Considerations in buying property for resale

It is essential to make sure transactions happens at the most opportune time 

The property resale market in Dubai is showing marginal growth as many of the new – build apartments and villas have come back to the market for resale. If the owner of a property decides to sell, it is essential to make sure the transaction happens at the most opportune time in the market. The investor might realize that holding out for improving prices is his/her best bet. There are many things to take into account when reselling properties in Dubai.

According to the Dubai Land Department (DLD), “In 2014, the total number of real estate transactions in Dubai exceeded AED 61 billion, an increase of 38 per cent compared to the previous year. It is quite conservative to estimate a doubling or trebling of residential property prices in Dubai by the year 2020. Developers are lunching several projects including luxury residential properties in line with Dubai’s strategies to become the world’s best tourism hub.”

UAE’s realty sector on a stable growth path

The growth of real estate market is perhaps one of the strong indicators of financial stability of an economy. There is an interrelationship between the real estate prices and the bank lending; since loans are the main source of real estate finance. The impact varies in line with the dynamics of the real estate market. Due to the impact of the property prices on the profits of the banks, the growth in the real estate sector contributes to the stability of a country's financial system.

In the UAE too, the banking sector has been exposed with the booming real estate market and remained at higher levels. A leading global ratings agency recently predicted that this exposure in the UAE would increase in the coming years with the banking sector’s performance in their participation in the development of the real estate sector. The report comes after examining the potential growth witnessed during past two years in the real estate market, which now shows signs of stabilization.