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Ramadan in Abu Dhabi: buying property during the Holy Month

Ramadan is the holiest month of the year, and is the peak season for real estate investment in the UAE. The main reasons for this are the generous offers and flexible payment terms from developers, the lack of fierce competition among property investors, as well as special discounts from banks and lenders. Investors will be able to benefit from profitable deals, available only during the period of the holy month. We have prepared a special article with information about the advantages of property investment and the nuances of buying real estate in the emirate of Abu Dhabi during the period of Ramadan.

Ramadan's impact on real estate investment

During Ramadan in the UAE, business activity in many sectors mostly ceases. However, according to the statistics of the PropertyFinder portal, real estate sales during the holy month practically stay the same.

Note! It is recommended that you make sure that your real estate agents are available during Ramadan.

Over the past few years, real estate sales during this period has actually declined slightly. But an important factor here is the fact that Ramadan has been occurring during the summer months, which is a lazy season in the UAE. The hot season in the country is characterised by high temperatures and dryness, which greatly reduces the desire of investors to go out and search for real estate. In addition, many foreign investors may be on holidays, which also has an impact on the reduced number of transactions and opportunities.

Note! The official religion of the UAE is Islam, therefore it is very important for tourists and expats to know and understand all the cultural nuances during Ramadan. To find out more information about the rules of conduct in the UAE during the holy month, read this article.

Is it beneficial to purchase property in Ramadan?

The holy month of Ramadan is a period to be watched closely in terms of property. A slight slowdown in the UAE real estate market during Ramadan is a great opportunity for investors to buy real estate in the best and most popular areas of the emirate without the fierce competition that comes during other months of the year. Purchasing property in Ramadan may provide you with opportunities that were not previously available to you, for example, you will have more time to view suitable options and you may be offered more favourable terms by investors.

During Ramadan, there is no sharp economic slowdown in the real estate market because many people avoid acquiring real estate during this period. Therefore, there is neither an increase in supply nor a drop in demand in the sector.

Note! Real estate agents recommend investors to invest in property during Ramadan due to a big advantage of the generous deals, which are exclusively offered in the UAE during the period of the holy month.

Favourable offers

Another advantage to buy real estate during the holy month are the decent property prices for residences and plots. Developers in the UAE are more willing to negotiate in Ramadan and offer different discounts, which gives buyers a good opportunity to avail a big profit from your real estate investment.

In Ramadan, banks and lenders also offer special deals and discounts on loan rates. In order to encourage more people to invest in property, they provide reduced loan-to-value (LTV) ratios, as well as the longer loan tenors, which helps to manage borrowers’ finances and reduce the EMI burden on them.

In the UAE, during Ramadan, brokers and real estate agencies will make generous offers in honour of the holy month. Offers can be made in the form of special payment plans that cover some administrative fees, or simply reduce a percentage of the real estate price.

Purchasing an off-plan property

Ramadan is also a good period for investing in off-plan property, as big discounts and flexible payment plans are offered by developers. Property owners will be able to resell real estate for a higher price in the future, because the costs will only rise as the complex is being developed.

In the UAE, leading development companies often launch major off plan projects shortly before the beginning of Ramadan. Investors can acquire off-plan real estate with fewer instalments and rent them out after the completion of the complex.

Another way to generate profit from buying off-plan property is long-term capital gains, which are higher than those offered by existing projects.

Buying property with Metropolitan Capital Real Estate

Metropolitan Capital Real Estate is one of the biggest and leading real estate companies in the UAE capital. Our agency provides local and foreign clients with a full range of services related to real estate, including support, advice and assistance with all property requirements. We are ready to offer a variety of both ready and off-plan properties for sale in Abu Dhabi.

Our agents are fully ready for Ramadan and can find the most suitable real estate or investment property for you at any time of the year. We will guide you through the whole process of buying real estate in Abu Dhabi from start to finish, which allows you to relax and not worry about all the formalities & paperwork that is associated with purchasing property in the UAE.

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