76 % of UAE residents surveyed reluctant to buy property

54 per cent of residents polled were still opting for property rental over ownership

Three quarters of people in a new UAE survey said they would like to buy a house in the country, but said they were reluctant to do so.

According to compareit4me, 76 per cent said they would like to buy, but listed various factors, including house prices, among the reasons stopping them.

This was despite apartment sale prices in Dubai going down by 3.6 per cent from April 2014 to April 2015, and villa prices dropping by 3.7 per cent over the same period, the finance website said.

It also found that 54 per cent of residents polled were still opting for property rental over ownership because they were unsure as to how long they will remain in the region

Meanwhile, 36 per cent stated house prices as the reason they choose to rent over buying, with 12.4 per cent giving the requirement of a 25 per cent deposit when purchasing a property as the main factor stopping them.

Jon Richards, CEO of compareit4me.com, said: “The number of people staying beyond two years is increasing, so it’s worth residents doing the sums to calculate if home ownership would be more beneficial for them. For example, buying a villa in The Meadows, Dubai, costs around Dhs6 million.

“Over five years the cost of rent on the same property would amount to around Dhs1,400,000, a lost chance on gaining any capital appreciation and paying into an asset that’s entirely yours.’’

Courtesy: business@7days.ae