UAE housing upsurge predicted
The United Arab Emirates housing market is picking up, according to a respected report
Global chartered surveyors Cluttons said this week that the residential sales market in the country had made a positive start to 2012.
Confidence is returning to the Emirates after a period of uncertainty following the global economic crisis. The Abu Dhabi government approved a huge raft of construction projects recently, many of which had been on hold for a while.
Cluttons reported an upward trend of local buyers looking to invest in a property market, saying speculation had disappeared, as had a glut of distressed sellers.
‘Proactive sellers are now looking to trade up as property prices have fallen, in some cases by as much as 60%. As a result, more serious buyers are once again searching for those exemplary properties,’ the company said in a statement.
It added that almost all the financers that withdrew from the market in 2008 have returned.
The monthly volume of mortgage loans in the UAE has soared from AED 28,280,000 (£4.9m) in December 2006 to AED 160,130,000 in September 2011.
‘Since the downturn of 2008, Cluttons has seen a return to property financing by the banks. At that time, nearly 70% of lenders withdrew from this type of finance. Now 95 per cent of those lenders have returned to the market.’