It highlights a number of locations including Dubai Marina, Jumeirah Lakes Towers, The Greens, Arabian Ranches, The Springs and The Meadows where it say one in six transactions is for owner occupier homes, double the rate of four years ago.
Consultants Unitas says in its study, Home Ownership: Dubai’s Road to Prosperity 2013, that it is a sign that the residential real estate market has recovered from the lows of recent years when some areas saw prices fall by up to 60%.
According to Sameer Lakhani, there has been a steady rise in the number of mortgages being granted which adds to the maturity of the property market.
The firm expects this trend of growing home ownership to continue in 2013 and the report points out that the creation of new jobs in Dubai World Central and Al Maktoum airport will act as a magnate for jobs and therefore people seeking to buy a home.
Dubai’s population is forecast to top 3.25 million by 2020 and the increase is expected to stimulate residential and commercial demand, said Lakhani.
The report also indicates that while villa communities have always been preferred by mid to high income end users, The Greens complex which is mainly apartments has also witnessed high interest from owner occupiers with property ownership rising to 23% of the total number of units.
Unitas Consultancy also highlighted what it calls ‘the renaissance of JLT’, pointing out that the development has closed the gap with neighbouring Dubai Marina when it comes to prices, and is now considered as a preferred destination for the middle and upper middle class. The mortgage ownership in JLT is almost identical to private sector developments in Dubai Marina.
‘Our outlook for 2013 is that Jumeirah Lakes Towers and Emirates Living are expected to outperform as end user ownership gathers pace. A migratory effect will take place in areas such as Jumeirah Village and Sports City as tier one markets start pricing out middle income families,’ explained Lakhani.
The firm also expects rental rates in these areas to increase by between 15 and 20% this year. Overall it expects the market to exhibit steady double digit growth, accelerating the trend of home ownership as the significant growth in the emirate’s population stimulates residential and commercial demand.