Average Size Of Properties Bought In H1 Shrinks By Half In DubaiThursday, July 19, 2012
According to news, government data reveals that during first six months of 2012, average size of properties bought in Dubai has shrunk by nearly 50%. As per data of DLD (Dubai Land Department), number of Dubai property transactions increased by 24.5% to 12,521 year on year but compared to same period of last year, the value and size of properties have dropped.
As compared to first half of 2011, average size of properties bought has shrunk by 44.8% in first half of this year. The average size of properties purchased was 533 sq m in first half of previous year while it has reduced to 294 sq m during the same period of this year. Owing to financial crises, sale prices of properties also fell from AED 2.8 m to AED 21.4 m indicating a fall of 23%.
The head of sales and leasing for residential property of the UAE at Cluttons, Mario Volpi, says he believes the asking prices are smaller because buyers are mostly investing in smaller units. The inquiries for 1-2 bed properties are rising as opposed to 3-4 bed properties. The data also reveals that mortgage transactions during the same period in Dubai have fallen by 23% owing to the fact that buyers are shunning mortgages and preferring to buy with cash.
Volpi also added that since more and more banks are offering lucrative mortgage deals to tempt buyers and the region is cash rich, he expects a large growth of sector in future. The head of research and consultancy at the CBRE, Matthew Green says that he expects the residential sector of Dubai realty market to remain positive throughout the year but as compared to first two quarters, transactional volumes are expected to remain under pressure. This is because history shows markets during summer and Ramadan remain subdued.