Recent findings from the 2024 Mortgage Finder Report highlight a significant trend in Dubai’s property market: nearly 30% of new homeowners in 2024 purchased properties after receiving rental eviction notices.
From Renters to Homeowners: A Practical Choice
The report shows that instead of searching for new rental properties, many Dubai residents are choosing to buy homes. This shift comes as landlords exercise their right to issue eviction notices when selling properties or moving in themselves.
Long-term Residency Drives Purchase Decisions
The research indicates that 65% of buyers cited extended UAE residency plans as their main reason for purchasing. The financial mathematics support this decision:
- Mortgage rates average 4%
- Rental yields exceed 6%
- Monthly mortgage payments often cost less than rent
- Property ownership builds equity instead of paying increasing rents
First-time Buyers Lead the Market
According to Dubai Land Department records and the report:
- 74% of borrowers are first-time homebuyers
- 94% purchase for personal use
- 26% are experienced buyers focusing on investment
Buyer Demographics and Mortgage Trends
The mortgage market shows clear patterns:
- 41% of borrowers earn between AED 30,000-60,000 monthly
- 26% earn up to AED 30,000
- 53% fall within the 31-40 age bracket
- 95% are UAE residents
- Average loan amount: AED 1.7 million
- Typical repayment term: 21 years
Market Growth and Mortgage Activity
The mortgage sector shows strong momentum:
- 2023: 29% growth in mortgage transactions vs 21% in ready sales
- 2024: 39% increase in mortgage transactions vs 11% in ready sales
Practical Guide to Property Purchase
For new buyers, important considerations include:
- Initial investment requirement: 26% (20% down payment plus 6% transaction fees)
- Minimum monthly salary requirement: AED 15,000 (varies by bank)
- Banks offer same-day mortgage pre-approval
- Important factors: credit score, employment duration, existing debt
Property Maintenance Considerations
Buyers should factor in:
- Community service charges
- Utility costs
- Higher maintenance costs for apartments compared to villas
- Property value research before purchase
The Dubai property market continues to demonstrate strong growth, with mortgage transactions showing particular vigour. For long-term residents, the financial benefits of ownership versus renting present a compelling case for property investment.
JobXDubai 
Leave a comment