While global property transactions often rely on mortgages, Dubai has a strong trend of cash-based property purchases. This trend, ranging from 59% to 71% of transactions since 2015, underscores Dubai’s allure for High Net Worth Individual (HNWI) foreign investors, especially with its low-interest rate mortgage environment.
Considering the surge of Ultra High Net Worth Individuals (UHNWIs) from proximate regions like India and China, Dubai’s attractiveness for the ultra-wealthy is evident.
Data suggests a potential correlation between the proportion of mortgage buyers and owner-occupiers in Dubai. With owner-occupancy rates in Dubai speculated to be lower than other global markets, the introduction of incentives such as the ten-year “golden” visa, residency options for retirees, and 100% corporate ownership laws could boost homeownership rates.
Additionally, legal reforms, such as the decriminalization of bounced cheques due to insufficient funds (effective January 2022), combined with favourable loan deposit requirements and low-interest rates, might invigorate mortgage-based property purchases in the future.
