Measures introduced to help keep the Dubai property market from spiralling out of control appear to have had the desired effect, tradearabia.com reports.
Following a high profile boom and bust period, lawmakers in Dubai sought to limit mortgage allowances and double registration fees to prevent local property prices from rising at unsustainable levels over the coming years. It was hoped these measures would then keep the market much more stable and better protect householders and businesses from serious risk.
Now, just months after first being unveiled, the scheme has been deemed something of a success, with prices still rising, but at a much slower rate than they had before the 2008 crash.
Figures recorded in the Cluttons Dubai Property market update Q3 2013 show average capital gains rising by eight per cent. This makes recent figures 26 per cent lower than they were at the 2008 peak,but still 47 per cent above the bottom of the market, which was posted in Q2 2009. Year-on-year, average values have increased by 53 per cent - illustrating a strong indicator that Dubai is firmly out of the recession.
These results have been jointly attributed to investors from both the UAE and further afield, with many foreign investors still looking into the opportunities Dubai can offer, even with the new limitations having been set. Many of these, however, are largely unaffected by mortgage upheavals, with the rate of cash:loan buyers at around 3:2. Those securing lending, however, are getting loans of around 80 per cent of their property value, cpifinancial.net claims.
Author
David Howells