The Dubai real estate market is showing signs of recovery for the first time since it was so seriously impacted by the global financial crises in 2008. While the recovery has been led by the hotel market, there are now signs that prices and rents are increasing again in the residential sector. To date this recovery has been focussed on the upper end of the market (particularly in the villa sector) but we expect 2013 to result in a broader based recovery.
Cash buyers remain an important component of the residential market, with Dubai’s safe haven status attracting investors from more volatile areas of the middle east as well as Africa and Central Asia. Data from the Dubai Land Department shows that Mortgages were only used by around 20% of all residential purchasers in 2012. This trend is continuing in 2013, with many developers offering their own extended payment plans to assist cash buyers.