How is the UAE real estate market today different from the pre-2008 years

  • 12OCT
    Dubai Property Prices in Real time
Due to the change in the global economic climate the UAE real estate market had a significant downward turn from 2009. While some of the high end products have recovered and equal their peak rates the market in general is an average of 30% under its former glory years.
The Government have taken measures to safeguard the real estate market which included an increase on the Land Registration charges from 2 - 4% in Oct 2013. In addition, Developers have restricted the resale of property during phases of construction. It is currently at 40% down payment before selling but this could increase to 50% and will further reduce the flip investors.  The longevity and stability of the real estate market is a continued mission. The investor profile has changed with many more investing for medium and long term periods. Due to this change there is less supply re-entering the market and further prevention in potential distress sales due to default on payments.
Many of the Projects that were in various stages of development in previous years have now been completed and therefore a greater supply of ready freehold properties available in the UAE. The greater selection of properties to invest in has opened the market to more types of investors.  There is more knowledge, experience and insight into developing and meeting the investor demands. As the confidence is strong and demand continues there are even more new areas being introduced and developed with the success of the off plan market.  
The Financial Institutes and Banks have made vast improvements on their lending options and now offer bespoke mortgage solutions making the product more competitive and suited to the lender. Interest rates have gone from 8% to under 4.5% over the last few years.  With more experienced employees and valuers you can now enjoy a quicker processing time and more thorough valuation and assessment to minimize exposure. Although the Loan to Value has reduced and now you may need a 25% deposit this further reduces potential liability as it allows room for the market to fluctuate and keep you in positive equity thus safe guarding the investor against any unforeseen changes in the future market.
12th October 2014