23 August 2009
Value of mortgages in Dubai top AED 8 billion during second quarter 2009, reports REIDIN.com
Mortgage values post AED 1 billion growth versus first quarter numbers
The value of mortgages issued in Dubai topped AED 8 billion during the second quarter 2009 compared to AED 7 billion in the previous quarter, according to DUBAIFocus, a product by REIDIN.com in partnership with RERA & Dubai Land Department. REIDIN.com is the world’s first online information company focusing on real estate markets in the emerging countries. While the market is in a critical correction phase, where there is growing need for regulation and transparency within the industry – governments are taking steps to encourage stabilisation in terms of property prices and investor confidence and thus open up growth opportunities for the mortgage industry.
Statistics from ‘DUBAIFocus’ revealed that 39 banks registered 1,365 mortgages in Dubai during the second quarter of 2009. Abu Dhabi Commercial Bank (ADCB) extended mortgages worth AED 1.86 billion, from the 91 transactions it undertook within the 3-month period. This was followed by Dubai Islamic Bank (DIB), which has registered close to AED 1.83 billion from its 151 transactions, while the National Bank of Dubai (NBD) financed over AED 1.07 billion in mortgage loans in a total of 80 transactions finalised in the previous quarter.
“At present, the UAE is witnessing a downward 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, CEO, REIDIN.com.