According to trends from Property Finder listing data, Vacant on Transfer (VOT) has become a more regularly used term on secondary properties listed for sale. VOT, meaning a unit that is available immediately upon handover, is a term that came into widespread use in 2018 as prices declined in the secondary market, making the market more appealing to end users.
VOT would allow end users to move into the property they purchase and not have the hassle of waiting for existing tenants to vacate after the 12 month notice period.
The secondary market saw price declines of up to double digits in some areas in 2018 making prices much more appealing and affordable than in previous years to consumers,” says Lynnette Abad, Director, Research and Data. This trend prompted end-users to shift their sights from the off-plan market to a less risky secondary market. This, coupled with the addition of 28,890 new units completed in 2018 has made the secondary market that much more interesting.
Secondary sales transfers increased by 12% in 2018 compared to 2017 while off-plan sales saw a decline of 27.7% in 2018 compared to 2017.
Top transacted areas for off-plan sales
Overall, the top transacted areas for off-plan sales were Mohammed bin Rashid City (+30% increase), Business Bay (+6% increase), Jumeirah Village Circle (-30% decrease), International City (+530% increase) and Downtown Dubai (-45% decrease).
Top transacted areas for secondary sales for apartments
The top transacted areas for secondary sales for apartments were Dubai Marina (-11.8% decrease), International City (-8.9% decrease), Dubai Sports City (+15.9% increase), Jumeirah Village Circle (+6.3% increase) and the Palm Jumeirah (+19.6% increase).
Top transacted areas for secondary sales for villas/townhouses
The top transacted areas for secondary sales for villas and townhouses were Emirates Living (+6.4% increase), Arabian Ranches (+7% increase), Mudon (+286% increase), Al Furjan (+468% increase) and Town Square (+368% increase).
With the amount of new supply coming into the market, 2019 is not expected to slow down either, the secondary market will most likely continue to be attractive to end users and those looking to get on the property ladder with less risk.
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READ MORE:
Off-plan vs. Ready Property: The Age Old Question — Safura Abasniya
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