Real Estate and House Sales in Dubai
Investors and end-users alike are always looking to find a house for sale at the right price and the Dubai houses for sale price can certainly be considered very attractive when compared to other locations. Zawaya Property is well placed to assist those interested in purchasing property in Dubai.
Micro and Macro Factors
There are two kinds of factors that can impact property prices, micro and macro. The micro factors are those directly related to the property itself, whilst the macro factors are those factors that are more to do with the general economy.
Economic Data
The state of the overall economy itself is obviously going to have a huge bearing on the value of property. A number of economic indicators can be studied to identify the general health of the economy. These include GDP, unemployment data, inflation figures and income growth. An analysis of this data will give a relatively clear indication of the economic conditions and such conditions will significantly influence property values and prices.
Interest Rates
Interest rates are a second economic indicator. Interest rates have the most direct impact on property prices because they directly influence how much a borrower has to pay each month for a mortgage. Higher interest rates mean less can be spent on capital repayment, thus the amount a buyer will be willing to spend on a property might be less.
Investment Outlook
The general investment outlook also influences the property market. Investors will choose a variety of different investment vehicles at any given time and the more investors in a particular market, the higher the value of products in that market. It's estimated that at least 20% of the US real estate market is investor driven, for example. So there is clearly a significant role being played by the international investor community in property price fluctuations.
Government Policies
Government initiatives are also a factor that influence property prices. As an example, the mortgage interest tax credit scheme in the US probably drives up property values by as much as 25%, due to the tax savings on mortgage payments. In the UK, the government abolished tax breaks on mortgages in 2000. Such schemes directly influence disposable income and clearly increase or decrease the affordability of property, thereby affecting property values and prices.
Micro and Macro Factors
There are two kinds of factors that can impact property prices, micro and macro. The micro factors are those directly related to the property itself, whilst the macro factors are those factors that are more to do with the general economy.
Economic Data
The state of the overall economy itself is obviously going to have a huge bearing on the value of property. A number of economic indicators can be studied to identify the general health of the economy. These include GDP, unemployment data, inflation figures and income growth. An analysis of this data will give a relatively clear indication of the economic conditions and such conditions will significantly influence property values and prices.
Interest Rates
Interest rates are a second economic indicator. Interest rates have the most direct impact on property prices because they directly influence how much a borrower has to pay each month for a mortgage. Higher interest rates mean less can be spent on capital repayment, thus the amount a buyer will be willing to spend on a property might be less.
Investment Outlook
The general investment outlook also influences the property market. Investors will choose a variety of different investment vehicles at any given time and the more investors in a particular market, the higher the value of products in that market. It's estimated that at least 20% of the US real estate market is investor driven, for example. So there is clearly a significant role being played by the international investor community in property price fluctuations.
Government Policies
Government initiatives are also a factor that influence property prices. As an example, the mortgage interest tax credit scheme in the US probably drives up property values by as much as 25%, due to the tax savings on mortgage payments. In the UK, the government abolished tax breaks on mortgages in 2000. Such schemes directly influence disposable income and clearly increase or decrease the affordability of property, thereby affecting property values and prices.
Should you wish to know more about the real estate market in Dubai, Zawaya Property can help you. Zawaya can manage your property or help you find a new home, and offers a full range of real estate services.
Tags: find a house for sale, real estate market in Dubai, Dubai houses for sale
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