Dubai’s off-plan resales on the rise as investors look for quick gains

Dubai’s off-plan resales on the rise as investors look for quick gains

A growing number of real estate buyers in Dubai are reselling the properties they bought off-plan, as they look to cash out with a premium on their investment, according to a new report.

The latest trend, which is reminiscent of the previous market cycle where property investors were flipping their purchase deals for a quick profit, needs to be closely watched to rule out any possibility of a bubble bursting, Property Monitor said in its new report.

As of November 2022, total resale transactions in the emirate went up by 3.2% to 4,425, representing a market share of nearly half (43.4%), according to Property Monitor. The resales transactions refer to any subsequent sale of a property (off-plan or completed) that follows the initial first-time sale from the developer.

A growing portion (18.8%) of the jump in resale activity can be attributed to secondary sales of off-plan properties, the report said.

“The initial buyers, in most cases, are cashing out with a premium in hand. This may seem reminiscent of a trend which occurred in the previous market cycle where flipping and speculation towards short-term gains was rampant,” Property Monitor said.

“However, at this stage, anecdotal evidence points to fortunate buyers who were presented with unplanned