Dubai secondary property market boom sparks concern over 'greedy' price push
However, some industry professionals warn that this rapid growth has led certain sellers to adopt "greedy" pricing strategies, seeking returns above prevailing market rates.
According to real estate firm Allsopp & Allsopp, the secondary market outperformed the off-plan segment across several key indicators in the first half of the year.
The total value of sales transactions in the secondary market increased by 46 per cent year-over-year, compared to a 25 per cent rise in the off-plan segment. Average sales prices for secondary properties climbed 15 per cent, while off-plan prices grew by just 5 per cent.
"This trend reflects a shift in buyer demand toward ready, high-quality inventory, driven largely by the ongoing shortage of available villas and townhouses across Dubai," Allsopp & Allsopp noted.
"We've seen a significant shift in buyer focus towards the secondary market,' said Lewis Allsopp, Chairman of Allsopp & Allsopp. 'This level of activity signals growing investor confidence. Wealthy buyers are choosing Dubai not just for its lifestyle but for long-term capital growth and investment returns. The secondary market is showing its strength, especially in the villa and townhouse segment, where demand continues to exceed supply."
In the first half of 2025, apartments accounted for 78 per cent of secondary market transactions by volume, while villas and townhouses made up 22 per cent. However, in terms of price growth and value, villas and townhouses significantly outperformed, reflecting high demand and limited availability of family-oriented homes.
Rising prices and 'greedy' sellers
Despite the positive outlook, some insiders say that a segment of property owners in the secondary market are inflating asking prices.
'There's a lot of greed from sellers – many are demanding more than what the property is actually worth,' said Murtaza Hashmi, CEO of MH Developers. "As a result, we're likely to see some correction in the secondary market later this year. This won't affect the off-plan segment, but it will be a healthy adjustment for secondary sales."
With fewer new villas and townhouses being delivered, many buyers are willing to pay a premium for high-quality, renovated homes in desirable communities. This has prompted a surge in property upgrades, with refurbished homes achieving strong resale values.
'Turnkey, move-in-ready homes are becoming increasingly popular with both end-users and investors, as they offer immediate utility and strong returns,' Allsopp & Allsopp added.
Momentum continues
In the Dh5 million to Dh10 million range, the brokerage reported a 50 per cent increase in sales volume during the first six months of the year. Even more striking, the ultra-luxury segment – properties priced above Dh10 million – saw a 113 per cent surge in transaction volume.
Looking ahead to the second half of 2025, Allsopp & Allsopp expects this trend to continue, with the secondary market, especially villas and townhouses, remaining the key driver of growth. Buyer demand remains robust, and the ongoing scarcity of new, ready-to-move-in homes is likely to keep upward pressure on prices.
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