In Dubai real estate market, the way transactions have been happening during last four years, the trends have changed a lot.
Historically speaking, most of Dubai real estate market transactions would happen on sales. Mortgage transactions would usually account for 25 percent of all the transactions throughout the year. Looking at the market reports and analysis, this situation has completely inverted now and the number mortgage transactions have increased in Dubai real estate market.
The increasing sentiment of owning a home in Dubai among the residents could be the major reason for this increased trend in the market. Whereas the investors are also trying to capitalize on mortgage facility by acquiring cash-flow properties in Dubai.
In certain housing communities of Dubai, the pattern can be easily recognized leading to more home buyers. As compared to property investors, home buyers always tend to go for bigger properties.
According to a report issued by Reidin in which sizes of recently sold units were compared between Greens and Downtown Dubai. It was quite evident that the sales of larger units increased in Downtown during last six years.
Same kind of analysis was carried out between Dubai Sports City (DSC) and Jumeirah Village Circle (JVC).
While both the communities are very much populated with studios and one bedroom units, the sale of larger units has increased in JVC. Dubai Sports City still remains a major focus for investors who want to earn good rental income from smaller units such as studios and one bedroom apartments.
The percentage of people above AED 10,000/ month is around 18 percent of entire Dubai’s population, according to Dubai Statistics Center (DSC). For many lending institutes/ banks this figure the minimum requirement to be eligible for home loan.
It is quite evident that the concept of home owner ship is increasing in Dubai real estate market and moving forward in future, more such transactions will be reported in the market.