Dubai Property Market Stabilising According To New Report

 

A report out today from Standard Chartered has stated that the Dubai property market is gradually stabilising due to increasing access to mortgages in the Emirate. The news is the latest in a series of announcements which suggest that the worst of the economic downturn may be over in the emirate.

 

"The end of the freefall is encouraging," said Philippe Dauba-Pantanacce, a Dubai-based senior economist at Standard Chartered, in a report yesterday. "The first signs of stabilisation in Dubai's real estate sector have appeared, taking observers by surprise since further declines were expected. Some caution is warranted, as there are still question marks surrounding population flows," he said.

 

Key to this process of stabilisation has been the mortgage providers gradually easing their requirements, which has led to higher low to value ratios in the past couple of months. This easing of requirements has led to increased activity in the Dubai property market, which saw increases of four percent in April and five percent in May according to HSBC figures. Figures were even more positive in the apartments sector, which saw rises of approximately nine percent in May.