The main difference is the cost of real estate.
Objects under construction are ~ 20% cheaper than ready-made housing, which has been in operation for 2-3 years.
But it all depends on the specific object and its uniqueness. For example, there is no exception when real estate in a house under construction is sold more expensive than apartments in a ready-made complex.
The issue of investments also becomes important. Or rather, when you will be able to earn income. The secondary market definitely wins here. Buying a ready-made property, you can immediately rent an apartment or wait for the right course and profitably sell an investment tool.
With the primary market, everything is much more complicated: first you will have to wait for the completion of work, commissioning of the entire complex, wait for the completion of repair work in the apartments and only then you will be able to arrange the rental procedure.
Of course, if a particular housing on the primary market is sold much cheaper or is something unique, then it is advisable to invest in such a purchase and wait for a profit.
An important difference is the payment plan. When buying a residential complex under construction, it is necessary to make a contribution of 20% of the cost of housing. The remaining amount can be paid after the complex is put into operation. In the case of secondary housing, the buyer must pay 100% of the cost immediately. But in real estate practice, there have been cases when the seller agreed to some stages of installments.
Demand for primary housing
There is a huge demand for new housing in Dubai, and it is only increasing every year. Real estate prices are projected to increase by ~ 10% per year.
The growth is explained by the following reasons:
- Affordable pricing and excellent profitability;
- flexible taxation system — the absence of personal income tax allows you to receive rental income in full;
- obtaining a resident visa
- a high standard of living in a modern house, usually with a unique architecture
- no effect of inflation on rental and sale income
- the developer can independently pay a fee in DLD in the amount of 4% of the cost of the object.
The process of buying real estate in the primary market of Dubai follows a standard scheme: the choice of an object, the conclusion of a primary contract, an advance payment. It is necessary to renew the contract for obtaining a certificate of ownership after the completion of construction.
For convenience, security and saving your time, you can ask for help from professional brokers who will help you choose the best option specifically for you. EVA Real Estate are leading experts in the field of real estate. They will not only help you choose the right option, but also organize the entire process of collecting documents, solve all related issues and determine the most favorable offers.
Advantages of the secondary market
- Availability and reliability. Buying a second home, you have the opportunity to look at it live, look into literally every corner, as well as chat with neighbors or read formulas about a particular residential complex
- Loyal tax policy. The taxation system for the purchase / sale of secondary real estate in Dubai is the most favorable for investors. 2% of the cost of the object
- Quick check-in or rental of apartments literally the next day
- Formed infrastructure
- The opportunity to obtain a resident visa for two years with an investment of only 750 thousand dirhams (~ $ 204,000).