Varun Sood, Acting Chief Executive Officer of Tamweel
Tamweel PJSC, the UAE Islamic home finance provider, today released data on the sale prices of properties financed within its portfolio over the past 18 months. The company reported that between January 2011 and June 2012 the sale price of properties in its portfolio increased by 10-15% on average, with appreciation most acute in mature and completed developments in Dubai and Abu Dhabi.
Among the wide variety of properties financed by Tamweel, the company witnessed price increases in excess of 15% in each of the following developments: Downtown Dubai, Arabian Ranches, Victory Heights, Emirates Hills, The Meadows, The Lakes, JBR, Palm Jumeirah, Dubai Marina, Jumeirah Village, Dubai Silicon Oasis, The Views, Business Bay and DIFC Area, in addition to increases of 10-15% in Abu Dhabi’s Al Reef Villas, Golf Gardens, and Raha Gardens.
“From when we first originated new business in 2004, to the height of the financial crisis in 2008, through to the present day, Tamweel has observed the mortgage cycle in the UAE from a unique vantage point,” said Varun Sood, Acting Chief Executive Officer of Tamweel. “We have witnessed an upward trend in UAE property prices over the last 18 months, especially in high-quality properties in mature and completed developments.”
Tamweel has seen an increase of 26% in home finance applications in the first half of 2012 as compared to the same period last year. Looking ahead, Tamweel estimates that UAE home finance transactions in 2012 will be 30% higher than in 2011. Moreover, Tamweel estimates that the home finance market will surpass AED 8 billion in 2012.
Sood added: “The increase in home finance transactions and the availability of home finance from different providers have contributed to today’s healthy market. It is important to remember that home finance in the UAE is still only a decade old, meaning enormous untapped potential still exists for the industry.”