“Prices will cor­rect down­ward slightly, but the de­mand for property is still very strong.”

Good (UAE) - - THE GOOD LIFE -

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

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