Property market experts have said that a large number of residents in the United Arab Emirates (UAE) do not own a property in the country.
The latest data showed that just around 30 per cent of UAE residents have actually purchased a house in the country. This means that a large majority of 70 per cent do not own property and are on rent. Experts say that large property down-payments as well as bank's reluctance to lend money has made it difficult for many residents to purchase house in the country.
The prices of apartments and villas have been falling steadily in the country but still many have decided against buying a property due to affordability. Experts said that if an expat wants to buy a Dh1 million flat in Discovery Gardens, International City or other similar locations, they need to set aside Dh327,000 in cash, which is very difficult for many expats in the country.
They also pointed out that besides the deposit, the buyers are also required to pay other fees worth approximately Dh77,000including land department fee, registration fee, real estate broker commission and bank and valuation fees and others. The central bank in the country requires expatriate buyers to have at-least 25 per cent cash deposit for properties priced up to 5 million and 35 per cent for above Dh5 million. Steps to ease buying restrictions could boost the property market and increase home ownership in the country, according to experts.
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