4th August 2023, The National News
Buying a home with financing in the Emirates is affordable compared with other global markets
Over the past three years, through a period of global uncertainty, the UAE’s real estate market has remained buoyant.
Low interest rates, an ample supply of homes and policies that encouraged long-term residency in the UAE meant more people were considering buying a home in the country.
While Dubai continues to lead the domestic real estate market, Abu Dhabi, Sharjah and Ras Al Khaimah are also attracting buyer demand.
The UAE dirham’s peg to the dollar, however, means that borrowers are not immune to interest-rate changes by the US Federal Reserve in its fight against inflation.
Foreign buyers are also choosing to invest in a trusted pegged currency, thereby reducing the risks of devaluation.
With 11 increases since 2022, homeowners have felt the effect, particularly those with variable interest rates.
However, buying a home with financing in the UAE is still affordable compared with the US, where home lending rates are already more than 7 per cent, a 22-year high.
Homeowners must, therefore, evaluate their options and consider ways they can manage their finances efficiently to pay off their mortgages.