Key factors contributing to property price growth: proximity to casinos, water bodies or limited building area. However, there are also global reasons that affect the market.
The US Federal Reserve is planning to ease monetary policy by lowering the interest rate. How this will affect the UAE:
- Lower deposit yields: already from September, the largest banks in the Emirates are offering up to 4% per annum, compared to last year's 6%.
- The gap in yields between property and bank products will widen: whereas previously the difference was 2-3 %, now it may reach 4-5 %.
- Lower mortgage rates: mortgages in the UAE, including Dubai, will become more affordable, stimulating demand and increasing property prices.
Together, these factors will lead to increased interest from international investors and growth in the UAE property market. Keep this in mind as you plan your purchases.
