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Predictable real estate
According to some of the latest news in the real estate industry, prices are down in Dubai and growing supply means more options, but tenants should be cautious. Plus ça change…
September 5, 2010 3:50 by Samuel Potter
Business as usual for the Dubai property market, as Gulf News reports that apartment prices in the emirate witnessed a slight decline in the month of July, according to real estate information company Reidin.com. Data indicates a nominal decrease of 0.85 percent on the month of June for all sales, with villa prices showing a drop off of 1.19 percent month on month. Apartments were the big loser, however, with a decrease of 2.25 percent.
It’s not all bad news for the industry, however, as July 2010 was up 1.33 percent year on year. And though prices are dropping, they have slowed considerable. This relative stability could be having an effect on activity in the sales market; Emirates 24-7 reports today that mortgage lending by UAE banks in the first half of 2010 jumped by nearly AED 18 million. Central Bank figures showed real estate mortgage loans swelled by over AED 9 billion to Dh159.8billion at the end of June from Dh150.3 billion at the end of May, bringing the total increase to Dh18.1 billion in the first half of 2010.
While owners and investors in the real estate industry cautiously try to gauge and second guess a difficult market, at least one group has found the silver lining to the property bubble’s implosion, according to Property Magazine. Tenants are relishing the current oversupply, which is expected to continue until 2012, according to the article. It means a greater selection of property at more affordable prices, which is ultimately changing the migratory patterns of UAE residents, according to the magazine.
Eventually it will be the country that benefits from this correction, ventures the article: “As and when the economy picks up momentum, a realistic rental market will only help make the UAE a destination of choice,” it says.
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