Lootah Real Estate Development (Lootah) – one of the region’s most prominent real estate developers – said there has been an increasing number of Dubai residents shifting from renters to homeowners as a host of factors are making it more attractive for UAE residents to be a first-time buyer
Dubai (Pakistan Point News - 28th Aug, 2020) Lootah Real Estate Development (Lootah) – one of the region’s most prominent real estate developers – said there has been an increasing number of Dubai residents shifting from renters to homeowners as a host of factors are making it more attractive for UAE residents to be a first-time buyer.
Lootah cited attractive property prices, lower mortgage rates, higher loan to value ratio, long-term confidence in Dubai, and the work-from-home set up as the five top reasons why more people are getting on the property ladder.
Attractive property prices and lower mortgage rates
Saleh Abdullah Lootah, CEO of Lootah, said the current property prices, which are 30 per cent lower than the market peak in 2014, are very attractive and offer a great opportunity for real estate ownership. In addition, banks have been showing more willingness to lend as reflected in the active mortgage market in the UAE.
“On the one hand, we see more buyers willing to buy and on the other, we see more lenders willing to lend,” he said.
Meanwhile, Russell Owen, COO of Lootah, said: “This growing market transaction is driven by professionals and families seeking affordable homes that are conducive both for residential and working lifestyle whilst building equity.”
One of the properties in good demand is Lootah’s Living Garden development, which offers state-of-the-art facilities and is located in the sprawling sub-urban neighbourhood of Jumeirah Village Circle.
With properties starting from AED 425,000, residents can enjoy living in a community that is just 15 minutes away from Dubai International Airport and Dubai Downtown, and 10 minutes away from Al Maktoum International Airport, Jebel Ali, and Expo 2021 site. Living Garden offers residential apartments with superior finishing, including an external façade with aluminium vertical elements and glass windows, porcelain tiles and counter tops.
Higher loan-to-value ratio
“Another factor is the increased loan-to-value ratio which makes it much easier for people to buy their first house, thanks to the Central Bank of the UAE’s initiative to support the mortgage market,” Owen said.
Following the outbreak of the COVID-19 pandemic, CBUAE has issued a decree which makes it possible for expats to borrow up to 80 per cent of their property purchase price and up to 85 per cent for UAE nationals, an increase from the previous 75 per cent and 80 per cent, respectively. This means the down payment requirement has been reduced significantly.
Long-term confidence
Whilst these factors encourage people to buy rather than rent, they will not do it without their clear confidence in Dubai as a long-term investment destination. Lootah said: “The growth in the number of expatriates who are interested in real estate investments signifies that they are becoming more confident in the market. It’s not just because of the lower prices and interest rates, it’s also because people believe in the Dubai story.”
Work-from-home
Lootah added that the work-from-home trend is also helping fuel the demand from first-time buyers, as renters opt to invest the money that they are saving into buying their own homes. With this, he said they can finally get an abode where they can attain a poised kind of living perfect both for their leisure and career activities. Data from online job service FlexJobs showed that people who are working from home can save as much as AED14,000 a year.
“Living Gardens allows residents to attain both a homey vibe yet also a conducive area for work, thanks to its quiet and sophisticated location, rooms, and amenities including a spacious gym, covered parking, roof landscaping and water features. The state-of-the-art facilities within Living Gardens embody Lootah’s long cemented reputation as a reliable builder of innovative developments,” the CEO emphasised.
Owen added: “There are so many intangible benefits in home ownership that is not just related to financial and monetary reasons such as the sense of stability, being part of a community, and the ultimate pride of ownership. And we at Lootah are committed to continuously providing the highest standards of living as homeowners’ partners.”
