Vacant on Transfer (VOT) has become the new market buzzword, while secondary market sales transfers showed an uptick in transactions in 2018, according to an industry expert.
The term, mainly used for a unit that is available immediately upon handover, began to be used more widely since 2018 due to prices falling in the secondary market which made the market more appealing, especially to an end user, stated Property Finder, a leading UAE-based real estate portal.
According to trends from Property Finder listing data, VOT is appealing to end users as they would want to move into the property they purchase and not have the hassle of existing tenants with 12 months notice to vacate.
"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," remarked Lynnette Abad, the director, research and data for Property Finder Group.
"This trend prompted end-users to shift their sights from the off-plan market to a less riskier secondary market. This coupled with the addition of 28,890 new units completed in 2018 has made the secondary market that much more interesting," he added.
Secondary sales transfers increased by 12 per cent in 2018 compared to 2017 while off-plan sales saw a decline of 27.7 per cent in 2018 compared to 2017.
Overall, the top transacted areas for off-plan sales were Mohammed bin Rashid City (+30 per cent increase), Business Bay (+6 per cent), Jumeirah Village Circle (-30 per cent drop), International City (+530 per cent) and Downtown Dubai (-45 per cent), percentage change in 2018 sales transactions compared to 2017 sales transactions.
The top transacted areas for secondary sales for apartments were Dubai Marina (-11.8 per cent), International City (-8.9 per cent), Dubai Sports City (+15.9 per cent), Jumeirah Village Circle (+6.3 per cent) and the Palm Jumeirah (+19.6 per cent), percentage change in 2018 sales transactions compared to 2017 sales transactions.
The top transacted areas for secondary sales for villas/townhouses were Emirates Living (+6.4 per cent), Arabian Ranches (+7 per cent), Mudon (+286 per cent), Al Furjan (+468 per cent) and Town Square (+368 per cent increase), percentage change in 2018 sales transactions compared to 2017 sales transactions.
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.-TradeArabia News Service