A recent poll by Core Savills, a global broker, has reported a definite surge in the interest level of existing tenants in Dubai.
Despite the claims of property agents that Dubai residents are not interested in buying property in the city anymore, the poll voices an altogether different opinion.
The poll surveyed 800 tenants/ users to analyze the underlying monetary and macroeconomic factors that are driving real estate decision making in Dubai.
According to the survey, 51% of the respondents have plans to buy property in Dubai soon. Around 71% of the people backed banks easing lending, even though it can mean the return of speculative buyers which might result in higher rent prices and more purchases.
Core Savills – a global broker
Core Savills is one of UAE’s largest property services firms with 700 offices globally. The company provides services in more than 60 countries and specializes in sales and leasing of commercial property, corporate and investment services, property management, commercial retail, offices and industrial, sales and rental of residential property, international sales and consultancy.
According to the CEO of Core Savills, David Godchaux, more residents will purchase property in Dubai if the minimum mortgage deposit is lowered. The deposit currently stands at 40%, as stipulated by the central bank.
Godchaux further commented that a significant segment of tenants is not buying property in Dubai because of the current regulations. He said, “This reinstates the fact that there is a strong underlying demand of existing tenants who are considering a move to ownership if the laws are relaxed.”
Findings of the poll
Approximately, 16% of the respondents were of the view that Dubailand was the least likely area to retain its value in the long run. However, Dubai Marina was named by 18% of the people as the most likely area to see long-term growth.
The survey also found out that the majority of the people believed Dubai Water Canal would shape the future of the city. While 44% of the respondents said Dubai Water Canal was the most exciting project in Dubai, 20% felt Dubai South, located near Expo site, was the most interesting project.
In spite of much debate about the effects of Brexit, 56% of the responses indicated Brexit would have a neutral effect on Dubai’s real estate, 24% agreed that it would have a positive impact while 21% thought it would leave a negative impression. Around 32% of the respondents still see the UK as the safest place for real estate investments after Dubai.
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