The prospects for the UAE real estate sector are good as the Dubai market is on its way to maturity while demand for properties in Abu Dhabi is picking up. The capital is likely to garner the interest of more investors in the months to come, according to a latest report by Bayut.com.

The UAE's leading property portal said the Dubai real estate market continued its price correction in August while Abu Dhabi registered some healthy spikes in both the rental and sales markets.

In its latest data, the property portal said the price stabilisation in Dubai coupled with steady or rising rents have made the emirate's real estate a better-than-ever proposition for a buy-to-rent decision.

Rubbishing fears of a market slowdown and falling prices, the Bayut.com report said developers across the emirate continued with new project launches at Cityscape Global 2015 as buying activity picked up at the end of August ahead of the premier property event in the region.

Rumours of an impending crisis and excessive supply have so far turned out to be exaggerated as not many of the anticipated 25,000 units have actually hit the market. The general sentiment in the market is one of resilience, with most stakeholders attributing the current period of slow growth to seasonal fluctuations and depreciating value of several currencies.

Bayut.com believes the cycle will take a U-turn in the coming months, especially when a new set of buyers enters the market to cash in on the now-popular affordable housing segment.

Affordable housing

"With property developers beginning to respond to the needs of this important segment, many tenants will likely take the jump to becoming homeowners in the near future, leading to enhanced activity and demand for housing in the real estate sector," it said.

The property portal said studio rents across Dubai's most popular localities remained stable in August 2015. Dubai Marina and Downtown Dubai, which were among the top five locations for renting in Dubai, recorded a slight drop of four per cent and one per cent respectively due to a decreased demand from luxury home-seekers, who have been affected by a strengthening dollar.

Jumeirah Lakes Towers, Business Bay and Bur Dubai, the other three localities that make up the top five list, posted stable or marginal increases in rental values in August 2015 compared with August 2014, it added.