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Thu 28 Jan 2010 07:01 AM

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Lending seen easing on completed projects in 2010

Cluttons Q4 Dubai report says prices in some established areas have risen since Q3.

Lending seen easing on completed projects in 2010
PRICE RISE: Marginal price increases were seen by Cluttons in areas like Downturn Burj Khalifa. (Getty Images)

Home loan lending will ease on completed projects in the UAE in 2010 as prices start to stabilise, according to a new report from property agents Cluttons.

The company said stability had returned to its number of transactions with approximately 60 deals done in December and a similar number so far in January, Chris Waight, head of Residential Valuations, said in comments published by Emirates Business on Thursday.

“Going forward this year, mortgage financing has eased and banks are looking more keen to lend on completed properties in specific areas,” he told the paper.

Cluttons' Q4 report on Dubai's property market, cited by the paper, said: “Lenders are only willing to offer credit on projects by reputable developers and where construction is visibly progressing."

It added that although sales volumes have started to gather momentum, there has been a continual flight from low quality properties.

Established residential communities such as in the Downtown Burj Khalifa, Arabian Ranches, and Emaar’s Dubai Marina have benefited from marginal price increases while other areas have remained unchanged from the last quarter, it said.

Some others have continued to drop, such as in Business Bay and International City, the report said.

The commercial property market in Dubai has been affected largely in tandem with the residential market, Cluttons said.

“As with the residential market, the commercial market has been historically characterised by limited supply and high demand with significant upward pressure on rental rates.”

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