UAE Real Estate Mortgage, especially those planning to live in the homes they buy, are expected to use mortgages more in 2024 as interest rates are predicted to go down by up to 100 points, say experts (Khaleej Times, 2024).
As interest rates on loans change, it affects how people decide to buy property in the UAE. With rent prices going up, owners who rent might decide to buy property in 2024 instead. This is because rents are going up faster than the value of properties. So, getting a loan to buy a home seems like the preferred option, especially for mid range properties.
Cash property deals are rising with less focus on loans in Dubai whereas we see in Abu Dhabi, loans are on the rise in property sales. In the third quarter of 2023 Dubai has seen 8,238 property deals with loans compared to 16,485 with cash (not counting Off Plan). In Abu Dhabi during the same period the numbers were less at 1,247 property deals with loans and 890 with cash (Khaleej Times, 2024). “This suggests that interest rates may yield a more significant influence on property transactions in Abu Dhabi compared to the prevalent cash-driven trend in Dubai,” say ValuStrat analysts (Khaleej Times, 2024, para. 13).
Bankers and experts are convinced that the US Federal Reserve will probably lower rates by 25 to 100 basis points in 2024. This is after raising rates 11 times in a row since the UAE Dirham AED is pegged to the US dollar, the AED will follow the footsteps of USD.
Luma 22 Residences
Starting Price: 1,153,110 AED
