Average size of properties sold in Dubai shrank by half
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The average size of properties bought in Dubai during the first half of 2012 shrunk by nearly half, according to government data
The average size of properties bought in Dubai during the first half of 2012 shrank by nearly half, according to government data.
Dubai Land Department figures showed the number of real estate transactions in the first six months of 2012 rose 24.5 percent year-on-year to 12,521.
However, the size and value of properties dropped compared to the same period last year.
The ongoing financial crisis also meant average sales prices fell 23 percent from AED2.82m (US$768,118) to AED2.14m (US$583,900).
“I believe that this is due to buyers investing in smaller units, so the asking prices are going to be obviously smaller. We are seeing evidence of this in the level of enquiries [going up] for 1-2 beds as opposed to 3-4 beds,” said Mario Volpi, head of sales and leasing for UAE residential at Cluttons real estate agency.
Data showed the number of mortgage transactions fell by 23 percent to 2,903 during the same period, showing over three quarters of buyers are shunning lenders and opting to buy with cash.
“This region has always been cash rich, so I do see a large growth in the future in terms of activity as more and more banks produce attractive deals to entice buyers to take out mortgages,” Volpi said.
Matthew Green, head of research & consultancy at CBRE, said “the residential transaction market is likely to maintain its positive footing during the course of the year”.
“However, transaction volumes are expected to be more constrained as compared to the first two quarters, due to the slower pace of the summer and festive period of Ramadan wherein historically the markets remain more subdued,” he added.
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