91 billion bank loans for Dubai properties in 10 months
Dubai's real estate finance market has recorded a significant jump in performance since the beginning of this year, after injecting AED 91.3 billion into various mortgage deals in the emirate with a 61% year-on-year growth of AED 56 billion.
According to AlBayan.ae, land has emerged as a major player in increasing the momentum of the mortgage market and the most profitable real estate sector. The land, with a wide variety of uses, especially land, accounted for 79.5 billion dirhams, Residential and commercial apartments at 8.5 billion dirhams, while the total value of residential mortgage deals more than 3.3 billion dirhams.
The banks and banks, after abandoning the tightening of lending, have been moving for two years in the direction of increasing mortgage finance, driven by three engines: the first economic growth and stability of the real estate market and its efforts to increase revenues at the end of the fiscal year.
Raise the ceiling of lending to 85% of the property value
The earlier step in light of comments by informed sources that the Union of Emirates banks earlier that the Union is considering applying to the Central Bank to ease the rules of mortgage lending in order to stimulate the real estate market.
For the first time, home buyers with a value of AED 5 million can not borrow more than 80% of the value of the property if they are UAE nationals, while the lending ceiling for foreigners is 75%.
Sources told Reuters that the Retail Banking Committee of the Emirates Bankers Union proposed raising the maximum to 85% for UAE nationals and 80% for foreigners.
They said the ECB's executive advisory board, composed of heads of executive banks, was considering the proposal, and if approved, it would be presented to the central bank.