Nearly two thirds of Dubai property owners polled (64 per cent) plan to sell their respective unit to take advantage of current market conditions and 52 per cent would do so in the next 12 months in return for a good premium, according to a YouGov survey commissioned by Metropolitan Homes, a new division of the Metropolitan Group focusing on Dubai’s secondary market and catering to end-users, investors and wealthy asset owners.
According to the same survey, which polled 300 UAE property owners during the first half of January, 90 per cent of Dubai property owners would purchase another property in the emirate if they sold their existing one at a good premium. Eighty-three per cent said they made significant improvements since they bought their property with 15 per cent of respondents spending over Dh500,000 to renovate their property.
“The YouGov survey results are further indication that UAE homeowners are confident in Dubai as an established property market and that the level of planned activity in the secondary market will continue to fuel transaction volumes in the emirate’s real estate sector,” says Alina Adamco, Head of Sales, Metropolitan Homes. “The survey also found 22 per cent of the survey participants in the 45+ age group plan to retire and live in the UAE permanently.
“Buyers looking to invest in Dubai’s secondary market this year will benefit from the projected increase in the number of current property owners who plan to sell their units. This in turn could help sustain a long-term growth spurt for Dubai’s realty sector backed by favourable market conditions, strong UAE economy fundamentals, the city’s reputation and appeal as a safe and secure investment destination and recent legislation reforms.”
Such reforms include the UAE Golden Visa regulations, residency permits for retirees and the digital nomad trend, all of which work together to attract more investment into real estate in Dubai, as they provide residents with a strong reason to invest in the country and allow non-residents to make the UAE their second home.
Furthermore, future owners of Dubai residential property can make the most out of their investment, as it is estimated that the city’s population will rise from today’s 3.5 million to 5.8 million by 2040, according to industry reports.
“The current and projected market conditions are in favour of owners of Dubai residential properties if they are thinking to sell or rent their units as demand for ready property outperforms supply, especially in sought-after locations,” says Nikita Kuznetsov, Partner Metropolitan Group and CEO of Metropolitan Premium Properties. “Last year, our secondary market transactions increased by 300 per cent so we expect that this trend will continue in the foreseeable future.”
Eighty-one per cent of the Metropolitan Homes – YouGov survey respondents own one or two properties; 89 per cent bought their property in the last five years; 65 per cent said they are currently living in the property they purchased; and 61 per cent said they are looking to upgrade their property after selling their current property.
In addition to Metropolitan Homes, the Metropolitan Group in the UAE includes full-service real estate agencies Metropolitan Premium Properties (Dubai) and Metropolitan Capital Real Estate (Abu Dhabi). The group also includes Luxury Immobilien, a real estate agency in Vienna and Metropolitan Consulting, providing personal and business legal services in the UAE.
This content comes from Reach by Gulf News, which is the branded content team of GN Media.
As an enthusiast deeply immersed in the real estate landscape, particularly in the dynamic Dubai property market, I've closely followed trends, market conditions, and regulatory changes that shape the industry. My commitment to staying informed is demonstrated through my extensive knowledge of the various factors influencing property ownership, investment patterns, and market dynamics.
The recent YouGov survey commissioned by Metropolitan Homes sheds light on the current sentiments and intentions of Dubai property owners. The survey, conducted during the first half of January, reveals that 64% of polled property owners in Dubai plan to sell their units, capitalizing on the present market conditions. What makes this information compelling is not only the high percentage but also the strategic timeframe, with 52% expressing their intent to sell within the next 12 months to secure a favorable premium.
The survey, encompassing 300 UAE property owners, underlines the confidence in Dubai's established property market. Notably, 90% of respondents expressed a willingness to reinvest in another property within the emirate if they could sell their existing one at a premium. This highlights the resilience and attractiveness of Dubai's real estate sector.
Furthermore, the data reveals that 83% of property owners have made significant improvements to their properties since acquisition, with 15% investing over Dh500,000 in renovations. This speaks to the commitment of homeowners to enhance the value of their assets, contributing to the overall appeal of the secondary market.
Alina Adamco, Head of Sales at Metropolitan Homes, interprets the survey results as a positive sign for the real estate sector in Dubai. The planned activity in the secondary market is expected to fuel transaction volumes, indicating a sustained growth spurt. This optimism is grounded in the confidence of UAE homeowners and favorable market conditions, bolstered by a robust economy, Dubai's reputation as a safe investment destination, and recent legislative reforms.
Key legislative changes, such as the UAE Golden Visa regulations, residency permits for retirees, and the growing digital nomad trend, collectively contribute to attracting more investment into Dubai's real estate. These measures provide residents with compelling reasons to invest in the country, while also encouraging non-residents to consider the UAE as their second home.
Looking ahead, the projections for Dubai's population growth, from 3.5 million to 5.8 million by 2040, add another layer of optimism for prospective property owners. This anticipated surge in population is expected to drive demand for residential properties, especially in sought-after locations.
Nikita Kuznetsov, Partner at Metropolitan Group and CEO of Metropolitan Premium Properties, underscores the advantageous market conditions for property owners. He highlights the current demand-supply dynamics, emphasizing that demand for ready properties outperforms supply, particularly in sought-after locations. The statement is supported by the notable 300% increase in secondary market transactions reported by Metropolitan Homes in the previous year, indicating a trend poised to continue.
To contextualize the survey demographics, 81% of respondents from the Metropolitan Homes – YouGov survey own one or two properties, with 89% making their property purchases in the last five years. Additionally, 65% currently reside in the property they bought, while 61% express an interest in upgrading their property after selling the current one.
Beyond Metropolitan Homes, the Metropolitan Group in the UAE comprises full-service real estate agencies, namely Metropolitan Premium Properties (Dubai) and Metropolitan Capital Real Estate (Abu Dhabi). The group extends its reach internationally, encompassing Luxury Immobilien, a real estate agency in Vienna, and Metropolitan Consulting, providing personal and business legal services in the UAE.
In conclusion, the comprehensive data from the YouGov survey, coupled with insights from key industry players within the Metropolitan Group, paints a vivid picture of a buoyant Dubai real estate market. The convergence of market confidence, legislative reforms, population growth projections, and increasing demand positions Dubai as an attractive destination for property owners, investors, and those seeking a secure and thriving real estate market. This information, sourced from Reach by Gulf News, represents a valuable snapshot of the current landscape and future prospects in Dubai's real estate sector.
