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Dubai: Despite a slowdown in the Dubai’s real estate sector, property investors remain positive about the market, with the majority of them saying they expect sales and rental prices to increase over the next several months.
In a survey conducted by market research company YouGov, 58 per cent of home buyers said they anticipate sales and rental increases over the next year.
More than half of the buyers (54 per cent) said they are also optimistic about the “continuing growth” of the property market in Dubai.
Buyers seeking to invest in Dubai’s real estate sector are now looking for smaller, affordable housing units, rather than luxury or high-end properties.
The survey, conducted for Informa, the organisers of Cityscape Global, found that studios and one-bedroom apartments are particularly gaining more buyer attention.
YouGov’s survey also showed that when it comes to choosing properties, investors pay close attention to the location of a flat or villa. The closer the property is to transportation links, the more investors are willing to pay.
Among the 861 respondents polled for the study, 56 per cent said that properties close to transportation facilities are most preferred, followed by those near grocery stores (44 per cent), retail shopping malls (41 per cent) and mosques (37 per cent).
Lara Al Barazi, YouGov’s head of real estate research, said that the results of their study highlight the positive sentiment of the investors. “Investors, potential home buyers, as well as real estate professionals, are expecting growth to continue in the Dubai real estate market in the coming year,” Al Barazi said.
“The most positive news is the extent of trust investors place in the residential property market, which reveals the high potential this sector has and the importance of understanding what appeals most among prospective buyers.”
Kash Kanjwani, director at Sky View Real Estate Brokers, noted that more investors are now looking to invest in affordable housing in Dubai.
“For any mature market there has to be balance between luxury properties and affordable properties. Previously, developers had tried to launch affordable properties, however, due to speculators and high demand, some of these properties appreciated at such high rate that they reached the same price point as luxury properties.”
"With new regulations in place, the speculation of properties has been controlled and because mortgage LTV (loan-to-value ratio) has been limited at 50 per cent for off plan projects, most developers are offering easy payment plans and the right pricing. Demand for affordable housing is now greater than ever.”
Source: Cleofe Maceda, Senior Web Reporter, gulfnews.com