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Dubai News, Events & Happenings

Mortgage deals hold their own in Dubai realty

30-Oct-2016 :

Dubai: UAE banks are certainly comfortable with what they are seeing in Dubai’s real estate — mortgage transactions (including refinancings) are now averaging close to 50 per cent of all apartment sales in the year to end September. And in some months these are pushing into the 60 per cent range, as end users make their presence felt and provide a boost to those developers with projects nearing completion.

Here’s some of the data from recent months — for the first nine months, mortgages made up 49 per cent, being a part of 3,829 deals out of 7,873 transactions done altogether. That compares with the 36 per cent for the whole of 2015 (4,637 deals out of 12,130 in total). And it gets even better over 2014, when mortgage as a part of the overall sales activity in apartments was estimated at 26 per cent (5,076 out of 19.265), according to data from Reidin-GCP.

But the increased mortgage percentage this year also shows up other details — that the number of apartment sales in Dubai are yet to recover to 2014 levels. Or even 2013’s for that matter, when the total number of apartment sales were more than 21,000 units and mortgage-based deals made up 22 per cent (4,610 units) The spike in activity this year could be because buyers want to get into the market now rather than wait and then see local mortgage rates rise as and when the US Federal Reserve increases the base rate.

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