Poll shows 61% will 'never' buy property in the Gulf

Easing of mortgage lending rules fails to encourage people to buy in the region.
Poll shows 61% will 'never' buy property in the Gulf
By Joanna Hartley
Sat 04 Apr 2009 03:41 PM

Almost two thirds of those responding to an online poll have said they will never buy a property in the Gulf after the real estate problems of the past six months.

The survey by Arabian Business was sent out in the wake of news that HSBC Middle East had relaxed its mortage rules and was now offering 70 percent financing for apartments and 75 percent for villas.  

Despite the easing of loans, 61 percent of responders said they would never buy a property in the region after witnessing hyper-inflated house prices over recent years, followed by the current fall-off in value brought about by the global recession.

Another 18 percent said they would not be able to even think about buying a property until mortgages offered 80 to 90 percent financing.

A positive 12 percent said the 70 percent mortgages move had encouraged them to buy.

Surprisingly only nine percent said the better deals had wetted their appetite to purchase an apartment or villa, and they were just waiting for the prices to fall further. 

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