What is better: Primary or Secondary in Dubai? Sorting out the nuances

Choosing between Primary and Secondary real estate in Dubai is a crucial
decision for any potential buyer. Whether you’re investing or purchasing a home
for personal use, each property type comes with its unique features and
advantages. In this article, we’ll explore the key factors that will help you
make the right choice. In this article, we’ll explore the main types of real
estate in Dubai, provide an overview of the current market conditions, and
highlight the most interesting areas for investment.

Understanding Primary and Secondary Property Markets

Primary Property refers to new developments offered directly by developers.
These properties are often under construction or recently completed, but haven’t
yet been sold. It’s important to note that fully completed and ready-to-move-in
units directly from developers are rare. Secondary Property includes properties
that have already been owned and sold before. This market comprises apartments,
houses, and villas that have been occupied for some time. “The transaction cycle
on the primary market typically takes a few weeks, whereas on the secondary
market, it can take up to 90 days, depending on the mortgage process,” — says
Livrichy client manager Liza Tkachenko.

Key differences:

• Primary Property is brand new, while secondary property may require repairs
  or updates.
• Developers often offer discounts and promotions on primary properties, while
  secondary property prices depend on market conditions and the state of the
  property.
• Purchasing a Primary property might mean waiting for the construction to be
  completed, whereas a secondary property is ready for immediate occupancy.

Advantages of Primary Real Estate in Dubai

Buying primary real estate in Dubai comes with significant benefits, especially
for those seeking modern and high-tech solutions. Here are five key advantages:

1. New developments often feature cutting-edge architectural designs and modern
   amenities, including smart home systems.
2. Purchasing a new property comes with developer guarantees on construction
   quality, reducing risks.
3. Units come with high-quality finishes, often including built-in appliances,
   a ready bathroom, and parking space.
4. New properties are free of wear and tear, ensuring that all systems function
   flawlessly.
5. Developers frequently offer installment plans, making the purchase more
   accessible.

Advantages of secondary real estate in Dubai

Secondary real estate in Dubai remains in high demand due to its proven
reliability and convenience. Here are five reasons it remains attractive to
buyers:

1. 1. No need to wait for construction completion — you can move in right after
      closing the deal.
   2. Secondary properties are located in established areas with developed
      infrastructure, providing everything needed for comfortable living.
   3. When buying a secondary property, you can assess the neighborhood’s
      atmosphere, amenities, and community.
   4. Some properties are sold fully furnished and equipped, reducing your setup
      costs.
   5. There’s often room to negotiate the terms of the deal and price with the
      seller.

Factors Influencing the choice between primary and secondary property

When choosing real estate in Dubai, it’s crucial to consider not just the
purchase price but also additional costs: taxes, fees, repairs, and furnishing.
Primary Property is often attractive due to installment plans and developer
promotions, but may require significant investments in finishing. Secondary
property might be more affordable if it’s already equipped with everything
necessary. For investors, it’s essential to understand that primary property may
see significant value appreciation as construction nears completion, while
Secondary Property might be more profitable for rental income. If you need a
home “now,” Secondary Property is the best choice. However, if you’re willing to
wait, new developments may offer more modern living conditions. Primary real
estate is often located in developing areas, while secondary property is in
established zones with well-developed infrastructure. Your choice depends on
your preferences: a quiet new neighborhood or a well-established area with a
thriving social infrastructure.

Economic Aspect: Return on Investment in Dubai

Secondary Property can generate income immediately after purchase, whereas
primary real estate may require time for construction completion and
commissioning. Primary real estate has a high potential for value appreciation
as construction progresses and infrastructure improves. Secondary Property,
especially in prestigious areas, can also show steady price growth, but this
depends on the current market condition. “Primary real estate in the Emirates
appreciates by approximately 15% upon completion over 2–3 years,” — emphasizes a
Livrichy agent. Investing in primary property can be riskier due to potential
construction delays, but this is offset by the possible increase in value.
Secondary Property is less risky but requires a thorough inspection of the
property’s condition before purchase.

Legal and Tax Considerations in Dubai

Rules for Buying Primary and Secondary Property

Buying property in Dubai is regulated by strict rules for both primary and
secondary housing. For primary property, ensure the developer’s reliability and
that all permits are in place. Secondary Property requires checking the
property’s history and legal cleanliness of the transaction.

Tax Features for Different Property Types

Dubai does not have property and income taxes, making it particularly attractive
to foreign investors. However, there are registration fees and commissions that
need to be factored into the purchase.

“When purchasing Primary Property in the Emirates, the registration fee to the
Land Department is 4%. On the secondary market, additional fees for
documentation, roughly $2,000, and the agency’s commission — typically 2% of
the property’s value — should be considered, increasing the total purchase
cost,” — explains Liza Tkachenko.

Impact of Legislation on Property Type Selection

Dubai’s legislation protects buyers’ rights regardless of the type of property.
It’s crucial to understand the rules and follow expert recommendations to avoid
potential problems.

Expert Recommendations on Choosing Primary or Secondary Property in Dubai

Livrichy agents are well-versed in every area and property in Dubai. They
carefully analyze which properties will yield profits and which could be
unprofitable. Here’s what our specialists suggest:

1. Determine what’s more important for you — immediate move-in or waiting for
   modern housing.
2. Consider not just the purchase price, but also potential additional costs
   for repairs and documentation.
3. If you value developed infrastructure, choose established areas with
   secondary property.
4. If investing, analyze potential rental income and price growth.

Which Should You Choose: Primary or Secondary Property?

The answer depends on your goals, budget, and timeframe. Primary Property offers
modernity and value appreciation potential, but requires time and patience.
Secondary Property is a ready solution with access to developed infrastructure,
but may require renovation investments. Livrichy specialists will help you
navigate all the nuances, from legal aspects to market analysis and potential
profitability calculations. By choosing Primary or Secondary Property with Livrichy,
you’ll receive professional guidance and confidence in long-term benefits.