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19.08.2014
The slowing down of property growth in the second quarter can be traced to tighter regulations (higher transfer fees and mortgage caps), according to real estate firm Knight Frank. Growth rate in the property sector has been slowing down this quarter and now, real estate firm Knight Frank says this can be attributed to higher transfer fees and mortgage caps.
According to Khawar Khan from the international real estate consultancy, new rules have impacted Dubai’s luxury homes market to a much greater degree. Prices increased by just 6.3% year on year in the second quarter of 2014 compared with 24% in the mainstream property market.
"Established, mainstream locations such as Dubai Marina remain very popular among western expats and continue to see healthy demand and thus price growth. That in turn has led some investors to look elsewhere for value, including newer developments in areas such as Jumeriah Village, Dubai Sports City and Dubai Silicon Oasis where prices are rising off a relatively low base," said Khan.
‘Therefore with demand for residential property remaining strong in both newer, as well as more established, mainstream locations in Dubai, prices in this segment continue to post strong gains,’ he explained.
He also pointed out that the new mortgage rules implemented by the UAE Central Bank are stricter for those buying residential property worth over AED5 million. "Thus, while the new mortgage caps have hit the residential market as a whole, they have had a lesser impact on the mainstream segment," added Khan.
According to Khawar Khan from the international real estate consultancy, new rules have impacted Dubai’s luxury homes market to a much greater degree. Prices increased by just 6.3% year on year in the second quarter of 2014 compared with 24% in the mainstream property market.
"Established, mainstream locations such as Dubai Marina remain very popular among western expats and continue to see healthy demand and thus price growth. That in turn has led some investors to look elsewhere for value, including newer developments in areas such as Jumeriah Village, Dubai Sports City and Dubai Silicon Oasis where prices are rising off a relatively low base," said Khan.
‘Therefore with demand for residential property remaining strong in both newer, as well as more established, mainstream locations in Dubai, prices in this segment continue to post strong gains,’ he explained.
He also pointed out that the new mortgage rules implemented by the UAE Central Bank are stricter for those buying residential property worth over AED5 million. "Thus, while the new mortgage caps have hit the residential market as a whole, they have had a lesser impact on the mainstream segment," added Khan.
