Chris Waight, Head of Residential Valuations, Cluttons said: “Going forward this year, mortgage financing has eased and banks are looking more keen to lend on completed properties in specific areas.” Although availability of credit has eased, lending, however, remains cautious.

“Lenders are only willing to offer credit on projects by reputable developers and where construction is visibly progressing,” said the latest report by Cluttons, on the Dubai property market overview for the fourth quarter of 2009.

Average residential prices in Dubai stabilised in the past two quarters with sales volumes gaining momentum in the emirate, said a recent report. Majority of the sales transactions in Dubai are from cash buyers.

In the past six months, however, the residential market has started to stabilise with a month-to-month sales showing some traction.