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Surge in UAE mortgage enquiries from mid-income bracket

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Mortgage enquiries from middle-bracket earners in the UAE have shot up, according to finance comparison site compareit4me.com. Apparently recent figures show that the highest growth in mortgage enquiries so far this year comes from people earning between AED8,000 and AED19,999 per month.

If you break that down even further, the number of enquiries made by people in the AED8,000 to AED11,999 bracket tripled between March and April this year, in comparison to the previous 22 months. As for those taking home between AED12,000 to AED14,999, there was a growth of 240 percent.

compareit4me.com CEO Jon Richards says, “Confidence in the property market has been turbulent since Q4 of last year. The UAE’s new mortgage cap rules, announced in October 2015, teamed with the cascading effects of the drop in crude oil prices certainly had an impact on the general public’s attitude to real estate here in the UAE.”

But it seems that the slight drop in property prices has tempted people to invest. He adds, “As well as the lower prices impact of the economical shifts and the new mortgage rules, there has been a sharp increase in the number of property projects completing over the past 12 months, with new residential areas popping up regularly and plans for many more over the next few years. Also the surge in availability of more affordable housing projects seems to have activated pockets of residents who were previously confined to renting.”

There has been a focus on more affordable housing in Dubai, which may explain why middle-bracket earners are keen to invest in property. New developments targeting end user buyers and lower salary brackets is definitely drawing more buyers into the market now,” says Jessica Horie, senior director at Prestige Real Estate. “I foresee a trend towards more affordable housing projects and for people with salaries AED10k and below to start to being interested in owning they’re own homes rather than paying rent.”

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