A recent propertyfinder.ae survey has found that 70 percent of residents in the UAE are still renting.
This is contrary to other developed parts of the world such as the UK, specifically England and Wales, where the figures are the exact opposite, with 64 percent residents were owning and only 36 percent renting.
Lukman Hajje, propertyfinder Group CCO, said: “It is clear that the want is there, but the high deposit requirements, the fees, the mortgage cap and stringent lending policies, are what’s stopping the market from maturing. If we can overcome these points – I can really see a bright future for the UAE property transaction market.’’
Year on year expats staying longer in the UAE, and with rental yields across the UAE ranging from 6 per cent to 10 percent for apartments, most people understand the cost of renting for three to five years could easily cover the deposit. Yet, 70 percent of those surveyed still rent.
The main reason cited by the renting community for refusing to purchase their own homes was affordability concerns. A combined 69 percent answering that prices were too high, adding they couldn’t raise the necessary deposit or they were unable to qualify for the loan amount required to borrow.
The number of people staying in the country longer than planned is increasing; 54 percent ended staying longer than expected and property enquiries on the propertyfinder.ae are the highest they have been since 2014.
