Banks increase mortgages as property market settles
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Banks are steadily increasing their mortgage offerings as the property market reaches the bottom of the downturn, analysts say.
There were about Dh8.7bn worth of mortgages given out to buyers in the second quarter of the year, which was about Dh1.4bn more than the first quarter of the year, according to data from the market research company REIDIN.com. Already, the third quarter is shaping be even better, with Dh9.5bn worth of mortgages issued so far, the data show.
“The UAE is witnessing a downwards 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, chief executive of REIDIN.com. “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.”
Mr Kayhan’s company has compiled an online database of every property transaction registered with the Dubai Land Department since 1973.
