Page 76 - SOBHA REALTY PR REPORT NOVEMBER 2023

Prathyusha Gurrapu

The property market, which has evolved over the past decade, has two distinct types of
buyers. The first is UAE-based residents for whom affordability has weakened as

property prices have risen, coupled with higher inflation and interest rates. The second
investor type includes high-net-worth purchasers or millionaires who continue to support
off-plan demand, some of which are based in the UAE.

“Most of these are cash buyers who are less sensitive to inflationary pressures and
rising interest rates as compared to mortgage-financed buyers. The proportion of cash

buyers has increased considerably in the last two years, benefiting from the UAE’s
reputation as a safe haven,” it said.

For example, according to Moody’s, nearly 60 per cent of Sobha Realty’s total sales in
2022 were to non-UAE residents, most of whom were cash buyers. On the other hand,
UAE-based buyers make up the bulk of development sales for Aldar in Abu Dhabi and

more than half for Emaar Properties in Dubai.

https://www.khaleejtimes.com/business/realty/dubai-heres-why-property-prices-will-continue-to-rise-
in-2024