Compare Listings

Lower Interest Rates and Lower Property Prices Increase Demand for Ownership

Lower Interest Rates and Lower Property Prices Increase Demand for Ownership

According to Gaurav Gambhir, managing director of Lion Mortgage Consultants, lower interest rates and affordable property prices have resulted in a dynamic shift from rentals to ownership in the UAE.

While most banks are focused on the most sought-after salaried clients, select lenders are beginning to dip into the self-employed sector in a slow but visible way.

"This is an ideal segment as businessmen went through a real-life stress test scenario due to the economic repercussions stemming from the Covid-19 pandemic and the measures implemented, mainly the lockdown, and despite it all, they continued to service their personal and business obligations. More than any risk assessment criteria, this reflects the resilience and the ability of the business sector to perform even during adverse times, "-Gaurav.

The growth of the residential mortgage industry is expected to continue at a healthy rate, according to Lion Mortgage Consultants. Real estate lending has a lower risk than personal loans, credit cards, and SME lending, and it also has greater margins than top-rated corporate lending, according to banks.

In the United Arab Emirates, the number of people living in rented homes is significantly higher than the number of people living in their own homes. "We estimate that roughly 20% of UAE households own their houses, whereas the global average is 40%. As more people consider making the UAE their home, we see a fair chance for mortgage buyers in the medium to long term, "said Gambhir.

Source: Khaleej Times

Related posts

Property is Booming in “Sanctions-Free” Dubai, as Russian Interest Soars

DUBAI, United Arab Emirates — Emirati property magnate Hussain Sajwani is on a high following a record start to the year for Dubai's property market.

Continue reading

Expo 2020 will Provide Real Estate the Boost it Needs

The Expo 2020 Dubai event is intended to help tourism, hospitality, retail, transportation, and banking.

Continue reading

Investors are Drawn to Dubai’s Real Estate Market

According to experts, Dubai's real estate sector will continue to be an appealing investment destination for a wide range of interested parties.

Continue reading