The real estate sector in the U.A.E has shown a positive uptrend in growth on the strong market conditions in Dubai and Abu Dhabi.
In a recent report released by TASWEEK Real Estate Marketing and Development, a major real estate firm, it was found that the rising confidence in the markets of Dubai and the strong foundation fundamentals in the markets of Abu Dhabi have led the growth in the real estate sector of U.A.E.
The report also asserted that the real estate market conditions have been experiencing a strong growth rate since the start of 2013.
"The UAE's real estate sector is enjoying a steady uptrend in the first few months of (the) 2013 market characterized by more consistency and consolidation within the primary markets of Dubai and Abu Dhabi," Masood Al Awar, chief executive of TASWEEK Real Estate Marketing and Development, said in the report.
Home rents in Dubai went up 7 to 10 percent in the past three months. Flexible schemes of payment have made the city one of the most popular living destinations. Known for its skyscrapers and luxurious hotels, the influx of tourists and major companies has given the market a push as well. Experts have predicted that the rental rates may increase by 10 to 17 percent in 2013.
Currently, Dubai has many ongoing construction projects. Some of the major ones include The Blue Waters Island project and a serviced apartment project worth $980 million.
Though rents slid 5 to 12 percent in Abu Dhabi, the increasing number of collaborations and partnerships between major real estate developers are expected to augment the future growth prospect of the region. Abu Dhabi also has major construction projects in the anvil like the mini market and community center in the Mediterranean Village, 'The District' - a retail center on Saadiyat Island and a mixed use center in Sowwah Central, Al Maryah Island.
The report also stated that the laws regarding property transactions and mortgage rates could help sustain the growth. Recently, the central bank of U.A.E agreed to set caps on mortgages at 75 percent of the property's value for foreigners and 80 percent for local residents. More mortgage regulations are to be discussed during the latter half of the year.
Al Awar has advised all the major industry players to anticipate more growth and monitor the movements closely.
"This year will help build on the transitional nature of 2012 to make the UAE property markets more robust and sustainable," he added.
