Industry experts predict that Dubai’s property mortgage market will hit a staggering Dh17.5 billion by 2007, while the home finance sector has recorded a 64 per cent increase in one year, reaching Dh11.5 billion in 2006, up from Dh7 billion in 2005.
During the first year of opening up the mortgage finance market in 2003, the market had a start-up figure of Dh1.1 billion, reaching Dh4.1 billion in the following year itself, said Adel Al Shirawi, CEO of Tamweel, according to Gulf News.
Not only does this represent a phenomenal start and growth for the sector, but an inclination of finance companies to help high-end consumers owning property on easy terms, said Al Shirawi. Villas which cost around Dh1.2 million couple of years ago have gone up to Dh4 million.
The mortgage market began to take off following Dubai's opening up of the property market for freehold ownership to expatriates in 2002.
He added that the next stage of development is expected to be observed on a larger scale in Abu Dhabi and then in Saudi Arabia.