When a client asks you "Should I buy off-plan or resale?" your answer shapes their investment journey. To advise effectively, you need to understand both markets deeply.
This guide breaks down the primary and secondary markets in Dubai, helping you serve any client regardless of their investment preference.
Quick Definitions
🏗️ Primary Market (Off-Plan)
Buying directly from the developer. The property may be under construction (off-plan) or newly completed (ready primary). Payment plans are typically offered.
🏠 Secondary Market (Resale)
Buying from a current owner. The property exists, has history, and is immediately available. Full payment (or mortgage) required.
Primary vs Secondary: Side-by-Side Comparison
| Factor | Primary (Off-Plan) | Secondary (Resale) |
|---|---|---|
| Payment | Payment plans (40/60, 50/50, post-handover) | Full payment or mortgage |
| Price | Usually 10-20% below market at launch | Market price |
| Risk | Construction delays, quality uncertainty | What you see is what you get |
| Timeline | 1-4 years until handover | Immediate possession |
| Data Available | Developer brochures, artist renders | DLD transactions, rental history, building data |
| Commission | 3-7% from developer | 2% standard (buyer/seller) |
| Golden Visa | Only after handover (AED 2M+) | Immediate if property qualifies |
| Rental Income | None until handover | Immediate if tenant in place |
Understanding the Primary Market
How Off-Plan Works
- Project Launch: Developer announces new project with initial prices
- Reservation: Buyer pays booking fee (typically 5-10%)
- SPA Signing: Sale and Purchase Agreement signed within 30 days
- Construction Payments: Linked to construction milestones
- Handover: Property completed, final payment made
- Title Deed: DLD registration completed
Typical Payment Plans
| Plan Type | During Construction | On Handover | Post-Handover |
|---|---|---|---|
| Standard | 60% | 40% | - |
| 60/40 | 60% | 40% | - |
| 50/50 | 50% | 50% | - |
| Post-Handover | 30-40% | 10-20% | 40-50% (2-5 years) |
| 1% Monthly | 1% per month | Remainder | - |
Top Dubai Developers (Primary Market)
- Emaar: Dubai's largest. Downtown, Dubai Creek, Dubai Hills, Arabian Ranches
- DAMAC: Luxury focus. Business Bay, DAMAC Hills, Cavalli Tower
- Nakheel: Palm Jumeirah, Dragon City, Jumeirah Islands
- Sobha: Quality construction. Sobha Hartland, Sobha One
- Meraas: Lifestyle developments. Bluewaters, La Mer, City Walk
- Dubai Properties: JBR, Business Bay, Mudon
- Azizi: Affordable luxury. Riviera, Creek Views
Who Buys Off-Plan?
- Investors seeking capital appreciation during construction
- Buyers who can't afford full payment upfront
- Those who want to customize finishes (in some projects)
- Investors who plan to flip before/at handover
- Long-term end-users planning ahead
Understanding the Secondary Market
How Resale Works
- Property Identified: Buyer finds suitable property
- Viewing & Negotiation: Price agreed between parties
- MOU Signed: Memorandum of Understanding with 10% deposit
- NOC Obtained: Developer issues No Objection Certificate
- Transfer: DLD transfer at trustee office
- Title Deed: Issued to new owner immediately
Secondary Market Costs
| Cost | Who Pays | Amount |
|---|---|---|
| DLD Transfer Fee | Buyer (usually) | 4% of sale price |
| Agency Commission | Seller (usually) | 2% of sale price |
| NOC Fee | Seller | AED 500-5,000 |
| Trustee Fee | Split 50/50 | AED 4,000-8,000 |
| Mortgage Registration | Buyer (if applicable) | 0.25% of loan |
Who Buys Secondary?
- End-users who need immediate occupancy
- Investors seeking rental income from day one
- Buyers who want to see exactly what they're getting
- Golden Visa applicants who need immediate eligibility
- Those who prefer established communities
Which Clients Should Go Primary vs Secondary?
✅ Recommend Primary When:
- Client has limited upfront capital but steady income
- Timeline is flexible (2-4 years)
- Client wants maximum capital appreciation potential
- Client is willing to accept construction risk
- Location/project has strong developer track record
✅ Recommend Secondary When:
- Client needs immediate occupancy
- Client wants rental income from day one
- Client needs Golden Visa immediately
- Client wants to see actual property before buying
- Client prefers established communities with track record
"The best brokers don't push one market over the other. They match the market to the client's actual needs and timeline."
Working Both Markets: The Dual Strategy
The most successful Dubai brokers don't specialize in just one market. They master both:
Primary Market Strategy
- Build relationships with developer sales teams
- Get early access to launches and VIP pricing
- Understand payment plans deeply
- Track construction progress for client updates
- Know which developers deliver on time
Secondary Market Strategy
- Access DLD transaction data for accurate pricing
- Build inventory through off-market sourcing
- Know building-level performance metrics
- Understand rental yields by area
- Track historical appreciation trends
The Data Advantage in Both Markets
For Primary Market
Data helps you advise clients on:
- Is the launch price fair compared to nearby secondary market?
- What did previous phases sell for and at what price appreciation?
- What's the rental yield in comparable completed buildings?
- How does this developer's track record compare?
For Secondary Market
Data is essential for:
- Accurate property valuation based on actual transactions
- Building-specific rental yields and occupancy
- Historical appreciation trends
- Service charge comparisons
- Days on market analysis
Why Data Matters More in Secondary
In the primary market, developers provide all the information (biased toward selling). In the secondary market, brokers with data win. You're the expert clients rely on for accurate market intelligence.
Common Mistakes to Avoid
Primary Market Mistakes
- ❌ Selling only based on developer materials without due diligence
- ❌ Ignoring developer's track record on timing and quality
- ❌ Not explaining post-handover plan implications
- ❌ Promising appreciation without market context
Secondary Market Mistakes
- ❌ Using listing prices instead of transaction data for valuations
- ❌ Not knowing service charge differences between buildings
- ❌ Ignoring building-specific factors (management, maintenance)
- ❌ Not verifying ownership and clearance before marketing
Market Trends for 2025
Primary Market Trends
- More post-handover payment plans to attract buyers
- Branded residences growing (Armani, Bugatti, Mercedes)
- Focus on sustainability and smart home features
- New areas emerging: Dubai South, Dubai Creek Harbour
Secondary Market Trends
- Prices in premium areas continuing to rise
- Increased demand from Golden Visa seekers
- Data-driven pricing becoming standard
- Off-market deals increasing in luxury segment
Tools for Success in Both Markets
To serve clients in both primary and secondary markets, you need:
- Developer Relationships: Direct access to launches and pricing
- DLD Data Access: Transaction history for secondary valuations
- Rental Analytics: EJARI data for yield calculations
- Building Database: Service charges, management quality, facilities
- Market Trends: Price movements by area and property type
FalconPro provides comprehensive data coverage for both primary and secondary markets, giving you the intelligence to advise clients regardless of their preferred investment strategy.