Thanks to its location, year-round sunshine, glamorous reputation and stunning buildings, buying property in Dubai has always been popular just not always affordable.
While recent figures show that 70 per cent of UAE residents prefer to rent rather than buy property, a report by compareit4me.com, a finance comparison website, could prove otherwise.
New housing projects in Dubai mean getting on the property ladder is going to get more simple, even for those on salaries of Dhs8,000 a month.
It seems too good to be true but a report by compareit4me.com claims home mortgage enquiries have risen since the start of the year. In fact, it’s findings claim salary earners of between Dhs8,000 and Dhs19,999 per month were showing a three-fold increase.
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Those falling in the salary bracket of Dhs12,000 to Dhs14,999 a month saw a growth of 260 per cent in April, while Dhs15,000 to Dhs19,999 bracket earners showed an increase of 150 per cent in the same time scale.
The reason for the increase is down to the construction of more affordable off-plan studio projects with units going for as little as Dh375,000 in Dubai Investment Park, Arjan and Dubailand.
“The surge in availability of more affordable housing projects seems to have activated pockets of residents who were previously confined to renting. I believe this could explain the spikes we have seen in mortgage enquiries from mid-level salary earners as these new projects are opening the door to them being able to step onto the UAE’s property ladder,” said compareit4me.com CEO Jon Richards.
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Read: Why Expats Are Looking To Stay In The UAE
Jessica Horie, Senior Director at Prestige Real Estate, told Emirates 24/7: “New developments targeting end user buyers and lower salary brackets are definitely drawing more buyers into the market. I foresee a trend towards more affordable housing projects and for people with salaries Dhs10,000 and below a month to start to being interested in owning they’re own homes rather than paying rent.”
If you are among those ready to put down roots, be sure to talk to your bank about home finance. If you are after a loan remember to take these documents with you: passport copy (with valid resident visa for expats)i property document, and income documents.
Also be sure to know your rights, check out our property law feature for more details.
Image: Getty
