Dubai’s property values, on the decline since 2014, show signs of recovery as declines slow considerably, with some communities even recording a gain in prices, according to recent reports by Reidin-GCP on the changes in the Dubai real estate market and on the Dubai and Abu Dhabi Real Estate Price Indices.
The reports state that mid-market freehold clusters were already showing marginal prices gains, while high-end locations, which saw the sharpest decline during the last few years, show price stability or have at least managed to considerably lower the rate of decline. These locations are traditionally the ones most favored by investors.
This strengthening of property values comes along with an increase in mortgages. While in the past, the real estate market in Dubai and the other emirates has mostly been driven by cash transactions, the mortgage market now makes up for nearly half of all transactions.
Dubai’s population has witnessed a strong increase of white-collar employees, the most likely candidates for homeownership.