Dubai Residential Property Market Sees Continuing Growth And Stability
News Posted On: 03 April 2012
Dubai's residential property market is seeing continuing growth and stability, as residential sales transactions increased in January and February. According to Cluttons this was due to competition among mortgage lenders to offer the best packages. Cluttons' Quarter One market report sees the overall trend in Dubai as being positive, and certain locations have even seen growth during the past six months.
In particular residential sales of villas increased in January and February, which is being attributed to rising confidence in the market. Sales are also being affected by mortgage lenders, who are offering far more attractive rates to clients with good credit ratings that are purchasing particular stock. Mortgage rates are currently as low as 3.5%, on top of that banks are accelerating the approval process and cutting arrangement fees in a bid to attract borrowers.
Villa developments such as The Lakes, and The Springs have performed particularly well with gains of 7.2% and 6.4% respectively since the third quarter of 2011. In comparison less desirable developments such as Green Community and Jumierah Village have seen values drop by 2.5% during the same period. Apartments in less desirable areas have also performed badly, as Discovery Gardens and International City have seen values fall by 7.8% and 5.6% respectively during this period.
However the higher end of the market has performed much more strongly and Downtown Dubai has seen growth of 5.3%, while The Greens has seen growth of 4.8%, and values of The Views have increased by 5.2%.
Cluttons is predicting the remainder of this year will be very similar to the fourth quarter of 2011 and the first quarter of this year, solidifying a market based on demand rather than investor sentiment.
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Written by Les Calvert
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