Will Dubai’s tenants switch to buying newly finished homes on payments over 5-8 years?

Will Dubai’s tenants switch to buying newly finished homes on payments over 5-8 years?

Dubai: As rents keep gaining, developers in Dubai are using that as an argument to convince potential end-user buyers to invest in a home rather than keep renting. And developers with newly – or ‘soon to be’ - delivered homes are backing that with convincing offers. Their pitch is straight-forward – move in right now and pay off in 3-8 years. And keep the monthly payments to levels that would be comfortable enough on the income of these end-users. Developers with completed projects at Jumeirah Village, Al Furjan, and even more upscale locations such as MBR City are bringing out these offers. When rent increases have hit 20-30 per cent plus, potential buyers are taking a closer look at their options. (According to CBRE, at the half-year mark, Dubai’s rentals gains were averaging close to 25 per cent while property values were up 9 per cent.) There is another reason why the payment periods are being extended by developers. Since local mortgage rates went through successive 0.75 per cent rate hikes, there has been a drop in mortgage-backed sales. And that essentially means end-user buyers feel it’s getting too pricey to think of buying a home now, with property values