{"id":22611,"date":"2019-02-04T16:22:34","date_gmt":"2019-02-04T12:22:34","guid":{"rendered":"https:\/\/www.propertyfinder.ae\/blog\/?p=22611"},"modified":"2024-09-24T16:53:03","modified_gmt":"2024-09-24T12:53:03","slug":"trends-v5-the-pros-and-cons-of-investing-in-off-plan-vs-secondary-markets","status":"publish","type":"post","link":"https:\/\/www.propertyfinder.ae\/blog\/trends-v5-the-pros-and-cons-of-investing-in-off-plan-vs-secondary-markets\/","title":{"rendered":"The Pros and Cons of Investing in Off-Plan vs. Secondary Markets \u2014 by Rabiah Shaikh"},"content":{"rendered":"

The pros and cons of investing in Dubai’s off-plan and secondary property markets.<\/b><\/h2>
\"The<\/figure>

A real estate investor often struggles with deciding between primary (off-plan) investments<\/a><\/strong> versus secondary (resale) investments<\/strong>. This difficult choice becomes compounded in growing markets where primary sales are a significant portion of the volumes, as opposed to economies where the majority of the volumes are in the secondary space due to few new developments. For example, a market like Dubai has significantly geared towards primary sales in the last three years.
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A larger number of primary transactions is usually a sign of vibrant economic activity as it indicates new developments are required for the demand of a growing city, which could be led by either better job prospects – as is the case with Dubai (shown in the chart below) – or increasing urbanisation in a country such as India.<\/p>

\"Off-Plan
Off-Plan Transaction Volume 2017 – 2018<\/strong><\/figcaption><\/figure>

Similarly, a healthy secondary market is also required as it is a sign of a balanced supply and demand market.
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Apart from the greater share of primary transactions, the current Dubai market can also be characterised along the following parameters:<\/p>