the foreign investor prefers to buy ready property, then invest on the map.
Al Ali continued: “We are always looking for the lowest cost and highest profit, and when buying a ready-made property at a high price, it generates a profit, but it is not the appropriate profit, and ready-made properties include cash payment of 75% of the property value, and the remaining percentage is in installments for two years or more. Three years, according to the real estate developer, but in the case of buying a property off-plan, the installments are paid for a period ranging from five to seven years, and this is a very excellent installment.”
He explained that the advantages of ready-made property are that you pay and receive immediately, while the negatives are that the price is high compared to the price of the property on the map, but with the delay in some projects that take a period of time, the demand for any type is due to the preferences of the investors themselves.
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