Renters Looking to Buy in Dubai as Off-Plan Sales Dominate Property Market
Off-plan sales have increased in Dubai, with property prices in some areas falling to 2013 lows, attracting new buyers who would otherwise have been priced out. A mortgage cap brought in by the Central Bank, meaning that expats are obliged to pay at least a 25% deposit and 7% transaction costs, could be the reason for the recent market changes in Dubai, some experts believe. Lukman Haile, chief commercial officer at Propertyfinder Group, said: “Many commentators have argued that this cap has achieved specifically what it was intended to achieve – a cooling in prices, and diversion away from the secondary market toward the primary market.” He added that because of the increased number of project launches, there’s been “aggressive low deposit and post handover payment schemes” which add an incentive to buyers in the falling market and lead to more off-plan transactions. According to Propertyfinder Group’s Trends report, the price drops in Dubai have been gradual over the p