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Abu Dhabi real estate market to experience growth as a result of a stabilising economy, reports say ahead of Cityscape Abu Dhabi
Abu Dhabi, UAE - New regional market research studies have revealed that the growing consumer confidence in the property market combined with a stabilising economy are expected to trigger demand for mortgages in the UAE.
Figures from a new YouGov survey, commissioned ahead of the 10th edition of Cityscape Abu Dhabi, show that 58% of UAE consumers choose mortgages and finance payments when considering current and future property investment.
This preference mirrors borrower confidence in the market as 42% of the survey respondents expect it to remain stable and 40% forecast its growth in the coming 12 months.
The findings suggest that lenders could benefit from loosening the lending restrictions in a bid to attract prospective investors, as regional and international developers prepare for Cityscape Abu Dhabi the UAE capital's leading property event, running from 12-14 April at the Abu Dhabi National Exhibition Centre.
Held under the patronage of His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, Cityscape Abu Dhabi will provide investor and homebuyers an unrivalled insight into real estate sector as developers such as Bloom Properties, Eagle Hills and Golden Season Property Management are set to sell projects directly on the show floor.
YouGov's MENASA Managing Director, Kailash Nagdev said: "Our study indicates that consumers are confident in the future of the real estate market in Abu Dhabi, with most (82%) believing that real estate prices will stabilize or grow in the next 12 months.
"It also shows, however, that consumers are being cautiously optimistic about their intention to invest so it will be important for the industry to provide wider access to market intelligence to re-enforce the investment opportunities that lie ahead.
"As developers continue to attract investments through deferred payment plans, the ability to fund investments through mortgage or finance deals still remains a major driving factor for consumers."
Meanwhile, the new Ventures ONSITE study from March this year confirms the GCC real estate market is likely to remain resilient and register robust growth by the end of 2016 and beyond, despite the recent fluctuating in oil price. Withupcoming projects leading Abu Dhabi Vision 2030, such as the US$ 1 billion Louvre Abu Dhabi in the heart of the Saadiyat Cultural District, real estate and wider business activity is expected to be rejuvenated.
Mibu John, Syndicated Research Director, Ventures ONSITE, is confident that the growth in the Abu Dhabi's industrial, tourism and hospitality sectors will boost demand in real estate this year.
"As the capital's population rises, the need to build affordable housing for an increasing workforce is gaining ground across the emirate and the government has been considering the implementation of quotas for affordable homes in new developments, an idea that could soon become reality," he said.
"The total stock of residential units is expected to increase to 256,000 units by the end of 2016 and Abu Dhabi's move to amend building and infrastructure regulations in response to severe storm damage underscores the maturing of the industry."
The increasing end-users demand for affordable houses combined with the consumers' preference for mortgage or finance payments for property investment opens up opportunities for lenders and banks, provided they offer competitive interest rates and flexible financing methods ahead of the demand curve.
Ambareen Musa, Founder & CEO of Souqalmal.com, Cityscape Abu Dhabi's Financial Content Partner, believes that the new legal framework implemented in the capital at the beginning of the year will also contribute to the borrowers' positive sentiment.
"With the recent introduction of the new property law which aims at better regulating the real estate market in Abu Dhabi, the increase in transparency and regulation will help drive growth in the market for both nationals and expatriates, she said.
And for those looking to finance their home purchase, there's no scarcity of home finance options in UAE, with almost 60% of the home loans being offered at reducing rates of 3-4% per annum, and over two-thirds offering finance for off-plan and under construction properties as well."
For property developers, the YouGov report reaffirms the belief that location is crucial when end-users decide on investing in the real estate market.
Properties near retail shopping malls are the most attractive and in demand (37%), followed by those close to public transport (36%), grocery stores (30%), mosques (27%) and hospitals (27%), according to the 1,118 residents in the UAE who were surveyed.
Cityscape Abu Dhabi is supported by Strategic Partner Department of Municipal Affairs and Transport (DMA&T), Platinum Sponsor Wahat Al Zaweya, Gold Sponsor Eshraq Properties and Silver Sponsor Masdar City. Cityscape Abu Dhabi is hosted alongside the BRIDE Abu Dhabi show. For more information, visit www.cityscapeabudhabi.com or call +9714 336 5161.
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© Press Release 2016
