More than 50% of local residential property owners would sell their unit within 2023

As revealed by a YouGov survey, 64% of property owners in Dubai are considering selling their asset to benefit from the current market climate, and 52% would do so during this year (2023). This study was commissioned by Metropolitan Homes, which is a new department of Metropolitan Group that specializes in secondary properties. The division provides a wide array of high-quality services, from sales and rentals, to property management of different real estate categories.

On top of that, according to the survey, which registered the participation of 300 UAE real estate owners at the beginning of the year, 90% of homeowners would acquire another unit in Dubai if the sale would result in a decent premium. At the same time, 83% of respondents stated that they have improved their property significantly, with 15% of survey participants spending more than AED 500,000 (USD 136,000) on renovation.

Alina Adamco, Head of Sales, Metropolitan Homes, said that the results of the survey clearly illustrate the confidence of local homeowners in Dubai’s real estate sector. Additionally, the level of planned activity in the secondary segment will keep pushing transaction volumes. It is worth noting that according to the survey, 22% of respondents aged over 45, plan to retire and reside in the UAE on a permanent basis.

Those who invest in Dubai’s secondary market property this year will take advantage of the expected increase in the number of prospective sellers. As a result, Dubai’s realty sector will keep growing, whilst beneficial market conditions, a strong economy, Dubai’s investment appeal, and recent reforms, such as the UAE Golden Visa amendments and residency permits for retirees, will help sustain a long-term expansion.

As well as all the above, future owners of residential real estate in Dubai have the opportunity to capitalize on their investment, amidst the estimated growth of the city’s population up to 5.8 million by 2040 from the current 3.5 million. This projection was published in the Dubai Media Office report back in April 2022.

According to Nikita Kuznetsov, Partner of Metropolitan Group and CEO of Metropolitan Premium Properties, the current and expected market climate is favourable for Dubai’s homeowners if they plan to either sell or rent their assets, since the demand for completed units is larger than supply. In 2022, the company witnessed a whopping 300% increase in secondary market transactions and this tendency is highly likely to continue in the near future.

The YouGov survey of Metropolitan Homes also revealed the following:

• 81% of participants have 1 or 2 property assets
• 89% of interviewees acquired their real estate within the last 5 years
• 65% are currently residing in the acquired property
• 61% plan to make improvements to their property after selling their current asset

Besides Metropolitan Homes, Metropolitan Group comprises Metropolitan Premium Properties and Metropolitan Capital Real Estate, operating in Dubai and Abu Dhabi. The group also includes Luxury Immobilien GmbH, which is a Viennese real estate agency, and Metropolitan Consulting FZE, which focuses on personal and business legal services in the UAE.