Banks are doing their part in keeping home loans affordable

Although the UAE experiences a drop in real estate demand over the summer months as residents travel, 2023 has been quite different. There has been a massive surge in the population, with people moving here due to the robust economy and attractive visa regulations.

This helped Dubai real estate demand stay strong.

That is why despite interest rates going up over the past two years, demand doesn’t seem to be declining. The high rental yields have also become an attractive proposition for investors.

In fact, property prices in some localities have gone above previous peaks, which is indicative of the RoI (return on investment) property owners are seeing from Dubai, which is quite unmatched when compared to other global cities.

This year, the number of mortgage transactions through the summer saw growth compared to the same period in 2022. The UAE’s strong economy also resulted in job and income stability, which in turn is allowing people to manage their payments.

The market didn’t expect hikes from this week’s US Federal Reserve meeting and the pause will encourage buyers. We have seen most banks keeping rates stable, with one even reducing their rates further, which all signals a positive outlook for home buyers.

Overall, the mortgage market remains buoyant, despite global economic concerns. The UAE Central Bank has done extremely well to keep interest rates affordable with rates starting from about 4.24 per cent for a fixed 3-year period.

With mortgage rates in the US going over 7 per cent, the UAE continues to deliver incredible value from financing to ownership given the strong RoI for owners.

Source: Gulfnews.com