Data provided by Allsopp & Allsopp consultancy reveal the increase in number of real estate transactions conducted in Dubai during the first two months of the year.
According to the company, home buyers’ activity rate increased by 18% compared with data for the same period last year. And month-on-month figures show that monthly growth in transactions over the last 12 months has increased, respectively, by 12%, according to Allsopp & Allsopp experts.
These data confirm the statistics presented recently by the Dubai Land Department, imexre.com has reported of last week. According to it, US$ 18 billion worth real estate transactions were closed in Dubai in just 53 days of the year.
Allsopp & Allsopp CEO, Lewis Allsopp said Dubai property market has two distinct types of buyers — investors and end-users, and while the activity of the first group is continuously analyzed, predicted and taken into account in reports, end buyers, which are often responsible for the lion's share of sales, stay unaccounted for, which leads to contradictions in statistics.
“What we’re seeing here is the evolution of a mature property market, where people are buying homes to live in after renting for a few years, then going on to sell those homes and upgrade to larger properties, creating a mature property cycle. It’s a fact people are buying homes,” Lewis Allsopp said.
As previously reported by imexre.com, Dubai authorities had taken a number of measures to cool housing market down. Registration fee was increased up to 4%, and loan-t-value ratio dropped to 65%, meaning that a buyer must have at least one-third of a property cost in cash in order to get a mortgage for an off-plan property.
“What we’re seeing now with the decrease in sale prices is the result of a regulated market acting as it should. The fact we’re seeing an increase in sale transactions is further proof of this,” Allsopp said.