European investors cause surge in demand in Dubai’s secondary property market: report

Large numbers of European investors are snapping up ready properties in Dubai, resulting in a surge in demand in the secondary market, according to full-service real estate agency Metropolitan Premium Properties (MPP).

The uncertainty in today’s geopolitical climate is driving European investors, business owners, and families to consider Dubai as key business and lifestyle hub, the agency said in a statement.

The increased demand has resulted in the secondary real estate market heating up with prices rising more than 15 percent in the past two months.

Investors primarily from Germany, UK, Italy, and France are buying ready properties in the luxury segment as soon as they are available, especially in popular areas such as Palm Jumeirah, Dubai Marina, Dubai Creek, and Downtown.

For instance, Metropolitan Premium Properties has seen its European client base increase 20 percent in Q1 2022, compared to the same period last year.

Commenting on the market, the Secondary Market Sales and Leasing Director at Metropolitan Premium Properties, Alina Adamco, said: “Dubai is seen as a safe haven and investors are looking to the city’s real estate as a safe investment.

“With more companies offering remote working opportunities, Europeans are relocating their families to Dubai while companies are shifting their base and their staff to the city.  One client from Austria relocating his business to Dubai was looking for AED 200 million in residential property for his employees.”

Adamco added: “Properties in the mid-to luxury segment are most popular with demand outstripping supply. We have seen investors buy super-premium properties whereas earlier they would initially pick up smaller properties or rent before they purchase their forever home. We have seen our secondary market transactions increase three times in Q1 this year which has resulted in a 250 percent sales growth versus the same period last year.”

To cater to this growing demand, Metropolitan Premium Properties is opening a dedicated secondary market office located in Emaar Business Park in the Greens that will cater exclusively to areas including Palm Jumeirah, Dubai Marina, Emaar Beachfront, Bluewaters and Jumeirah Beach Residence.

The CEO of Metropolitan Premium Properties, Nikita Kuznetsov, said: “We are seeing a significant increase from Western European markets for secondary properties. However, there is more demand than there is supply at the moment, which means we are working with other agencies to find stock for our clients.

“Due to this demand we are looking for Branch Managers for our Palm Jumeirah and Dubai Marina operations and are aggressively expanding our secondary market team of area specialists.”

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