Local property consultant Core Savills says off-plan property sales are cannibalising the secondary market in Dubai.
Commenting on its Q2 Dubai Residential Market Update 2017, Core Savills said: The growing off-plan supply continues to negatively affect ready property sales. This detrimental effect on the secondary market has been felt particularly for a few apartment districts.
This trend is a result of master developers being able to offer investors more competitive payment plans. Existing owners try and attract the same pool of investors and end-users as they attempt to sell their ready-properties. They contend with highly competitive and attractive payment plans offered by master developers; for instance in Downtown Dubai. With a wider variety of products to offer, developers can retain their edge over individual landlords, hence for now affecting a portion of the secondary market, said Core Savills in the report.
Overall, transaction numbers increased in the second quarter, sales prices began to show signs of recovery, and rentals continued to soften.