Maps    |   Hotels    |   Tours    |   Jobs    |   Real Estate    |   Citylife    |   Entertainment    |   Restaurants    |   Education    |   Shopping    |   Contests 
  Home  |  Contact Us  
       Sign In / Register  
Dubai City Map
Dubai Metro
Dubai Videos
Dubai News
Press Releases
What's On
Latest Events
Annual Festivals
Visa Regulation
Dubai Airport
Travel Tips
Explore Dubai
Shoppers Paradise
Dubai Gold Souq
Getting Around
Emergency Numbers
Embassies & Consulates
Government Services
Shopping Malls
Parks / Beaches
Clubs / Organisations
Business Information
Relocating Help
Jobs Search
Property Finder
Medical Tourism
Dubai Healthcare

News Detail

Dubai Tour Booking
Dubai Visa

Application Download

Special Promotions
Dubai Hotel Booking at
Cheapest Rates
Book Dubai
Furnished Apartments
Dubai Tours & Safaris
at Best Rates

Dubai Hotel, Lodging & Accommodation

Dubai Apartment Rates & Booking

Dubai Desert Safari Tours

Dubai Dhow Cruise Dinner

Dubai City Sightseeing Tour

Hatta Trek Tours & Mountain Trekking

Helicopter City Tour Over Dubai

Fujairah & East Coast Tour

Aquaventure Tour at Dubai Atlantis

Latest News & Happenings in Dubai
Dubai Health & Medical Tourism Information
Dubai Real Estate & Freehold Properties
 Nation   Region   Sport   World   Technology   Business   Tabloid   Notes 
Powered by, one of the most popular daily English language newspapers in the United Arab Emirates.

Greater liquidity needed to spur sales

10/06/2009 11:30 PM | By Saifur Rahman, Business Editor

Dubai: The UAE's property market could take off faster than predicted if among others, banks and mortgage lenders open the tap, industry officials say.

The market has been eagerly awaiting the merger of Amlak and Tamweel - the two biggest mortgage lenders - who have stopped offering new mortgages since the merger move late last year and which is pending the government's final approval.

Developers and real estate analysts believe the property market could take off faster if funds were channelled through mortgage lenders, especially at the backdrop of the 50 per cent decline in property prices, making them attractive to end-users.

Many end-users who have either been sidelined by speculators and brokers or been shying away from the market for a long time, have suddenly become the 'king' and prime target of developers and brokers.

"With speculative buyers almost entirely out of the market, demand for residential property is currently being driven by end-users and long-term investors. Banks and a select number of mortgage lenders have eased financing restrictions, yet the majority of potential buyers are still unable to purchase property," Jones Lang LaSalle said in its latest report on Dubai released yesterday.

"Cash buyers are able to find good deals since they can negotiate prices down considerably. Most sales are taking place for completed units as demand for off-plan property is close to nil, given the uncertainty surrounding project cancellations."

Thousands of housing units are going to be delivered in the next few months, with very few new takers.

Dubai Properties Group (DPG) yesterday said it has commenced the handover of 2,387 high-end units at the residential and commercial towers of the Executive Towers development, located in Business Bay. Dubai Silicon Oasis is delivering 400 villas, and Deyaar is handing over some projects this year.

Developers, however, remain optimistic.

"This market is not different from others. We see liquidity returning to the market as it matures with more serious buyers entering the real estate sector," Khalid Al Malek, DPG chief executive, told Gulf News.

"Mortgage remains an issue and we are addressing that by tying up with leading financial institutions. to support our customers. However, as a group, we do not intend to launch our own mortgage arm."

Banks were lending money when people needed mortgages less, property developers and analysts have been saying. They have now become stingier when most end-users are looking for mortgages as supplies are abundant.

"Banks should increase their mortgage finance capabilities as the market is maturing with more serious buyers entering the market," Dr Wan Sulaiman, adviser-in-charge for Tanmiyat, a property developer, told Gulf News. "People will have to think like end-users in the market, and not like speculators."

However, despite market limitations, mortgages grew last year. Total credit extended to the UAE real estate sector has been growing at a double-digit rate.

"Real estate mortgage loans stood at Dh115.7 billion in the first nine months of 2008, compared to Dh58.8 billion in 2007, a growth rate of 96.6 per cent," Hamad Bu Amim, director-general of the Dubai Chamber of Commerce and Industry said.

Wazir Ali Daredia, executive director and CEO of Trident International Holdings, which is developing the 124th floor of the world's tallest residential tower Pentominium, said, "One of the key areas will be the credibility of the developers, the delivery track record and the quality of products and services. Customers are becoming mature and they will look at the developer's track record and profile before buying."

Outlook: Hamdan confident

Shaikh Hamdan Bin Mohammad Bin Rashid Al Maktoum, Crown Prince of Dubai, expressed his confidence in the UAE economy to continue to attract foreign investments and capital.

"The UAE will remain a safe haven for national and foreign investments because it is governed by strong economic rules and legislation," Shaikh Hamdan said as he inaugurated Cityscape Dubai 2009 on Monday.

He added that the national economy is strong and coherent and is based on the vision of President His Highness Shaikh Khalifa Bin Zayed Al Nahyan and His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.

Shaikh Hamdan pointed to the awareness of national companies and the private sector about the importance of conducting studies and planning, as well as of being updated on regional and global economic conditions, to face global changes.


 Back to News Page assumes no responsibility for any content from external sources.
 Nation   Region   Sport   World   Technology   Business   Tabloid   Notes 
 More News & Happenings :
 Latest Press Releases  Events & Exhibitions  News Archive
 Popular Links :
 Dubai Hotel Deals & Special Offers  Dubai Tours, Safaris & Dhow Cruises &
 Featured :
Atlantis Dubai Aquaventure Tour
Atlantis Dubai Aquaventure Tour
Dolphin Show at Dubai Dolphinarium
Dolphin Show at Dubai Dolphinarium
Entertainment Special Events Contests Restaurants
Dubai Medical Tourism & Health Tourism in Dubai
Dubai News, Press Releases, Events & Exhibitions Dubai Citylife, Restaurants, Night Clubs, Sports, Dance...
Dubai Hotel Booking / Book Dubai Furnished Apartments Dubai Desert Safari, Dubai Dhow Cruise & Dubai Tours
Latest Jobs in Dubai, Career News & Recruitment Agencies Dubai Real Estate & Freehold Properties Listing & News


Sponsored Links
Jobs in Dubai
Find the latest job listing & career news in Dubai
Banking / Finance Jobs
IT / Graphic Designers Jobs
Human Resource Jobs
Oil / Petroleum Jobs
Sales / Marketing Jobs
All UAE Jobs
Most Viewed
Dubai Videos
Google UAE Map
Dubai Landmarks
Dubai Jobs
Dubai Real Estate
Dubai Entertainment
Restaurants Clubs & Pubs
Movies Health & Fitness
Sports Dancing
Education Kids n Teens
Sale & Discounts
 © 2009 Dubai, UAE    Dubai News   |  Dubai Events   |  Dubai Map   |  Dubai Jobs   |  Book Dubai Hotels   |  Dubai Desert Safari   |  Dubai Real Estate   |  Dubai Tourism   |  Dubai City Life