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UAE population split 'on property purchase style'

DUBAI, April 18, 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.

Majority of Emiratis (54 per cent) preferred cash or cheque payment compared to other nationality groups such as Westerners (27 per cent), Arab expats (37 per cent) and Asians (39 per cent), stated the survey conducted by global market research company YouGov ahead of top property show, Cityscape Abu Dhabi.

The ninth edition of the UAE capital’s largest property show will run from April 21 to 23 at the Abu Dhabi National Exhibition Centre welcoming more than 130 exhibitors from around the world.

The study also reveals that 85 per cent 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 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, said the study highlighted the 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," noted Nagdev.
 
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 per cent since 2014, and will cover more than 18,000 sq m of exhibition space.

Leading real estate broker, Nationwide Middle East Properties 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, the CEO of Nationwide Middle East Properties, 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 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," stated Al Qudsi.

"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," he added.-TradeArabia News Service




Tags: UAE | cash |

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