UAE real estate market is booming with home loan rates set to rise

UAE property market growth still climbs in 2022

With the UAE property market already witnessing record-breaking growth since the end of 2021, the market is expected to keep rising. Last year, the value of property deals in Dubai more than doubled and broke a 12-year record for the value of sales.

80% of property professionals surveyed over the past 12 months, and believe the UAE’s real estate market will grow faster over the coming year.

Prices have expectedly been on the rise with high demand for real estate, but Dubai property experts evaluated no dent in the demand.

How can a home buyer benefit financially from a booming market?

Mortgage rates fell from 5.2% at the end of 2019 to 2.5% at the start of 2021.

With the recent rate hikes, analysts see mortgage rates increasing to 4.75% - 5.25% at some point during this year compared to the 3% - 3.5% average available right now. This would be the highest level on mortgages since 2018. 

Cheaper options to buy properties boost UAE real estate prospects

The UAE has become a hotspot over the last 2 years. Research shows that the recent pandemic has revved digital changes in the real estate industry which now utilises technology to make real estate more accessible and affordable, especially due to the substantial fall in prices and costs.

There are now different platforms to partly own property in the UAE, wherein investors use a real estate investment platform (REIP) to invest in a variety of real estate options using a crowdfunding model, where your share of ownership is proportional to your investment.

So investors can take advantage of the falling market prices by allocating small amounts into REIPs without too much risk.

Is buying property a good investment right now?

If you are looking to buy property right now, Dubai real estate experts continue to recommend that now is the ideal time to buy.

Home loan interest rates are still lower than they will be at the end of this year. Availability of higher loan-to-value ratio, discounted property prices, reduced service charges, attractive property valuation, and incentives like service charge waivers means the real estate sector remains a buyer’s market.

Demand has picked up, attractive mortgage rates and a shift in demand patterns with the residential property price rally not stopping anytime soon.

The recent changes in the UAE caused many professional working people from across the world to invest in real estate, whether it's for work or to make it a long-term home.

Recent studies show expats staying 3 times longer on average in the UAE than in the past, driving greater demand for real estate investment.

So with demand still high, and prices still largely accessible, it is still considered widely a buyers’ market.

If you're looking to invest in Dubai real estate, now is the best time. Speak to one of our specialists today for more advice and the best deals in the market:

📞 +971 4 423 2006

📩 info@dacha.ae