Taking advantage of the low-cost property rebound
In terms of real estate prices, the world has seen incredible lows-cost property rebound in recent years. According to Arabian Business, apartment prices will only rise by a few percent between 2020 and 2021, whereas villa prices will rise by more than 30%.
Apartments will be the way forward for most expats, and there are even opportunities on the Palm Jumeirah that were previously unavailable to many during the peak of 2014. In contrast to global fortunes, the current economic climate in the UAE is favorable to buyers.
Keeping interest rates low
The UAE’s buyer’s market is aided by low-cost property rebound interest and mortgage rates. According to Gulf News’ rate analysis, the effective mortgage interest rate for a loan taken out in the fourth quarter of 2021 will most likely be 6.5 percent.
This is significantly less than in source countries like the United States and Australia. Inflation has fallen to 3.6 percent, according to Focus-Economics, making now an ideal time for buyers to consider a new product and existing borrowers to consider paying down their mortgage. Economic conditions may shift in the coming months, resulting in additional volatility, particularly as tourism returns in full force to the Emirates; in the meantime, making the most of current properties is critical.
The housing market in the UAE is always on the rise, and there is now an eco-slant to developments, which is leading to even more optimistic indicators of progress. The National News reported on a new home built at the Mohammed bin Rashid Al Maktoum Solar Park that uses the UAE’s abundant solar energy to power energy net-zero homes. Of course, this is great news for both wallets and the environment. Buyers will benefit once again from long-term technological prices, as the value of such homes will skyrocket over time.
Is there a surge in the in the stock market?
Aside from the general improvement in the housing market, there is some news on the great Dubai that may provide additional impetus from outside sources.
According to the Financial Times, Dubai intends to re-establish its stock market in direct competition with local centers Abu Dhabi and Riyadh. This will almost certainly bring more international investment to the city, as well as increased interest in real estate securities and the possibility of new developments and third-party involvement.
Despite the fact that Abu Dhabi views growth as a risk, this is fantastic news for buyers and should provide a significant boost to the economies of Dubai and the other six Emirates.
The stock market is important for home buyers and those looking to refinance products in the short and long term. Dubai’s growth in trade and investment will only increase its value. The Emirates will continue to be a profitable real estate market for the foreseeable future.
If you’ve been anywhere near the real estate market in Dubai the last few years, you’ve probably heard about the current rebound. Depending on where you live in the country, you may have noticed a shift from a buyer’s to a seller’s market. This means that after five years of catering to every cash buyer or strong mortgage applicant who came along, sellers now have some wiggle room. The market has not recovered to the point where you can set your own price, but increased demand may spark a bidding war.
A seller’s market simply means that demand has begun to outnumber supply. As a result, landlords benefit from these conditions as well. Sellers can raise their prices because they know there is enough interest to meet that price. This gives sellers more leeway in selecting between competing offers. Instead of focusing on the strongest or most likely to close offer, they can now focus on the highest price and make a decision from a position of strength.