Supply is well matched with the demand for Dubai properties investments

Property research shows that Dubai property is cheaper in global terms but set to increase in relation to property values and rental prices

Dubai property could well be compared to Singapore in terms of rental prices but in contrast Singapore purchase prices are a lot higher. The Dubai property market has yet to adjust to the global interest rates and therefore the rental prices, so far, have remained static. This may be due to the underdeveloped mortgage market, with most Dubai property investors still purchasing with cash.

Although it may be a little early to draw some definitive conclusions, however property news indicates an adjustment is almost certain. Dubai banks are set to develop the mortgage lending facilities to similar world levels and with the expansion of localised credit could result in raised property prices.

The current rental yield for Dubai property is relatively high by global standards, at 7% to 10% and property reports are also leaning towards a hike in property prices. The Dubai Statistic Department property report stated that an extra 30,000 to 35,000 units of accommodation are required for the increased population and demand in Dubai. The Dubai property investment market is showing no signs of cooling down especially with rentals and the expenses associated with rental properties. The other driving force in the market is a marked increase in the number and frequency of mid-end home buyers are entering into the market.

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