Property market returning to normalcy
Most industry participants and analysts yesterday agreed with an HSBC research report that said the gloom and doom in Dubai's real estate sector has ended
"Distressed stock is gradually clearing, with further signs of consolidation as volumes continue to pick up. Also, more recently, mortgage providers have moved to ease their requirements, raising loan-to-value (LTV) and relaxing credit norms, which we view as a further sign of some normalcy returning to the market," HSBC said.
According to the bank, the May transaction survey suggests that the market is starting to bottom out, with agreed prices up four per cent and five per cent month-on-month in April and May, respectively.
Apartment prices (which account for 85 per cent of transactions) are up nine per cent in May, villa prices continue to come under pressure, down 11 per cent month-on-month. Villa agreed prices have now fallen 49 per cent since a September 2008 peak, compared to only 16 per cent for apartments, HSBC said.
