In the last few years, the world has seen astonishing highs and lows when it comes to property prices. Arabian Business highlights the fact that apartment prices have only risen in single digits over the course of 2020-21, though they do note that villa prices have risen above 30%.
For most expats, apartments are likely to be the way forward, and there are even opportunities on the Palm Jumeirah which for many might have been inaccessible during the heights of 2014. Indeed, the current financial makeup in the UAE is a positive one for buyers, in direct contrast to fortunes abroad.
The buyer’s market in the UAE is underpinned by positive interest and mortgage rates. An assessment of rates conducted by Gulf News highlights that the effective mortgage interest rate for a loan taken out in Q4 2021 is likely to be 6.5%.
This is much lower than in source countries including the US and Australia. With inflation now lowering to 3.6% according to Focus-Economics, it’s a good time both for buyers to be looking at a new product and for existing borrowers to consider paying down their mortgage.
Economic conditions may change in the coming months and that means more volatility, especially as tourism is unleashed in full upon the Emirates once again; in the interim, making the most of current properties is key.
The housing market is always on the up in the Emirates and now, there’s an eco-slant to developments which is leading to even more encouraging signs of development.
The National News reported on a new home, developed at Mohammed bin Rashid Al Maktoum Solar Park, which uses the abundant solar energy available in the UAE to power homes in an entirely energy net-zero fashion.
This is good news for pockets, of course, as well as good news for the planet. Once again, buyers will benefit from long-term technological prices that will also see the value of such homes greatly appreciated over time.
In addition to the general advances within the property market, there’s news on the horizon that could lead to further impetus from outside sources.
As the Financial Times highlights, Dubai is set to re-establish its stock market in direct rivalry to local centres Abu Dhabi and Riyadh. This will undoubtedly bring yet more foreign investment to the city, more interest in real estate securities, and more opportunities for new developments and third parties to get involved in those developments. That’s good news for buyers and should provide an ample boost to the economy, both in Dubai and the other six Emirates – even if Abu Dhabi considers expansion a risk.
Essentially, there is short-term and long-term value in the stock market for home buyers and those looking to refinance products. The expansion of Dubai trading and investments will only enhance that value. The Emirates will remain fertile ground for real estate for the foreseeable future.