The continuous slowdown in real estate sales transactions in Dubai, UAE, is helping international property firms to re-explore investments in the city's property sector, said a report.

The slowdown in the third quarter and also the previous two quarters has been welcomed by these investors and end users (both buyers and sellers), as they see more solidity and clarity in the overall real estate market, according to Mena Properties (MPS), a Dubai-based real estate firm.

Thanks to the new development, there has been an increased interest in Dubai properties from end users in the Indian sub-continent, followed by the US and the UK, it added.

According to MPS, the sales prices have overall remained flat with pockets of "anxiety sales" appearing in the emirate. "This is due to investors who are over exposed and wishing to restructure their investments and finances," it added.

The real estate company stressed that there will be no "crash" in Dubai property market but a continued correction over the fourth quarter leading to a more sustainable real estate market.

MPS said there has been a considerable interest in commercial investments and interest in office space primarily in the Jumeirah Lake Towers area. It has seen a 10 per cent increase in enquiries for investment opportunities with investors looking to achieve at least eight per cent net.

The firm alsdo continues to recognise interest in apartments between Dh600,000 and Dh1.5 million ($163,339 and $408,330) and between Dh3.5 million and Dh5 million ($952,810 and $1.36 million), in the villa communities, both in main stretch Dubai and suburban communities.

According to MPS, both end users and first time investors are keen to step up on the property ladder and are reducing their initial appetite to a more achievable investment with plans to benefit from capital appreciation over 12 to 24 months and upgrade accordingly.

However, the mortgage deposit amount of 25 per cent still remains challenging and MPS believes that "rent to own" schemes as well as extended payment plans must be considered, it added.

The property expert said interest in the rental market remained strong as more transactions occurred in affordable suburban locations.

The vacancy rates are expected to increase in primary locations by the end of the fourth quarter thus creating a shift back to these areas in the first half of 2015 as prices will begin to be more affordable again due to increased vacancies, said MPS.

On the 2014 outlook, MPS said the overall movements in the third quarter were once again healthy for the real estate market as they create a pricing equilibrium across Dubai.

All in all, order is being restored and the market is definitely witnessing restructuring with capped mortgages, increased transfer fees and reduced launches, stated the report.

The movement has benefited less established areas, but as prices soften on the main stretch, there will be a partial shift back to this area leaving both established and non-established communities with healthier supply and prices.

The fear of overinflated prices in the suburbs due to the shift will be balanced by the pricing equilibrium and hence contribute to the overall consistency of the market, it added.-TradeArabia News Service