Financing requests recorded a growth of 10-15% during the second quarter
Abu Dhabi real estate is witnessing a great recovery... and an increase in the volume of financing
Several factors contributed to the return of momentum to the real estate market in Abu Dhabi.
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Two bankers and an executive at a real estate company confirmed that the real estate market in Abu Dhabi has witnessed a great recovery since the beginning of the second quarter of this year, with the increase in the volume of financing provided by banks, at a time when there are still strong investment opportunities in the proposed projects that can secure an annual return of up to 8 %.
They explained that the regulation of the market during the past five years, the provision of many options and its diversity, as well as new laws and decisions to grant golden residences to talents and entrepreneurs, factors that contributed to the rapid recovery of the market after the pandemic of the Corona virus (Covid-19), while there has become a great selectivity. By buyers focused on the site.
They expected to "Emirates Today" that the market will continue its momentum and recovery during the current quarter as well, noting that the awareness of citizens and residents has greatly increased about the nature of the real estate market and levels of confidence in investing in this vital sector.
big recovery
In detail, banking expert Ahmed Arafat said that the second quarter of the current year 2022 witnessed a great recovery in the real estate market in Abu Dhabi, with a noticeable increase in the volume of financing provided by banks, whether by citizens or residents, due to the great demand for purchase and ownership, especially that some The projects are due to be delivered in a number of Abu Dhabi regions.
Arafat added: “The market is expected to continue its activity and recovery during the third quarter of 2022, thanks to the high awareness among dealers, their understanding, and their understanding of the issue of raising the interest rate by the Central Bank, which usually takes place in conjunction with a similar hike carried out by the US Federal Reserve.” .
He pointed out that banks offer financing facilities to mitigate the effects of raising the interest rate, which has already been absorbed, at a time when dealers continued to turn to financing requests.
He explained that real estate financing applications recorded a growth of between 10 and 15% during the second quarter, indicating that although banks do not finance until the units are completed and delivered, the demand is high due to the delivery of projects.
Supporting factors
Yasar Abu Hijleh, CEO and founder of Smart Concept Real Estate in Abu Dhabi and Dubai, said: “It can be said that the real estate market in Abu Dhabi has recovered after the Corona virus pandemic, and there is great selectivity by buyers focusing on the location, especially the most popular projects. And attractiveness on the islands of (Yas) and (Saadiyat), in addition to the rest of the distinctive areas in Abu Dhabi.
She added: "There are several factors that have contributed to the return of momentum to the real estate market in Abu Dhabi, the most important of which is the correct regulation that took place during the past five years, and the provision of various options for citizens and residents, many of whom have preferred to own property, in addition to granting golden residencies to talented, talented and entrepreneurs."
She stressed that this successful system in regulating the real estate market in Abu Dhabi also contributed to attracting investors from outside the UAE, who consider real estate a safe investment that achieves rewarding returns, especially in light of the business climate in the UAE, and its stability, which may not be available in many destinations. global investment, as well as fluctuations in other sectors.
She indicated that the management of the health crisis caused by the Corona virus in the UAE exceeded many other countries that are classified as advanced, and accelerated the return of momentum and recovery to the real estate sector, which is the main engine of the economy.
Options and facilities
In the same context, banking expert Sheikha Al-Ali said that the most important characteristic of the real estate market in Abu Dhabi is the diversity of options, and their response to the requirements of all segments of society, whether it is ordinary or luxurious housing, in addition to the distinguished location of the projects that are being delivered, or those under construction.
She added that real estate development companies provide facilities to customers in terms of paying the down payment, allowing it to be paid in installments according to the customer's ability during the construction period, and then financing rates can be obtained upon delivery, which is estimated at 85% for citizens, and 80% for non-citizens, according to the Central Bank system.
Al Ali stressed that the real estate movement in Abu Dhabi is witnessing remarkable activity and momentum this year, at a time when there are still strong investment opportunities in the proposed projects that can secure an annual return of up to 8%, pointing out that many tenants are currently moving to own property, after allowing it to residents.
Al-Ali stated that real estate projects in Abu Dhabi are also characterized by distinctive views and areas, in which the Abu Dhabi government has provided all services and facilities, at a time when banks are racing in financing shares, and various facilities are provided to customers.
The Abu Dhabi market is characterized by a diversity of options, and to meet the requirements of all segments of society.
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