Banks offering rates as low as 3.5% for Dubai homes
Residential properties sales in Dubai have jumped in the first two months of the years on back of better mortgage deals, says a new report.
Banks are offering mortgage rates as low as 3.5 per cent, slashing arrangement fees and speeding up the processing of applications, Cluttons, a real estate consultancy, said in a first-quarter report.
"Residential sale transactions saw a natural increase in January and February, particularly in the villa market, aided by the confidence given by the resurfacing of the local mortgage market," it said.
"Mortgage lenders, who continue to fight for market share, offering more attractive rates to credit-worthy clients purchasing particular stock, have aided recent activity."
Prices for high-end villas rose to Dh1,150 per square foot on average in March compared with Dh1,080 square feet in October 2011. The Lakes, The Meadows and The Springs were among the best-performing villa developments. However, prices in Jumeirah Village and Green Community have fallen, the report said.
The resilience of the higher end in the apartment segment has remained strong over the past five months and has experienced positive growth since Q3 2011 in locations such as Downtown Dubai (5.3 per cent), The Greens (4.8 per cent), The Views (5.2 per cent) and Dubai Marina (1.35 per cent).
Values of apartments in less desirable locations have continued to be eroded by oversupply and poor property management. Areas such as Discovery Gardens and International City have fallen by 7.8 per cent and 5.6 per cent, respectively from Q3 2011.
© Emirates 24|7 2012
