Better Homes reports increase in business as market gains credibility

Since the start of the year, the Dubai Land Department has implemented several laws and established a Real Estate Regulatory Authority and on the product side, the market has seen the delivery of units on three key projects. In addition to this, finance has emerged as a key contributor to the growing market.

"We have seen a marked improvement in the regulations of the industry this year. The new laws give credibility to the market. With clearly defined structures and processes, clarity has been added, providing investors with additional security" commented Billy Rautenbach, Director of Operations at Better Homes.

Rautenbach believes another plus point for the industry was the delivery of products on three large developments; Jumierah Beach Residence, the Palm Jumeirah and International City. "Delivery on these projects has been significant, creating an availability of stock across the pricing spectrum". The supply has brought desperately needed units onto the leasing market, helping to create more competitive rentals. "It is really good news for the market in general and we hope to see an emerging trend in terms of rental rates as more and more units are handed over" added Rautenbach.

With many projects still under construction, well priced completed properties are still selling well with Rautenbach reporting a tremendous increase in business when compared to the same period last year. In general, prices have increased from an average AED 1.2 to AED 1.8 million. The good news for buyers is that there is an emerging pattern where sellers are being more realistic with selling prices, possibly in light of new products entering the market and increasing options for buyers.

According to Rautenbach, finance and mortgage has been the biggest contributor to the industry in the last year; "more and more international finance companies have entered the market and with the product now being tangible, banks are more willing to lend." In fact, finance up to 99% has been offered on Jumeirah Beach Residence, making owning a home more viable and affordable for many.

All in all, for Better Homes and the industry as a whole, 2007 has been a good year so far and Rautenbach expects to see more of the same in the remaining months. "This has been our busiest summer yet and with the introduction of commercial freehold, all areas of the business are thriving"

Looking to the future, Rautenbach hopes to see more stability and more affordable properties in the rental market saying that at some point a correction is likely; "this hasn't happened so far because of project delays and an increase in numbers coming to Dubai but I believe there will be a levelling at some point because that is the nature of real estate."