Cash buyers have been dominating the UAE property market for some time. But did you know which nationality buys most properties for cash?
A new survey by YouGov says that 54 per cent of Emiratis prefer cash or cheque payment, when compared with other nationality groups such as Asians (39 per cent), Arab expats (37 per cent) and Westerners (27 per cent).
According to the survey, overall location is key when investing in the real estate market. It also revealed that that 85 per cent of property owners are more likely to be more than 50 years old.
The survey also revealed investor preferences based on important landmarks in the Emirates. Properties near retail shopping malls are the most attractive and in-demand (51 per cent), followed by those close to beaches, public parks and mosques according to 308 residents in the UAE.
YouGov’s UAE Managing Director, Kailash Nagdev, comments, “The study highlights continued confidence in the local real estate market with three-quarters of first time buyers preferring to purchase properties in the UAE.”
“However, customers are looking to invest in more than just a residential unit, which is challenging developers to come up with innovative investment propositions and attractive mortgage schemes to make them affordable for those making their first step onto the property ladder,” Nagdev adds.
Increasingly, investors are seeing value in buying properties due to several reasons and the demand for housing is still increasing for end users.
“Removing the five per cent cap on rental increases has raised the income and return on investment for individuals who choose to buy, making it a more favourable option than renting, says Ameen Al Qudsi, CEO at Nationwide Middle East Properties LLC. “Governmental regulations have restored investor confidence in the Abu Dhabi real estate market over the last few years and by providing more infrastructures, we have seen a rise in future projects across all sectors. This pumps a whole new consumer segment into the market, which can come from both foreign and local investment.”