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18.12.2014
Almost a year after the introduction of the federal mortgage cap, the residential market appears to have finally succumbed to the stringent deposit requirements imposed on buyers. Villa prices in Dubai will continue to soften into next year with the cap on mortgage lending to home buyers the biggest factor behind the slowdown, according to research from Cluttons.
“Almost a year after the introduction of the federal mortgage cap, the residential market appears to have finally succumbed to the stringent deposit requirements imposed on buyers,” the broker said in its Dubai Winter 2014 Residential Market Outlook.
According to The National newspaper, villa values went down 1.2% in the third quarter as compared to the previous three months. The number of villa transactions was 58% than a year ago; apartment activity was down 40%.
In August, property brokers warned that villa prices in Dubai could be starting to fall as new mortgage caps subdued the market for multimillion dirham homes and as hundreds of new family houses were built across the city.
“Almost a year after the introduction of the federal mortgage cap, the residential market appears to have finally succumbed to the stringent deposit requirements imposed on buyers,” the broker said in its Dubai Winter 2014 Residential Market Outlook.
According to The National newspaper, villa values went down 1.2% in the third quarter as compared to the previous three months. The number of villa transactions was 58% than a year ago; apartment activity was down 40%.
In August, property brokers warned that villa prices in Dubai could be starting to fall as new mortgage caps subdued the market for multimillion dirham homes and as hundreds of new family houses were built across the city.
