The UAE mortgage market is set for a surge in growth as investors are becoming increasingly reliant on mortgages to purchase property, says Chris Dommett, CEO of leading independent mortgage advisor, John Charcol Dubai.
According to a recent property survey, nearly 71% of UAE investors require a mortgage to finance their property purchase, indicating a high level of demand within a local market which shows no sign of slowing down.
Experiencing massive growth, the UAE mortgage market – currently valued at AED 20 billion – is estimated grow to AED 64 billion within the next three years alone. This demand for mortgages can be attributed to a number of factors, explains Dommett: “The local mortgage market is maturing and both seasoned and first-time investors are taking advantage of attractive mortgage incentives to buy real estate.
“Rising real estate prices are encouraging property buyers to leverage their investments, while low interest rates continue to fuel demand. These incentives, combined with favorable new laws relating to real estate ownership, have enabled the UAE’s mortgage market to truly thrive.”
Previously, investors in the UAE’s property market were likely to use their own funds or release equity on other properties in their home country due to the limited availability of local finance.
The landscape of the UAE’s mortgage market has since transformed, with a number of new lenders entering the market to tap into rising demand, including banks and financial institutions that are working with an increasingly wider range of developers.
“Despite the options now available to property buyers, obtaining a mortgage can still be a complex undertaking, and a good mortgage broker can not only help identify the best deal, but facilitate the entire process,” added Dommett.
John Charcol Dubai, an independent mortgage franchise operation, was launched in 2007 and currently works closely with the country’s leading financial institutions, property developers, and estate agents to bring speed and transparency to the UAE’s property buying process.