Dubai’s property market is experiencing a surge in mortgage activity, reaching a 14-month high in May according to Dubai Land Department data. This upswing is attributed to two key factors, attractive interest rates and a growing population.
Data indicates a significant rise in demand, with the number of financed purchases exceeding cash transactions by over 55%. This trend is likely to continue in the near future due to the prevailing low interest rates. Even with potential adjustments by some lenders, the overall market competitiveness should ensure favorable borrowing conditions.
The most popular property segment lies within the AED 1-3 million range, accounting for more than half of all mortgage transactions. This is followed by the AED 3-5 million bracket. In terms of location, Downtown Dubai, Jumeirah Village Circle, Dubai Marina, Jumeirah Lake Towers, and Jumeirah Beach Residence are the most sought-after areas for apartments. For villas, The Springs, Arabian Ranches, Town Square, Al Furjan, and Reem are leading the market.
An additional factor contributing to this growth is a growing awareness of mortgage options. Prospective buyers are increasingly utilizing independent mortgage advisors to secure the most suitable financing solutions.
Previously, fluctuating interest rates may have caused some hesitation among buyers. By seeking professional guidance, individuals can explore a wider range of lenders and negotiate the most competitive terms, including interest rates and free valuations. Beyond financial benefits, advisors can assist clients in finding the ideal community that meets their specific needs and preferences. This comprehensive approach empowers buyers to make informed decisions within Dubai’s dynamic real estate landscape.
Published on: Jun 25, 2024
Source: https://www.arabianbusiness.com/industries/real-estate/dubai-real-estate-mortgage-activity-hits-14-month-high
