When you start looking for a new property in Dubai, one of the first questions you’ll face is whether you’re interested in off-plan, primary, or secondary properties. This is an important decision in your property search.
If you’re unsure about the differences between these options or why they matter, don’t worry—that’s what this article is here to explain!
We’ll break down what each term means and explore the pros and cons of primary and secondary properties, helping you make a smart, informed choice.
What is a Primary Property?
Primary properties are newly constructed homes or apartments offered directly by a developer. You can purchase these properties either through the developer’s sales team or via a broker.
When you buy a primary property, you’re the first person to own it, as it’s being sold directly by the developer. These properties can be either ‘Off-plan’ (still being built) or ‘Ready’ (fully constructed).
It’s important to note that not all off-plan properties are “Primary.” Some buyers purchase off-plan properties and then sell them before the construction is completed. In such cases, the property is classified as “Secondary” because it’s being resold by someone other than the developer, even though it’s still under construction.
What is an Off-plan Property?
An ‘Off-plan’ property in Dubai refers to a property that is still under construction or in the early planning stages. These properties offer attractive investment opportunities, often at lower prices and in prime locations, allowing buyers to secure real estate before it’s fully developed.
Investing in off-plan properties can be particularly rewarding, as their value typically increases once construction is complete. This makes off-plan properties a popular choice in Dubai’s active real estate market.
On the other hand, a ‘Ready’ property is fully constructed and available for immediate occupancy.
To summarize:
•Off-plan Property: Still under construction, with the developer promising delivery by a specific date.
•Ready Property: Fully built and ready for immediate move-in.
What is a Secondary Property?
In contrast, a secondary property is one that has already been owned by someone else, and the current owner, not the developer, is looking to sell it, often for a profit. Secondary properties are those that are currently rented out or occupied by the owner and are available for resale or rental. These homes are usually found in well-established neighborhoods. However, it’s possible for an owner of an off-plan property to sell it before it’s completed, meaning some secondary properties can still be off-plan, especially in newer communities that are still developing.
Which Is Better: Off-plan Vs Secondary Properties?
Primary Properties: Pros
✓ Latest Designs
Buying a new primary property means you’ll enjoy the latest designs and modern amenities. Beyond the aesthetics, there are several financial benefits to exploring the primary market.
✓ Lower Market Price
One of the biggest advantages of purchasing primary off-plan properties is the lower price. Developers often offer discounts and deals, allowing you to get more value for your money.
✓ Developer Promotions & Flexible Payment Plans
Many developers cover some legal costs, like the 4% Dubai Land Department fee, making the purchase even more financially appealing. Additionally, developers frequently offer flexible payment plans.
✓ Higher Return on Investment
These factors contribute to strong capital appreciation (increase in market value) for primary off-plan properties, even before construction is finished. This means you can buy at a lower price and potentially sell at a much higher one for a substantial profit, making these properties a great investment.
✓ Low or No Refurbishment Costs
Since primary properties are brand new, you’ll likely spend little to no money on refurbishments, adding to the cost-effectiveness.
Primary Properties: Cons
✗ Limited Supply
Currently, the demand for primary properties is higher than the supply. As a result, these units often sell out quickly, sometimes within days of being listed by developers. This means that one of the biggest challenges is acting fast enough to secure a primary unit.
✗ Risk of Project Abandonment
There is a slight risk when buying off-plan properties, as developers might abandon the project if they face financial difficulties. However, Dubai has strict regulations to protect buyers. For example, the Dubai Land Department (DLD) and Real Estate Regulatory Agency (RERA) require developers to deposit 20% of the project’s cost into an escrow account, ensuring that there are enough funds to complete the project.
✗ Delivery Might Not Meet Expectations
With off-plan primary properties, you won’t see the final product until construction is complete. This means the finished property might not exactly match the 3D models or promises made by the developer. To minimize this risk, it’s important to buy only from reputable developers with a strong track record of delivering high-quality projects on time.
Secondary Properties:
✓ Established Unit and Location
Secondary properties are often ‘Ready’ homes located in well-established neighborhoods. This allows you to get a clear sense of what it’s like to live there, including the quality of maintenance, available amenities, and even the type of neighbors you’ll have.
✓ Wider Range of Options
Unlike the fast-paced primary market, where properties sell out quickly, the secondary market offers a wider range of choices. This means you’ll have more options to consider and more time to make a decision.
✓ Negotiable & Often Lower Prices
While you may not get developer promotions, secondary properties can sometimes be more affordable than brand-new units. Plus, with the help of a skilled real estate agent, you can often negotiate the price, ensuring you get excellent value for your money.
Secondary Properties: Cons
✗ Renovation Costs
One downside of buying a previously lived-in or leased property is that you might need to spend money on renovations. The extent of the work will depend on the property’s age and how well it was maintained by the previous owners. If the unit is over 10 years old, it’s wise to budget for potential repairs and renovations.
✗ Older Design
Another potential drawback is that older properties may not feature the latest designs or modern amenities, especially if they’ve been on the market for a while.
✗ Less Flexible Payment Plans
Unlike in the primary market, secondary properties typically don’t come with the flexible payment plans that developers often offer.
Can I Sell My Off-Plan Property in Dubai?
Yes, you can sell your off-plan property in Dubai, even if it’s financed or under a mortgage. However, if a bank is involved, the process requires some extra steps. The loan on the property must be paid off before a No Objection Certificate (NOC) can be issued, allowing the sale to proceed.
What is the opposite of off-plan property?
The opposite of an off-plan property is a Ready property.
- Off-plan properties are purchased based on architectural plans and are yet to be constructed.
- Ready properties are those that have been fully built, are available for immediate move-in, or are already occupied.
In conclusion, both primary and secondary properties have their pros and cons. The right choice depends on your budget, needs, and how much risk you’re comfortable with.
For personalized advice on your property-buying journey, contact Marjeena for expert help tailored to your needs.
