The Dubai property market is set to see an increase in the popularity of mortgages among buyers in 2024, thanks to a projected decline in interest rates that could reach 100 basis points. This decline makes mortgage lending accessible to a wider range of consumers, especially those considering the transition from renting to owning in the face of rising rental costs.
Experts note that such changes are attracting attention as local , and foreign investors, pushing them to purchase square meters. Statistics show that most transactions in the UAE are carried out without a mortgage, but given the expected reduction in rates, the number of such transactions may increase.
Industry representatives emphasize that lower rates could help boost sales, especially among buyers looking for homes to live in. This will become especially relevant in the context of the current market dynamics, where a significant part of sales accounts for the purchase of real estate from developers offering favorable payment terms.
Experts predict that lower interest rates will increase interest in purchasing apartments, especially in the affordable segment housing. It is also expected that simplified visa policies, peer-to-peer lending platforms, flexible payment schedules, and the introduction of new investment instruments such as REITs will attract additional investment into the emirates.
Thus, 2024 promises to be a period of increased activity in the market mortgage lending in Dubai, which will help increase the number of homeowners and attract new investments into the real estate sector. We will be happy to help with paperwork and legal support of the transaction.