Dubai's expats are increasingly moving from renting a property to owning their own home, a new report from a real estate consultant shows.
In a change which it says amounts to a "paradigm shift" in Dubai real estate, Unitas Consultancy says the market is increasingly dominated by end users - those who buy a property with the intention of living in it.
A report released yesterday by the firm flags up that, across a clutch of popular residential areas including Dubai Marina, Jumeirah Lakes Towers (JLT), The Greens, Arabian Ranches, The Springs and The Meadows, owner-occupied home ownership now accounts for 15 per cent - or nearly one-in-six - transactions.
The firm says that figure has doubled in the last four years and signals Dubai's change from "an investor dominated market to an end-user owner occupied society".
The report highlights figures showing that in popular communities The Springs and The Meadows, 28 per cent of homes are occupied by mortgage-holders.
Similarly, about 25 per cent of residents in Arabian Ranches have a mortgage.
Home ownership is lower in JLT and Dubai Marina - at 11 per cent of residences. But the firm says that the fact that home ownership in The Greens - which is mainly apartments - has risen to 23 per cent of units shows it's not only wealthy villa-buyers driving a surge in ownership.
Buyers increasingly have a preference for what the firm classifies as Government Sponsored Developments' (GSDs) over those projects built by private-sector developers - with between 20 and 28 per cent of units in projects by GSDs owned by a mortgage-holder.
Unitas also highlights what it calls "the renaissance of JLT" - noting that the development has closed the gap with neighbouring Dubai Marina when it comes to prices, and is now considered "the preferred destination for the middle and upper-middle class".
But while one-bedroom apartments are the most popular purchases in JLT, in Dubai Marina four-bedroom apartments are being snapped up fastest - with some dubbed "trophy purchases".
Unitas says that a successful bid for World Expo 2020 by Dubai would also make communities along "the Emirates Road corridor" more attractive. The UAE is expected to unveil a cap on mortgage lending by the end of this year.
© 7Days 2013
