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Banks lending more to property buyers in UAE

Banks lending more to property buyers in UAE - Banks - lending - property buyers - UAE - Mortgage - Dubai - increasing - confidence - real estate

Mortgage lending in Dubai appears to be increasing amid growing confidence in the real estate sector that better liquidity will see a recovery by the end of the year.

Noor Islamic Bank reported that its mortgage business is 40 to 50% up on the start of the year. Dubai Islamic Bank has announced it would offer 90% financing on properties in the United Arab Emirates.

'Things have improved from last year, it's a stable situation. The market has improved,' said Fahd Reaz senior product manager in personal and home finance for Noor Islamic Bank.

Anecdotal evidence has shown over the last three months that liquidity is returning to the banking system. In March HSBC increased its loan to value ratios to 75% and 70% on villas and apartments.

But there is still some reluctance to lend to off-plan properties. Reaz admitted the bank was 'apprehensive' about lending to buyers of off-plan properties, which some suggest has fallen up to 50% in Dubai in the wake of the global crisis.



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