“Prices will correct downward slightly, but the demand for property is still very strong.”
As with everything, in the UAE real estate market things are constantly evolving, and mostly for the best. The market in 2013 saw such a strong increase in prices buoyed by the EXPO 2020 result that the market in 2014 has seen a change. In some areas in 2013 prices increased by as much as 30% on the sales side and there was a very strong rise in rental prices also.
With the introduction of the mortgage cap limiting the loan to value available to nance buyers, and the increase in the transfer fees along with the strong price increase in 2013, it seems that 2014 will be a period of consolidation. With the resurgence of the o plan market also taking away a proportion of the buyers for the ready property market people now have more opportunities to purchase properties that are cheaper on a price per sqft basis but may not be ready for 12 to 24 months.
To try and predict what will happen in the next months is always di cult, but by looking at the facts of what is selling and not just asking prices, also considering what prices the banks are valuing properties and taking into consideration the government in uences on the market mortgage cap and transfer fees) it seems that the stand o between buyers, sellers, tenants and landlords in what buyers and tenants are prepared to pay and