Over half of Dubai property owners would sell their units this year, YouGov study shows
Survey commissioned by Metropolitan Homes also finds 90 per cent would purchase another property in the Emirate after selling their existing one
Almost 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. A further 83 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.
Alina Adamco, head of sales, Metropolitan Homes, said: "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. 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," she added.
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," said Nikita Kuznetsov, partner at 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."
Other highlights of the Metropolitan Homes - YouGov survey include:
• 81 per cent of respondents own one or two properties
• 89 per cent of the respondents bought their property in the last five years
• 65 per cent said they are currently living in the property they purchased
• 61 per cent said that 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 LLC (Abu Dhabi). The Group also includes Luxury Immobilien GmbH, a real estate agency in Vienna and Metropolitan Consulting FZE, providing personal and business legal services in the UAE.