Time to buy. Why is it a buyer’s market? | AX Capital

Time to buy. Why is it a buyer’s market?

5.9.2020 | 1:20 pm

The current global situation has been causing disruption across most industries. If the pandemic has a sustained and long-drawn impact on the broader UAE economy, it will also have effect on the property market.

One of the negative effects of the current lockdown is that it has caused most activities to come to a halt in the short term, but property transactions are expected to regain momentum once restrictions are lifted as transactions are recorded during lockdown.

If you are a prospective house buyer in the market, all things are going in your favour now.

Why is it a buyer’s market?

buyers-market
  • Affordable property sales prices
  • Reduced service charges
  • Attractive price valuations
  • Low mortgage interest rates
  • Higher loan to value ratio available
  • Developers offering incentives such as service fee waivers, free gadgets, kitchen appliances, etc.

There will be certain investors or potential owners who may decide to prolong their decisions to invest in new properties until they feel more comfortable with the current situation. In this case, their option will be to continue to rent and renew terms with landlords.

Investing during a time of uncertainty is exactly the sort of time where opportunity can reveal itself

 

Due to the current global economic condition, UAE banks have tightened lending appetite based on client profiles and industry segments. With banks getting lots of requests from their existing customers to defer current monthly obligations,
the situation has further caused a reduction in banks’ earnings; however, banks are still in the business of lending.
 

Banks are still quite competitive with their lending rates and have historically reduced pricing to attract potential buyers in the market.

– Dhiren Gupta, Managing Director, 4C Mortgage Consultancy