They confirmed that there are 6 cases in which it is preferable to rent rather than buy
Realtors: 5 factors that make buying real estate the best option for residents
Real estate prices are moderate and suitable for purchase.
Emirates today
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Officials of real estate companies in the country said that buying real estate for residents is better than renting it during the current period, supported by the great facilities provided by real estate development companies, and the availability of most real estate projects in the country free ownership for all nationalities, the golden residency system, and the abundance and diversity of supply, in addition to that Real estate prices are currently moderate and appropriate, noting that prices rise over the years, and the buyer receives a profitable profit, if he decides to sell.
They added that the rental option is still better in six specific cases, on top of which are those with small salaries, who are linked to fixed-term work contracts, or to external contracts, and they move from one country to another, and those who work in jobs that are not stable, and do not plan to stay in the Emirates for a long time, and the coming Newcomers, and the category that cannot manage the down payment for bank financing for the purchase of real estate, which amounts to 20%.
In detail, the Chairman of the Board of Directors of the Arabian Gulf Investment Company, Khalifa Al Muhairbi, said that “the real estate market is witnessing at the present time a great activity in purchase and sale operations,” adding that “the market is more suitable for buying real estate than renting it during the current period, in light of the large facilities Provided by real estate development companies, especially for off-plan sales, as many companies no longer require a buyer’s account statement, and they also require payment of 5 or 10% at most of the property value, as an advance payment, and the rest over a number of periods of up to five years , until the end of the construction and building operations,” noting that the facilities provided by development companies made many real estate buyers not resort to banks for financing, so that the percentage of those who rely on banks to finance the purchase of real estate does not exceed 20% at most, of the total buyers.
Al Muhairbi pointed out that "the demand for golden residency, which guarantees staying in the country for many years, and the requirement to purchase real estate in some cases, in addition to the fact that the UAE is a safe haven in the midst of a turbulent world, has made many people prefer to reside there and buy real estate, whether for housing or investment." He pointed out that "purchasing a property is the best life insurance for future generations at present."
He noted that "rent is no longer the best option for many residents, as it was before, but it is still the best option in specific cases, and it is for small-salary owners, who are linked to fixed-term work contracts, and who work on external contracts, and move from one country to another." .
Al Muhairbi pointed out, in this regard, that up to 40% of tenants have already purchased properties on the map, and are waiting for completion, to move to or offer for investment.
For his part, the real estate expert and CEO of Medallion Associates, Masoud Al-Awar, said, “Buying is better during the current period, given the nature of the current real estate cycle, which is characterized by developers offering a large number of properties, especially on the map, delivered within years, in At the same time, rents are high, which makes buying more profitable than renting.”
Al-Awar noted that "the large facilities from the developed companies, the large supply, and the stability of prices are factors that support the option of ownership now."
He pointed out that "the rent is better for workers in small companies, who receive small salaries, and newcomers to the state, especially since most of the people on the map are not ready for housing at the moment."
The Executive Director of the "Skyline Real Estate Brokerage Company", Nader Hassan, said that "a large number of residents have a lack of information, which makes them not make the right decision in choosing between buying or renting a property," noting that "the past years have witnessed a remarkable change in Real estate development projects, making buying for the purpose of housing or investment a lot easier and more flexible than before.”
Hassan explained, "Real estate developers have recently resorted to offering stimulating offers to purchase real estate through monthly installments without a down payment or with a down payment representing 5%, and sometimes 1%, of the property price, so that the resident owns the property after several years, for housing or investment. This is in contrast to the previous period, in which companies requested a down payment, which constituted a large percentage of the property price, and paid a percentage of the unit price, often ranging between 30 or 40% during construction and the rest upon receipt, which made it difficult for a large segment of dealers.
Hassan noted that "this change was driven by the availability of most real estate projects in the country for free ownership by all nationalities, as well as the introduction of the golden residency system, which motivated many to own real estate."
At the same time, he stressed that “ownership is not suitable for three specific categories, namely: those with salaries of less than 20 thousand dirhams, those who work in jobs that have a character of instability, and those who do not plan to stay in the UAE for long years, but are linked to a specific situation or temporary projects, And they want to come back soon.”
For his part, the director of Platinum Home Company, Ahmed Salah Rabie, confirmed that “buying an apartment, even if it is small, consisting of a room and a hall, is much better than renting a villa for several years,” noting that it is in the tenant’s interest to benefit from any amounts paid for rent, By employing it in real estate financing to buy a property.
Rabie explained that “the purchase prices of real estate are moderate and appropriate at the present time, and there is a great diversity in the supply, in addition to the fact that real estate prices rise over time, and do not decrease, so that he obtains a profitable profit, if the buyer decides to sell them after years.”
Rabie noted that “the category that cannot arrange the down payment for bank financing for the purchase of real estate, which amounts to 20% according to the Central Bank law, and the development company does not provide them with sufficient facilities for purchase, is the category for which renting is better than owning.”
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