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The sentiments are turning positive in Dubai’s property market — 51 per cent of the city’s residents would consider buying a home in the future, according to a survey by Core UAE, the consultancy.
Here's yet another key to those looking at the property market’s future: 62 per cent of those polled will buy a home for their own use rather than investment purposes.
And their favoured location is Dubai Marina, while the Downtown came in second.
Both accounted for more than a quarter of the responses, “clearly positioning their dominance on desirability despite or perhaps because of their current drop in sales prices,” the report states.
For villas, the mid-tier locations of The Springs, The Meadows and The Lakes were the most sought after.
For the Core Savills survey, more than 800 users/tenants’ opinions were reviewed, and 50 per cent were of the opinion that Dubai’s residential market would recover over the next 12 months.
This sentiment feeds “into what may be a self-fulfilling prophecy as we expect this effect to drive price appreciation resulting in a positive sentiment (and) attracting more buyers,” said David Godchaux, CEO at the consultancy.
As high as 58 per cent of those with an existing property in Dubai said they are likely to engage in a transaction some time over the next 12 months. Among them, 46 per cent are “inclined” to expand their existing residential portfolio.
“Fifty-nine of our overall participants perceived owning a property in Dubai to be advantageous despite the current market backdrop whilst a robust 71 per cent of the owners holding properties in Dubai agreed to this statement reflecting a sense of confidence in the Dubai’s real estate market,” the report notes.
But there are concerns too, and the main one related to access to mortgage funds. This is interesting because mortgage disbursals have remained consistent in Dubai through recent quarters.
But in the Core Savills survey, one in four respondents mentioned difficulty in securing finance as the main deterrent to buying a property.
“An astounding 71 per cent held the opinion that mortgage regulations should be relaxed even when factoring in the detrimental effect of a possible return of speculative
buyers,” said the report. “There exists a strong underlying demand of tenants who would consider transitioning to ownership if the mortgage regulations are relaxed, further highlighting the affordability issues faced by the mainstream market segment.”
Source: Manoj Nair, Associate Editor, gulfnews.com