Emirates NBD official says better mortgage rates needed to reinvigorate market
Emirates NBD said on Monday that banks must play a key role in reinvigorating the UAE's real estate sector by offering better deals on home loans.
The country's biggest bank said it was time for banks to take advantage of the "huge potential for growth in home financing".
Saif Al Mansoori, deputy head, group marketing, Emirates NBD, said in a statement: "There is huge potential for growth in home financing, and we believe it is vital for banks to play an important role in re-energising this sector."
The comments came as Emirates NBD announced the launch of a new pricing structure on mortgage loans across all customer segments, with interest rates starting at 6.99 percent for a year.
It added that preferential rates would also be available on mortgages for UAE nationals.
Al Mansoori added: "The revised mortgage pricing strategy is supportive of the current economic environment and is in line with our strategy to further grow our retail assets book."
According to the UAE Central Bank's statistical bulletin, bank mortgage loans increased by over 15 percent to AED163.19bn by the end of 2010.
Industry data also suggests that at current growth rates, the UAE's real estate mortgages market will top the AED200bn mark by mid 2011.
Mortgage financing from Emirates NBD is available for UAE nationals for up to 80 percent of the value of the property, while salaried nationals over the age of 21 with minimum three years of employment experience are eligible to apply for home financing loans up to a maximum of AED5m, the bank said.