Dubai’s secondary property market is said to display signs of a slowdown, recording a drop of 10.2% in August 2023, compared to a year ago after experiencing explosive growth on the back of high investor demand, based on a report of Zawya news agency.
Despite the persistently high levels of inflation in the global economy and rising interest rates, Dubai has stood to outperform its peers. Average prices shot up by 19.6% in August, compared to 18.1% rise in July, reported Zawya. The total volume of transactions reached 79,605, the highest on record over this period, registering a 41.7% increase from the previous year.
Secondary property, otherwise called the vacation home, had pent-up demand from tourists along with rise in consumers’ discretionary spending led to the recovery of the real estate sector in Dubai after the ease of COVID-19 restrictions.
With the end of pandemic, secondary market in Dubai showed its best performance during the months that followed after the relaxation of COVID-19 restrictions, said the report. This rise in demand is primarily credited to investors coming from markets overseas, including France, the United Kingdom, Italy, and Russia.
However the report also highlighted off-plan properties, or in simple terms properties under construction, saw a 58.7% growth from a year ago, according to real estate adviser Coldwell Banker Richard Ellis (CBRE). CBRE did not specify what has been behind the slowdown in the secondary market.
