When it comes to property prices, the world has experienced incredible highs and lows in recent years. Apartment prices have only climbed in the single digits over the span of 2020-21, according to Arabian Business, whereas villa prices have increased by more than 30%.
Apartments are going to be the way forward for most expats, and there are even chances on the Palm Jumeirah that may have been unreachable to many during the peak of 2014. In contrast to international fortunes, the current financial climate in the UAE is favourable to purchasers.
Keeping interest rates low:
Positive interest and mortgage rates in the UAE support the buyer’s market. According to a rate analysis undertaken by Gulf News, the effective mortgage interest rate for a loan taken out in Q4 2021 will most likely be 6.5 percent.
This is far lower than in source countries such as the United States and Australia. According to Focus-Economics, inflation has dropped to 3.6 percent, making now an ideal moment for purchasers to consider a new product and existing borrowers to consider paying down their mortgage. Economic conditions may shift in the coming months, resulting in further volatility, particularly as tourism returns to the Emirates in full force; in the meantime, making the most of current properties is critical.
Recent Developments:
In the United Arab Emirates, the housing market is always on the rise, and now there’s 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 leverages the UAE’s plentiful solar energy to power homes that are completely energy net-zero. Of course, this is wonderful news for wallets as well as the environment. Buyers will once again benefit from long-term technological prices, which will see the value of such homes skyrocket over time.
Is there a surge in the stock market?
Aside from the general improvements in the housing market, there is some news on the horizon that could provide additional push from outside sources.
Dubai is planning to re-establish its stock market in direct competition with local centres Abu Dhabi and Riyadh, according to the Financial Times. This will surely attract additional international investment to the city, as well as increased interest in real estate securities and potential for new developments and third-party involvement. Even though Abu Dhabi considers growth a risk, this is fantastic news for buyers and should provide a significant boost to the economy in both Dubai and the other six Emirates.
For house buyers and those looking to refinance products, the stock market has both short-term and long-term importance. Dubai’s development of trade and investment will only add to its worth. For the foreseeable future, the Emirates will remain a fruitful ground for real estate.
