An increase in lending from banks in Dubai has contributed to a recovery in the emirate's real estate market. Transactions climbed in both January and February on the back of greater access to finance for investments, the latest report from Cluttons shows.
The consultancy noted that lenders such as Barclays, Standard Chartered and Gulf Finance continue to fight for market share and are offering very competitive terms to a wide range of credit-worthy clients.
Other positive activity in the property sector includes the resumption of a number of projects which were put on hold following the market crash. This, Cluttons claims, is a result of cheaper building costs which are allowing developers to complete construction.
However, while the long-term outlook for the once-booming Dubai market is looking more positive, the report indicates that rental values are coming under increasing pressure from tenants who continue to take advantage of the over supplied marketplace.
Cluttons said that apartment rental figures have fallen by between eight and ten per cent compared with the previous quarter.