UAE Central: Increasing interest rates may negatively affect real estate demand

Abu Dhabi – Mubasher: The UAE Central Bank said that the real estate market in the UAE witnessed a significant increase in activity and performance levels during the first quarter of this year.

In a recent report entitled “Quarterly Review of the Central Bank of the United Arab Emirates – First Quarter 2022”, the Central indicated that, looking to the future, the increase in interest rates may negatively affect the demand for real estate.

The UAE Central Bank stated that in the year leading up to March 2022, average real estate prices in the Emirate of Abu Dhabi increased by 1.5%.

He explained that the new offer in Abu Dhabi is still limited, as the Al Raha Beach area and the islands of Al Maryah and Al Reem represent 71.1% of the scheduled deliveries, according to data from the company “Reiden”..

Sales of properties in Dubai, whose construction has not yet begun, increased by 94.6% during this period, while sales in the secondary market increased by 76.1%.

A recent report issued by the Kuwait Financial Center “Markaz” expected that the real estate sector in the UAE will witness rapid growth during the second half of 2022 supported by the rise in oil prices, the growth of the non-oil sector, and the positive results of Expo 2020.

The report indicated that the real estate sector in the UAE is generally witnessing a rise in 2022, and an increase in the value of rents and real estate prices.

The report expected that the UAE would motivate investors who are looking for a stable flow of income to enter the real estate market, especially in light of the availability of relatively high rental returns in addition to the ability of tenants to bear these rents..

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A drop in gold prices in the Emirates today, Wednesday.. 21 karat loses 0.34 dirhams