As the Dubai property market heads towards the final quarter of 2012, market conditions are well positioned for strong and continued growth into the new year and beyond.
Rental prices in premium areas of Dubai, such as Dubai Marina and the Burj Area, are experiencing increases as much as 10 – 15% a year.
Supply in the market is also reducing as the Arab Spring, high oil prices and a recovery in the economy has resulted in more people moving to the UAE.
At the time of writing that number has dropped to 61,046 residential units for either purchase or rent. While this is not a scientific test of the market, it is a fair indicator that demand is growing across the Dubai property market.
Admittedly, more projects are coming online in the coming months as construction continues at pace, but the government aims to create 950,000 new jobs by 2020, attracting more people to the country and filling the new apartments.
In addition to the supply increasing, mortgages rates in the UAE are at their lowest for many years. The banks are putting liquidity back into the market and you can find a mortgage at 3.99% today – much below the 6.75% and above back in 2008.
The six-month Eibor (Emirates Interbank Offer Rate) has also fallen from 1.714 per cent at the start of the year to 1.485 per cent at the end of August, leading many to think that mortgage rates could fall even further by the end of the year.
Market conditions are well placed for a continued recovery in the Dubai property market and I for one will be spending the weekend scouring through the property sections and dubizzle.com to keep hunting out that dream place in the sun!