Let’s just get straight to some facts. Almost 68 per cent of the home loans in the UAE are available at 4 per cent per an-num or less, as per a recent

study by Souqalmal.com, an online per-sonal finance portal.

Secondly, the yields on properties in Dubai, in particular, are pretty attractive. Rents on residential properties haven’t fallen in the same proportion as the prop-erty value. In 2015, home prices in Dubai fell 15 to 20 per cent as transaction vol-umes halved. The rents, on the other hand, are down by three per cent only during the same period. As per industry experts, yields for small and large apart-

ments in Dubai range between 5.87 per cent to 7.21 per cent, which is compara-tively higher than popular property in-vestment destinations such as London, Hong Kong and Singapore.

Where to buy?

Well that fundamentally depends on your budget. There are a number of ways in which you can hunt for a property that suits your pocket. You can either rope in a real estate agent to give you a better idea on the property that suits your bill, and your needs, or you can indulge in some self-research on the world wide web. There are websites aplenty that give you a fair idea of the property prices in the UAE. Some of the popular ones in-clude Dubizzle, justproperty.com, proper-tyfinder.ae, etc.

These websites have congregated data from buyers’ and renters’ perspective. You can check property prices as well as rentals, if the idea is to give the purchased property on rent and earn.

How to buy?

Getting home finance from banks in the UAE is not a difficult task if you have a constant stream of income and limited liabilities. As per the revised laws you

With numerous opportunities for busi-ness, leisure and relaxation, the UAE is a perfect place to build a comfortable fu-ture for you and your family.

With this in mind, Abu Dhabi Islamic Bank (ADIB) is now offering a unique op-portunity for UAE residents and non-residents to purchase their dream prop-erty. With very simplified eligibility criteria, customers can now benefit from finance of up to Dh20 million for up to two properties.

In response to demand from custom-ers, ADIB has enhanced its home finance offering, making the application process straightforward and introducing new products. It has never been easier to pur-chase a home in the UAE.

The bank has also introduced an eq-uity release option for property owners who would like to free capital trapped

in the value of their home or land in Dubai and Abu Dhabi. Home refinanc-ing is available to all ADIB customers, with no processing fees for almost all our products.

Meanwhile, for UAE nationals, the bank has sped up the contractor approval process, making it easier for develop-ment of land plots. ADIB is working closely with the Abu Dhabi government on the Sheikh Zayed Housing Pro-gramme, the Private Housing Loans Au-thority for Nationals and the Mohammed Bin Rashid Housing Establishment.

ADIB, the highest-ranking bank in the UAE for customer service over the last four years, is also focused on cutting un-necessary red tape. The bank has part-nered with the leading developers in the UAE to facilitate direct purchases from the companies, and has also streamlined the process for obtaining financing for owner-to-owner transactions.

ADIB operates as an ethical bank, and is fully compliant with Islamic banking rules. It is this solid foundation that al-lows the bank to offer customers im-proved home financing products that they can afford and with little risk.

Convenient and hassle-free solutions ADIB’s home finance solutions help you buy your dream house and also unlock equity in property, when in need

» ADIB

khaleej times | aDVeRtisiNG sUPPlemeNt

Why rent out when you can buy your own house?

Benign interest rates and corrected real estate prices are perfect reasons why you should consider investing in your own home now

Suneeti Ahuja-Kohli ■

Getting home finance from banks in the UAE is not a difficult task if you have a constant stream of income and limited liabilities.

» See next page

HOME FINANCE khaleej times | ADVERTISING SUPPLEMENT

have to make a down payment of 20 per cent, in case of first home, and banks can finance the rest. In case of a second or third purchase, expatriates have to pay at least half of the property value as down payment, and the bank can fi-nance the rest.

Abu Dhabi Islamic Bank (ADIB) and Union National Bank (UNB), for instance, offer finance at competitive rates.

Ancillary costs

Besides the down payment and finance provided by the bank, there are certain ancillary charges too that need to be kept in mind. For example, Land De-partment charges a fee for registration; real estate agent charges commission for the sale; maintenance charge for the building, which is usually in case of apartments and is paid annually; and insurance premium levied by the bank against the home loan.

All in all, back of the envelope calcu-lations suggest that you should have at least 35 per cent of the total value of the house as cash before you make the first move.

Reverse equity

Now let’s turn the tables. If you already have a house and wish to unlock its eq-uity without vacating it, then reverse mortgage is the solution. Occupants get a constant stream of income and also get to live in their cherished house. ADIB of-fers this facility to its customers.

There’s merit in investing in a home. Arguably, this saves a lot of money that would have otherwise made it to the cof-fers of the landlord or landlady, and also create a nest egg for retirement. If in about 10 or 20 years you plan to move to greener pastures to spend your sunset years in mountains, or by the beach, the value of your house would supplement your income and allow for a happier and financially stress-free retirement.

— suneeti@khaleejtimes.com

All in all, back of the envelope calculations suggest that you should have at least 35 per cent of the total value of the house as cash before you make the first move.

Why rent out when you can buy your own house? » From previous page

The residential market in both Abu Dhabi and Dubai witnessed subdues sales activity in 2015.

In Dubai, data from the Land Department reveals a fall of 33 per cent and 28 per cent in the volume and value of transactions, respectively, in Novem-ber 2015 compared with the same period in 2014. This comes as average rents and sales prices dropped 2 per cent and 11 per cent, respectively, in November as per the REIDIN General Index.

Following a rapid increase of residen-tial rents and prices between 2012 and 2014, the market has now clearly stabi-lised, and is matured to cater to the end-user investors rather than speculative in-vestors. The softening is expected to continue in 2016 as the market adjusts to lower levels of activity.

Rents have performed better than sale prices in all sectors of the residential mar-ket in 2015, increasing rental yields and the future of attractiveness of the sector. In Abu Dhabi, the average sale price of a two bedroom apartment remained flat over the year at approximately Dh16,000 per square metre as weaker investor sen-timent reduced transaction activity. Meanwhile rental rates for two bedroom apartments increased 4 per cent in the

first quarter of the year before flattening out at Dh163,000. With average rentals declining in the Dubai market, 2015 has seen a widening of the gap between resi-

dential rents in Abu Dhabi and Dubai.

Source: The UAE Real Estate Market 2015: A year in review by JLL

The odds are all in favour of buying Long-term outlook for the UAE real estate market remains positive, making more sense for you to invest in your own property

ADIB HOME FINANCE

Always love your home!ADIB Home Finance is one more reason to always love your home!

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No hidden charges.No hidden conditions. Just crystal clear financing terms. • First instalment after 6 months (optional)• Property insurance paid by ADIB• Up to AED 20 million finance• Automatic upgrade to ADIB Priority Banking Status• No exit fee on property sale• Cash out option is ever so easy• Transactional Cost Financing is available

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