A 75% increase in property lending in Dubai so far this year compared with the same time last year indicates that confidence could be returning to its hard hit real estate market.
The latest figures from the Dubai Land Department show that between January 1 and March 21 AED9.99 billion ($2.72 billion) worth of new mortgages were registered. This is up 75% on the corresponding period in 2009 when AED5.68 billion ($1.54 billion) worth of new mortgages was processed.
Khadija Ebrahim, a mortgage advisor at the Independent Finance brokerage in Dubai said his company has seen an increase in the number of inquiries from customers looking for mortgage finance.
The majority of those taking out mortgages are Dubai residents and Ebrahim said the most popular locations are Emirates Living, Jumeirah Lake Towers and Dubai Marina.
Although the increase is coming from an extremely low base she said that she does believe that the banks are beginning to offer better terms and attract customers.
Terms are improving slightly. A year ago the average loan to value (LTV) ratios offered by the banks were around 70 to 75% but now they are between 75 and 85%.
Interest rates have also come down and are as low as 6.75% for some products compared to an average of 8.5% last year.
Meanwhile renowned UK real estate organisation Women in Property has opened its first branch in Dubai. Formed in 1987 the group, which currently has over 1,400 members and 12 regional branches, represents all disciplines in the property and construction industry.
It aims to provide a supportive forum for professional women in the property and construction sectors to exchange views, network, develop professionally and create new business opportunities.
‘In a region of the world which is sometimes unfairly perceived as not allowing women to maximise their talents and forge their own paths, the UAE leads the way within the region in demonstrating the enormous contribution that women can, and should, make to the business world,’ said Guy Warrington, the British Consul General in Dubai.
‘The property and construction sector here is very strong and there are a lot of women in those sectors doing incredibly well. The UAE has a good reputation for allowing women to follow a good career path and maximise their talents. Another great thing about Dubai is that we get the benefit of people’s know-how from so many different walks of life and cultures,’ said Georgina Reynard, Chairman of WiP UAE and Senior Associate at Pinsent Masons.
