Long-term Dubai investors still profits from property investments
Investors who purchased property in Dubai, less than two years ago, still stand to gain profit, despite the low prices at present, the owner of Dubai-based brokerage firm said.
The CEO of Leo Sterling, Laura Martorano, said that people who are suffering the most are those who purchased properties last year on mortgage, as the prices of properties then were very high and mortgage rates were also high. But, people who purchased before 2007 also have not lost. Even if they sell, they still get to make a profit.
The property prices in Dubai have not been affected by the recent Dubai World restructuring talks, Martorano agreed, and added that prices in the ready market are not liable for a change, as there is competition.
In a ready market, about 60 percent of purchases are cash purchases. Therefore, people may not necessarily be so desperate as opposed to 40 percent, who have bank loans and mortgages, she added.
Real estate transactions in Dubai have fallen in November, compared to figures posed in the previous month, official data said. The number of land sales fell by 11 percent from 208 in October, to 186 in November, while the value of transaction deals fell by 47 percent from Dh.1.84bn to Dh.970mn during the same period.
The Dubai Land Department data showed the villa sales have grown 24 percent from 88 to 109, but there was a decline by 41 percent in value from Dh.290mn in October to Dh.170mn in November.
The month of October also showed positive indicators, with average monthly market index posting 11.25 percent hike, while trade as issued Dubai certificates of origin, increased by 10 percent in volume and 9 percent in value.
Despite the negative economic indicators, Martorano is confident that Dubai will continue to hold a bright future.
