Dubai secondary property market boom sparks concern over 'greedy' price push
However, some industry professionals warn that this rapid growth has led certain sellers to adopt "greedy" pricing strategies, seeking returns above prevailing market rates.
According to real estate firm Allsopp & Allsopp, the secondary market outperformed the off-plan segment across several key indicators in the first half of the year.
The total value of sales transactions in the secondary market increased by 46 per cent year-over-year, compared to a 25 per cent rise in the off-plan segment. Average sales prices for secondary properties climbed 15 per cent, while off-plan prices grew by just 5 per cent.
"This trend reflects a shift in buyer demand toward ready, high-quality inventory, driven largely by the ongoing shortage of available villas and townhouses across Dubai," Allsopp & Allsopp noted.
"We've seen a significant shift in buyer focus towards the secondary market,' said Lewis Allsopp, Chairman of Allsopp & Allsopp. 'This level of activity signals growing investor confidence. Wealthy buyers are choosing Dubai not just for its lifestyle but for long-term capital growth and investment returns. The secondary market is showing its strength, especially in the villa and townhouse segment, where demand continues to exceed supply."
In the first half of 2025, apartments accounted for 78 per cent of secondary market transactions by volume, while villas and townhouses made up 22 per cent. However, in terms of price growth and value, villas and townhouses significantly outperformed, reflecting high demand and limited availability of family-oriented homes.
Rising prices and 'greedy' sellers
Despite the positive outlook, some insiders say that a segment of property owners in the secondary market are inflating asking prices.
'There's a lot of greed from sellers – many are demanding more than what the property is actually worth,' said Murtaza Hashmi, CEO of MH Developers. "As a result, we're likely to see some correction in the secondary market later this year. This won't affect the off-plan segment, but it will be a healthy adjustment for secondary sales."
With fewer new villas and townhouses being delivered, many buyers are willing to pay a premium for high-quality, renovated homes in desirable communities. This has prompted a surge in property upgrades, with refurbished homes achieving strong resale values.
'Turnkey, move-in-ready homes are becoming increasingly popular with both end-users and investors, as they offer immediate utility and strong returns,' Allsopp & Allsopp added.
Momentum continues
In the Dh5 million to Dh10 million range, the brokerage reported a 50 per cent increase in sales volume during the first six months of the year. Even more striking, the ultra-luxury segment – properties priced above Dh10 million – saw a 113 per cent surge in transaction volume.
Looking ahead to the second half of 2025, Allsopp & Allsopp expects this trend to continue, with the secondary market, especially villas and townhouses, remaining the key driver of growth. Buyer demand remains robust, and the ongoing scarcity of new, ready-to-move-in homes is likely to keep upward pressure on prices.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The National
37 minutes ago
- The National
Brics leaders condemn attacks on Iran and tell Israel to leave Gaza
Brics leaders condemned US and Israeli attacks on Iran and called on Prime Minister Benjamin Netanyahu's government to withdraw troops from the Gaza Strip, urging 'just and lasting' solutions to conflicts across the Middle East. In a joint statement released early on Monday morning, leaders gathered in Brazil agreed to denounce military strikes against Iran, a Brics member, since June 13, when Israel began attacks that culminated with US airstrikes nine days later. The strikes 'constitute a violation of international law and the Charter of the United Nations,' according to the declaration. The 10-member bloc of emerging-market nations also expressed 'grave concern about the situation in the Occupied Palestinian Territory' — citing Israeli attacks and the obstruction of the entry of humanitarian aid into Gaza, something Israel denies — while calling for a permanent and unconditional ceasefire, along with the release of all hostages. The language is part of a broader call for global multilateral institutions, including the United Nations Security Council, to promote peaceful resolutions to ongoing military conflicts in the Middle East, Africa and Europe. While it doesn't single out the US, it is likely to be seen as an unwelcome intervention in Israeli affairs as Netanyahu prepares to meet US President Donald Trump at the White House on Monday, Bloomberg reported. 'South Africa remains gravely concerned at the deteriorating peace and security situation in the Middle East,' President Cyril Ramaphosa told fellow leaders during his opening statement Sunday in Rio de Janeiro. 'The recent attacks by Israel and the United States on the Islamic Republic of Iran raise serious concerns of international law, including the principles of sovereignty, territorial integrity and the protection of civilians.' Defence spending and tariffs Brics leaders additionally 'express alarm' at the current trend of 'a critical increase in global military spending.' That's another clash with Trump's demand that Nato countries raise defence spending to 5 per cent of gross domestic product, a request that was met at last month's summit of alliance members in The Hague with a particular focus on facing down aggression by Russia, a founding Brics member. Brics leaders also expressed 'serious concerns' about the rise of unilateral tariff and non-tariff measures, which distort trade and are inconsistent with WTO rules,' again without mentioning the US. Brazilian President Luiz Inacio Lula da Silva, who is hosting the two-day summit, opened Sunday's session by reiterating the group's longstanding calls to reform the Security Council to make it more representative of the Global South. The Brics bloc, named for Brazil, Russia, India, China and South Africa, recently expanded to add Indonesia, Ethiopia, the United Arab Emirates, Iran and Egypt as members, an effort to increase its clout in global affairs long dominated by Washington and the West. 'Brics is increasingly shaping global debates on development, multipolar governance and security matters,' Mr Ramaphosa said in his remarks. 'We must continue to advocate for the urgent intensification of diplomatic efforts to de-escalate tensions and ensure sustainable and lasting peace.'
Khaleej Times
6 hours ago
- Khaleej Times
UAE authority clarifies no Golden Visa issuance for crypto investors
The information circulating on some websites and social media platforms regarding the UAE granting golden residency to cryptocurrency investors is false, authorities confirmed. The clarification was issued in a joint statement issued by the Federal Authority for Identity and Citizenship, Customs and Ports Security, the Securities and Commodities Authority, and the Virtual Assets Regulatory Authority (VARA).
Gulf Business
6 hours ago
- Gulf Business
Kuwait launches new e-visa platform to boost travel, digital efficiency
Image: Getty Images Kuwait has officially launched a new electronic visa (e-visa) system, aimed at simplifying and accelerating entry procedures for travelers, residents, and official visitors, as part of its broader digital transformation and tourism strategy. The newly implemented platform, managed by the Ministry of Interior, supports four visa categories — tourist, family, business, and official — and is expected to reduce processing times and eliminate administrative hurdles. The tourist visa allows a stay of up to 90 days and is designed for individuals wishing to explore Kuwait's cultural and leisure offerings. The family visa, valid for 30 days, enables Kuwaiti residents to invite relatives for short-term stays, facilitating family reunification. The business visa, also valid for 30 days, is tailored to foreign professionals, entrepreneurs, and corporate representatives visiting for meetings, events, or commercial negotiations. The official visa category is granted to diplomats and government delegations on formal missions, including international conferences and bilateral meetings, based on invitations from Kuwaiti authorities. How to apply on the e-visa platform The e-visa platform is accessible through the Ministry of Interior's official The move aligns with Kuwait's long-term strategy to enhance digital public services and reinforce its position as a key destination for tourism, investment, and diplomacy. The new system complements other regional initiatives, including the anticipated Read:
