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For several consecutive months Dubai homeowners haven’t heard good news of the housing prices growth in Dubai, but in May the situation finally changed and prices began to rise, though yet at a quite modest pace. However, property prices rocketing up isn’t and shouldn’t be expected, Reidin experts emphasize, for it could bring destabilization to the market again.
According to Reidin Dubai Residential Property Sales Price Index, all residential property rose in price by 2.5 points in May, which in percentage count is 0.97 per cent of price increase in May. Annual figures are still on the negative territory: - 5.3 per cent compared to May last year, but on the whole the dynamics is positive, Reidin noted in its report.
If speaking of property market sectors alone, apartment sales went up by 1.05 per cent in May, and villa sales increased by 0.63 per cent the same month.
But against the background of past decline in property prices, and in view of the unexpected consequences after Brexit, Dubai's mortgage lenders have become significantly more generous as for housing loans, which had immediately had its effect on mortgage sale transactions increase. AED 2.5 billion of real estate mortgage contracts were signed off in April for apartments in Dubai, and in May this sum increased to AED 3.8 billion. Such deals usually involve ready mid-market property units and off-plan housing on its latest stages of completion.
Average mortgage lending rates in Dubai are about 2.99 per cent for residential property and 5 per cent for commercial unit sales. A further increase in number of housing deals using mortgages is expected in the second half of the year, when a large number of new properties is scheduled for completion and handover, while mortgages can be availed for final payments due to the developer. Experts also note that the increase in mortgage property sale transactions share at the market provides a reliable basis for further industry’s development.
How expatriates can get a credit for a house or apartment in Dubai, and what rates apply in this case, you can always find out from IMEX Real Estate Buyer's Guide. And if you still got questions, ask our consultants, who are always ready to help.
