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The Rise of Homeownership in 2024

Posted by Warren Martin on January 16, 2024
The Rise of Homeownership in 2024

Transforming Real Estate in the UAE: The Rise of Homeownership in 2024

In 2024, big changes are expected in how people buy homes in the UAE. Experts say more folks, especially those looking to live in the homes they buy, will start using mortgages. This is because the interest rates, the extra money you pay when you borrow, are predicted to go down by up to 100 points.

What’s Expected to Change?

Mortgages vs. Cash: Right now, most people in Dubai pay for homes in cash. But that might shift. In the third quarter of 2023, more people started using mortgages (loans for homes) — 8,238 deals, compared to 16,485 cash deals. In Dubai, it’s 1,247 mortgage deals versus 890 cash deals.

Source: Zawya

Global Influence:

The United States is expected to lower interest rates, and since the UAE’s money is connected to the US dollar, it will likely follow suit. Lower rates usually mean more people can afford to buy homes, and that’s good for the market.

Metropolitan Homes’ View:

At Metropolitan Homes, we see this as a big deal. A 1% drop in mortgage rates means more people can afford to buy homes. This might bring in new buyers who thought owning a home was too expensive.

How It Affects You

For First-Time Buyers:If you’ve never bought a home before and your budget is less than Dh3 million, this could be your chance. Lower interest rates make buying a home more attractive.

For Investors: If you’re looking to invest in property, lower rates mean you might pay less to borrow money. That can make your investment more profitable.

What to Expect

Easier Monthly Payments: Lower interest rates mean your monthly payments could be more affordable. That’s good news for anyone looking to own a home.

More Choices for Buyers: With lower rates, you might have more options when it comes to choosing where you want to live.

Final Thoughts: A New Chapter

As we head into 2024, things are changing in the UAE’s real estate world. More people might choose mortgages, making it easier for them to own homes. This shift brings opportunities for both new buyers and investors. The story is just beginning, and it looks like a positive change is on the horizon.

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