Categorized | International

Dubai Housing Market Shows Signs of Stability

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After standing tall as one of the most popular housing markets in the world, Dubai’s residential real estate market has been one of the hardest hit areas across the globe. For years, the market was plagued with uncertainty and confusion in ownership, both of which led to disastrous results.

 

However, the first few months of 2012 have shown that Dubai’s residential real estate market may be heading down the road of recovery. Home sales increased in January and February for the first time in years in Dubai. Economists have already considered some areas as being stabilized markets, which is great news for the city.

 

One of the reasons for recovery, particularly in the villa market in Dubai, is that consumer confidence is higher than it has been in years. As the local mortgage market continues to regain strength, more potential homebuyers are looking to potentially buy a new home.

 

Mortgage rates offered by local lenders are now being offered as low as three and a half percent. Many lenders are also cutting back on fees to entice potential homeowners to buy their first property. As such, many have jumped at the opportunity, and are seeking homes in the more desirable neighborhoods.

 

Both homes and apartments in prime areas of Dubai are expected to continue their newfound growth, and thus, perform well on a grand scale. On the other hand, homes and apartments in the less than desirable end of Dubai have seen continuous declines in value, as those areas have been plagued by oversupply and minimal interest.

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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