The value of the Dubai mortgage market has increased by 75 percent so far this year, compared to the same period last year, according to figures from the Dubai Land Department.
Information on the official Dubai Land Department (DLD) website shows that between January 1 and March 21 AED9.99bn ($2.72bn) worth of new mortgages were registered on the system.
This is 75 percent more than the corresponding period last year when AED5.68bn ($1.54bn) worth of new mortgages was processed.
Khadija Ebrahim, a mortgage advisor at the Independent Finance brokerage in Dubai said this is “definitely” the case on the ground in the market and that they have seen an increase in the number of inquiries from customers looking for mortgage finance.
The majority of those taking out mortgages are Dubai residents and Ebrahim said the most popular locations are Emirates Living, Jumeirah Lake Towers and Dubai Marina.
While she acknowledged that the increase was due to a low base last year, she does believe that the “banks have relaxed a bit” and are now offering better terms and conditions in order to attract customers.
Previously the average loan to value (LTV) ratios offered by the banks were on average around 70 to 75 percent, said Ebrahim. However, she said mortgages with LTV ratios of 75 to 85 percent have now become more common.
Interest rates have also come down and are as low as 6.75 percent, compared to an average of 8.5 percent last year, she added.
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