Cash-based transactions continue to dominate Dubai realty
Cash is still the king and it continues to rule Dubai’s property market despite a decline of over one-third in transactions due to a slowdown in the economy and property prices, according to official data.
Figures showed that around 85 per cent of total investment going into Dubai’s real estate is cash-based, while the remaining purchases are backed by mortgage. Since most of the purchases are spurred by cash, this shows that a large chunk of investments in property is coming from foreign investors, while mortgage deals are backed by residents.
Quoting data from the Dubai Land Department, the Central Bank of the UAE’s 2018 annual report revealed that investments in real estate with a value of deals of less than Dh10 million in Dubai fell 34.3 per cent to Dh45.6 billion last year compared to Dh69.4 billion in the previous year.
Cash payments made up 84.4 per cent while mortgages accounted for 15.6 per cent of the property deals.