When you’re looking for a new property in Dubai, you might wonder whether an off-plan or primary property is a better choice or a secondary property? In fact, this is one of the most important decisions you make when searching for a home. If you’re not sure what the difference is or why it’s important, don’t worry. In this article, all these terms are explained, and we will fully describe the advantages, disadvantages, and features of different types of properties so you can make a more informed decision.

What you will read next:

• What defines a primary property?
• What exactly is an off-plan property?
• How is a secondary property characterized?
• Which option is superior: off-plan property or secondary property?

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What defines a primary property?

As the name suggests, a primary property is a new property being built by a real estate developer. You can buy primary properties directly from the developer’s sales team or through a broker. Buying a primary property means there is no previous owner, and you are primarily buying it from a developer. Primary properties include “off-plan” and “ready” properties. It’s important to note that not all off-plan properties fall into the category of primary properties because some people buy properties from developers and sell them before the unit is completed and delivered. This means the property is “secondary” because you’re not buying from the developer, but you’re still in the off-plan stage.

What exactly is an off-plan property?

“Off-plan” properties in Dubai are properties that are still under construction. This term includes properties in the early stages of planning or construction. Off-plan properties can be an excellent investment option with many benefits, including attractive prices and also the opportunity to secure a property in prime locations before it’s fully developed. Typically, buyers who invest in off-plan properties can expect the value of the property to increase after the construction is completed, making it a popular choice in Dubai’s dynamic real estate market. In the meantime, a “ready” property is a property that is fully built.

In summary, the meanings of “ready” and “off-plan” properties in Dubai’s real estate market are:

Off-plan property: The property is still under construction, and the developer is obliged to specify a certain delivery date.

Ready property: The property building is complete and ready for immediate occupancy.

How is a secondary property characterized?

On the other hand, a secondary property is a property that has previously been owned by someone else and is sold by the owner (not the developer) for profit.

Simply put, secondary properties are properties that are currently rented or under the ownership of the owner and are now on the market for rent or sale.

Also, these types of homes are often located in prestigious neighborhoods. However, sometimes the property owner may decide to sell it. Therefore, some secondary properties can be sold in undeveloped communities.

Which option is superior: off-plan property or secondary property?

Off-plan Properties

Advantages

✓ Latest designs

 Buying a new property means getting the most modern designs and amenities. However, apart from the visual aspects, exploring the primary market has many financial benefits.

✓ Lower price

In the market One of the main advantages of buying primary off-plan properties is that they can be purchased at a price significantly lower than the market. This is because developers often offer deals and discounts that allow you to get more value for your money.

✓ Developer incentives and flexible payment plans

 Some developers cover legal costs such as 4% of Dubai Land Department fees, which makes it financially more attractive. In addition, many developers offer flexible payment plans.

✓ High return on investment

The above factors make primary off-plan properties increase in market value before completion, making it a sound investment (increase in market unit value). In essence, using these financial incentives means buying a primary property at a low price and selling it at a much higher price to make a significant profit. Therefore, primary and off-plan properties in Dubai are considered attractive investments.

✓ Low or zero renovation costs

Another obvious advantage of primary properties is that due to the newness of the units, you will likely have lower repair and maintenance costs.

Disadvantages

✗ Limited supply

Currently, the demand for primary properties is greater than the supply. Therefore, primary units sell out within a few days of developers putting them on the market. Therefore, one of the challenges in trying to find primary units is acting quickly enough.

✗ The project may be abandoned

If you buy an off-plan property, there may be a slight risk, as there is a possibility that developers may abandon the project in case of financial difficulties. However, the relevant authorities have put in place strict regulations to protect people who buy off-plan properties in Dubai.

For example, the Dubai Land Department (DLD) and the Real Estate Regulatory Agency (RERA) require developers to deposit 20% of the project cost into a domestic escrow account. This is just one of the measures in place to ensure that developers have sufficient financial resources to complete the project.

✗ Delivery may not meet expectations

Especially in the case of off-plan primary units, until they are completed, we don’t know exactly what they will look like. Therefore, you face the risk that reality may fall short of the 3D models shown by the developer. For this reason, it is very important to only buy from reputable developers with an excellent track record of delivering high-quality projects on time.

Secondary Properties

Advantages

✓ Known unit and location

Secondary properties are often “ready” properties and are located in prestigious neighborhoods. Accordingly, you will have a better idea of what it feels like to live there, from maintenance to amenities and even your neighbors.

✓ Wide options

As we mentioned earlier, the primary market is very fast. This means that primary properties sell very quickly. They also have stricter restrictions than secondary properties. Therefore, the advantage of exploring the secondary market is that you can have a wider choice and more time to make a decision.

✓ Negotiable and lower prices

Finally, although you don’t have access to developer advertisements, secondary properties can sometimes be more affordable than brand-new units. In addition, with the help of an experienced real estate consultant, you can negotiate for lower prices.

Disadvantages

✗ Renovation costs

On the other hand, one of the disadvantages of buying a property that has been previously purchased or rented is that it may need renovation. The amount of renovation required will be determined by the age of the unit and the level of maintenance carried out by its former owners. In general, if the unit is more than 10 years old, we recommend budgeting appropriately for any repairs.

✗ Outdated design

Additionally, the property’s time on the market might influence its design, potentially lacking the latest and most innovative styles.

✗ Limited payment flexibility

When it comes to the secondary market, the payment plans tend not to be as accommodating as those offered by developers.

FAQ

Is it possible to sell my off-plan property in Dubai?

Yes, you have the option to sell your off-plan property in Dubai, regardless of whether it’s financed or mortgaged. However, if a bank is involved, the process becomes a bit more complex as the property’s loan needs to be settled before a No Objection Certificate (NOC) can be granted to continue with the sale.

What is the antonym of an off-plan property?

The antonym of an off-plan property is a Ready property.

Off-plan properties are those bought based on architectural plans and are still in the construction phase. On the other hand, Ready properties are fully constructed, ready for immediate occupancy, or may already have occupants.

Conclusion

To sum up, both primary and secondary properties have their own sets of pros and cons. The choice between the two will depend on your financial standing, requirements, and how much risk you’re willing to take. For more detailed information, you can visit Homefinder.global where skilled agents are available to assist you in finding properties that best suit your needs.