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Dubai, Abu Dhabi property markets expected to get stable in 2015

Dubai, Abu Dhabi property markets expected to get stable in 2015

DUBAI: The property markets in Dubai and Abu Dhabi are expected to be stable this year by construction activities in real-estate developments and infrastructure projects, reported Bayut.com.

The recovery in real-estate prices, a bounce in bank financing for construction and the return of off-plan sales, in particular, has motivated developers to resume the projects that were on hold in both Abu Dhabi and Dubai.

Dubai Marina as the most searched-for property area for sales and rental searches in that emirate, with Al Reem Island topping the search for both categories in Abu Dhabi.

The report noted that Dubai Government’s introduction of new regulations have helped to stabilize growth and slow down further price increases. In addition, the Central Bank has imposed a 75 per cent mortgage cap for expatriates and an 80 per cent cap for Emiratis.

Despite this and an increase in transfer rates from 2 per cent to 4 per cent, Dubai continues to be a magnet for capital.

Expo 2020 is also giving investors more confidence in the country’s hospitality sector, with a further boost in tourism expected as the event approaches.

“However, there are still concerns that returning speculation, including through off-plan sales, could make Dubai head towards excessive price growth and rapid overdevelopment,” Mr Khan said.

Foreign investment is also playing an important role, with half of real-estate transactions, which total Dh113 billion, made by overseas buyers last year.