24 October 2005

Property mortgage market in Dubai

As the mortgage business proves to be successful in Dubai, more banks are likely to enter the market, especially once the property law comes into force. With the increasing number of banks entering the mortgage market the competition will increase, leading to lower interest rates, industry experts say.

Almost at its third anniversary, the freehold Dubai property market has already generated an active mortgage market, with more than half a dozen players offering both fixed and variable rate products.

Banks and other financial institutions are gearing up by exploring the advantages of the freehold property market, with half a dozen financing institutions, including four major banks, namely Dubai Islamic Bank, Mashreqbank, Rakbank and HSBC in addition to Emaar’s financing arm Amlak, establishing their supremacy in the field and offering ‘home loans’ to potential buyers.

More here.