Confidence appears to be creeping back into Dubai’s real estate market after the latest data revealed the value of mortgages in the emirate increased by AED1bn ($272m) from the first quarter to the second.
The value of mortgages issued in Dubai between April and June this year totalled AED8bn, compared to AED7bn for the first three months of the year.
During the same period 39 banks registered 1,365 mortgages, according to the information released by Dubai Focus, a partnership between the Real Estate Regulatory Agency (RERA) and the Land Department.
These figures cover all types of mortgage lending, including funded land sales and office blocks and not just personal mortgages for homes.
Abu Dhabi Commercial Bank (ADCB) issued mortgages worth AED1.86bn from 91 applications in the second quarter.
Dubai Islamic Bank (DIB) registered close to AED1.83bn of mortgages from 151 applications, while the National Bank of Dubai (NBD) financed more than AED1.07bn worth of mortgages for 80 customers.
”At present, the UAE is witnessing a downward correction in loan-to-value ratios as the market dynamics continue to shift, thereby making the Dubai property market more accommodating to buyers and end-users,” said Ahmet Kayhan, CEO, Reidin.com, an online information company focusing on real estate markets in emerging countries.
“With more banks offering competitive lending ratio especially during this economic downturn, it is no surprise that Dubai’s mortgage market has amounted to such staggering value despite the slowdown,” he added.
Dubai Focus gathers information on the emirate’s real estate investment deals based on a database which dates back to 1973, the firm said.
Meanwhile, the value of rents in Dubai continued to fall in August with some signs of stabilisation, the Landmark Advisory said on Monday.
The cost to lease homes in the majority of areas across the emirate fell by between 10-30 percent, figures showed. But apartments of good quality in Dubai Marina increased by 11 percent for 1-bedroom units and by 6 percent for 2-bedroom units.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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