UAE population divided as emiratis pay for property in cash but expats rely on finance
Abu Dhabi, UAE, 18 April 2015: Nationality has proved to be a significant factor in determining how investors pay for their properties, as a recent study reveals Emiratis, unlike expatriates, opt for cash over finance.
With 54% of Emiratis preferring cash or cheque payment compared to other nationality groups such as Westerners (27%), Arab expats (37%) and Asians (39%), the survey conducted by global market research company YouGov is revealed as thousands of properties prepare to be launched and showcased at Cityscape Abu Dhabi next week.
The 9th edition of the UAE capital’s largest property show, Cityscape Abu Dhabi will welcome more than 130 exhibitors from around the world to the Abu Dhabi National Exhibition Centre from 21-23 April.
The three day event is held under the patronage of His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces.
The study also reveals that 85% of property owners are more likely to be aged over 50 years old, and that overall, location is key when investing in the real estate market. Properties near retail shopping malls are the most attractive and in demand (51%), followed by those close to beaches, public parks and mosques according to 308 residents in the UAE.
YouGov’s UAE Managing Director, Kailash Nagdev commented, “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.”
Official Mortgage Provider Abu Dhabi Finance will be joined by five other banks offering competitive mortgage rates and advice at Cityscape Abu Dhabi. These include National Bank of Abu Dhabi, First Gulf Bank, Saxo Bank, Jordan Kuwait Bank and Egyptian Arab Land Bank. The exhibition has grown by 15% since 2014, and will cover more than 18,000sqm of exhibition space.
Leading real estate broker, Nationwide Middle East Properties LLC will be launching Aabar’s latest development at the event, which is a signature living tower project of 29 floors with 360 degree views and set to be completed by early 2016.
Ameen Al Qudsi, CEO, Nationwide Middle East Properties LLC said: “Due to the quality of products delivered by developers and the payment plans offered to investors the demand for housing is still increasing for end-users.
“Removing the 5% 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. 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 abroad and local investment,” Al Qudsi added.
After a successful launch edition last year, the Abu Dhabi Market Overview Forum returns on the opening day (21 April), jointly organised with JLL and supported by Masdar City. The half day Forum will draw attention to the Emirate’s latest trends and initiatives, including future developments and anticipated new real estate regulations.
Cityscape Abu Dhabi 2015 returns with support from Strategic Partner Department of Municipal Affairs (DMA), Platinum Sponsor Wahat Al Zaweya, Silver Sponsor Farglory, Official VIP Sponsor Ejadah Asset Management Group and Official Mortgage Provider Abu Dhabi Finance. For more information, visit www.cityscapeabudhabi.com or call +9714 336 5161.