According to data from consultancy Mortgage Finder, UAE mortgage applications in Developers in UAE increased by 78 percent over the year to April and enquirers rose by 59 percent in the same period; end users are increasingly finding long-term solutions to their housing requirements.
However the average amount of a home loan dropped from AED 1.67 million in May 2018 to AED 1.31 million in the same month of this year, reflecting the relatively weak property market, the consultancy, which is part of the Property Finder Group real estate portal,
We've seen a move from an investor-led market to an owner-occupied market; with more end-users purchasing property to live in Mortgage Finder's managing director." "This is likely because of the downward price shift that has made home ownership more affordable and achievable."
Since 2015, Real Estate Companies in Dubai has remained small, according to a study from Property Finder last year.
Data from real estate consultancy showed that for the first quarter of this year, residential capital sales prices in Dubai decreased by 12.4 percent and rental values decreased by 9 percent compared to last year. Sales prices in Abu Dhabi were 12.2 percent lower on average than in the same quarter last year and rentals were down by 6.9 percent year-on-year. However, analysts see a turnaround as investors begin to take advantage of lower rates and the economy picks up on the back of government stimulus measures.
In more than 80% of the surveys reviewed by Mortgage Finder, borrowers have opted for a fixed interest rate, an unchanged rate that applies for all or part of the period of the loan. Nevertheless, “we are seeing a few more advanced buyers opting for lower margin variable rates.