Budget Plays an Important Role in Lifestyle
Budget plays an important role in one’s lifestyle. It’s the first step to develop a…
Out of Dh3 billion, only 22.15 of apartment transactions last month in Dubai were financed with a mortgage even though prudent mortgages are getting popular. The calculation carried out by LD revealed that the rest of financing which was 2.34 billion was done with cash. This figure is higher because past January, the financing was 20% with mortgages (worth Dh545 million).
By the mid of last year, cash transactions were near 80% of total apartments sold and based on figures this year released by the same LD, mortgages accounted for 46% of all land and housing sales. Tony Graham, EVP of a certain bank emphasized on the point by highlighting that those people who buy on cash are different because they are real investors who invest in property while a UAE native will have a different behavior because he sees the property as a place to live in.
Risk and loan management is one of specialties of a bank but they are being urged to lend more. MD of Damac Properties stated that he believed that bank is too hesitant and that they need a practical, non-resident mortgage option. He also asserted that Dubai can benefit from property investment is mortgage is made easier.
Launch package in every new project initiated must now include Real Estate Regulatory Agency’s approval and proper documentation, with the title deed and details of escrow used to provide investors with confidence.
MD of Damac Properties again adds that unless and until such is made sure, mortgages are never going to be big factor of Dubai’s real estate market saying that the regulation in real estate market is providing the reassurance and legal recourse for those who invest. He ends with saying that the banks should come forward and support the growth to attract more investors from the world.