Mortgages will become more popular among UAE property buyers, particularly end users, in 2024 as interest rates are predicted to fall by as much as 100 basis points.
According to real estate experts, shifts in mortgage rates have a big influence on how prospective buyers approach purchasing real estate in the United Arab Emirates. They point out that many UAE renters may take advantage of this and convert to property buyers in 2024 as a result of the country’s ongoing rental price increase.
Cash buyers account for the great majority of transactions in Dubai, according to ValuStrat. In the third quarter of 2023, there were 8,238 mortgage transactions in the Dubai real estate market, as opposed to 16,485 cash deals (not counting off-plan transactions).
Abu Dhabi, on the other hand, presents a different picture in which mortgage transactions play a bigger role in the real estate market. Abu Dhabi recorded 1,247 mortgage transactions in the same quarter as opposed to 890 cash transactions (accounting for off-plan transactions).
Following eleven rate hikes, the majority of bankers and economists anticipate that the US Federal Reserve will lower rates by 25 to 100 basis points (bps) in 2024. The UAE implements the Fed’s monetary policy because the dirham is dollar-pegged.
