Dubai's property market 'grows from strength to strength'

14/06/2012 - Dubai Property News Posted by Bob Brunskill
Dubai's property market 'grows from strength to strength'

The market for buying in Dubai appears to be moving in an continually positive direction, with prices of property in the UAE region registering a quarterly improvement at the beginning of the year.This increase has been supported by a return of investor confidence and a gradual rise in economic activity thanks to prospering trade and soaring tourism, as the city remains a much sought-after destination for every kind of traveller, the National reports.Data compiled by the National Bank of Abu Dhabi revealed that typical residential units in the emirate were around 3.7 per cent higher in the first three months of 2012, compared to the previous quarter.Average property prices are good, but remain 64 per cent lower than the peak of average values in the metropolis back in September 2008.It is villa values that are appreciating the most out of all the various categories of residence on the market, with strong demand for these spacious, luxurious abodes driving their cost up.Furthermore, rental rates for these dwellings are rising by five per cent on a sequential basis, with two-bedroom villas in upmarket districts including the Palm Jumeirah, Emirates Living and Arabian Ranches proving the most popular.Apartment rents and capital values are up in selected regions, while vacancy rates are still high.Mortgage transactions in general are on the rise, with the Dubai Land Department reporting that 2011's figure rose by 33.5 per cent from AED 57.4 billion (£10 billion) in 2010, which points to a recovery in property financing and a return to healthy financial activity in the marketplace.A recent decision made by leading UAE banks could stimulate the sector further.Supported by a low-interest-rate climate, mortgage providers are now offering attractive property loan rates and payment terms to those buying in Dubai, which has led to a recent surge in sales.Since the price declines began in 2008, demand for property is now in the hands of the owner-occupiers rather than speculators, which is driving the need for mortgages.