More Dubai tenants consider buying property

Rising rents, low mortgage rates drive shift in attitude, industry experts say

Dubai: The concept of renting and hopping from one apartment to another has become unrealistic for some tenants in Dubai and many are now warming to the idea of owning a home.

Property experts in the UAE have observed a change in attitude towards home ownership and say this shift is driven primarily by rising rents and easier mortgage terms.

Residential rents have been rising recently, owing to the recovery of the real estate market. During the first six months of the year, rental values across Dubai went up by 11.3 per cent.

Interest rates on mortgages in Dubai have dropped over the last three to four years from 9 per cent to 4.5 per cent per year. Banks are also offering other incentives to would-be homeowners, such as discounts on processing and valuation fees, and reduced interest rate during the first year.