Dubai records highest number of mortgage transactions in three years



Villas / townhouses accounted for 63% of mortgage purchases among mortgage seekers in the third quarter of 2021.
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Dubai: The end of September marked a record year for the Dubai mortgage market, as the total number of mortgage transactions recorded since the start of the year has broken records for the same period in the past three years.

According to government data, Dubai recorded 68% more mortgages than the same period in 2020 and 71% more since 2019.

The previous quarter (Q3-2021) was a particularly active period in the mortgage industry, as banks and other stakeholders involved in the mortgage process reopened their operations, allowing mortgage transactions that had been suspended during the foreclosure to take place at new normally. Despite the spike in mortgage transactions after the foreclosure recorded in the third quarter of 2020, government data shows that transactions in the third quarter of 2021 still exceeded that figure by 22%.

It’s so exciting to see more and more homebuyers stepping up to the housing ladder. Now, with the opening of the Expo, we are even more excited to see what happens as we enter the last quarter of the year.

– Warren Philliskirk, Director of Mortgage Research

Favorable policies

According to Mortgage Finder data and trends, first-time home buyers in the UAE have been particularly active, accounting for 83% of mortgage transactions. In 2020, the UAE Central Bank reduced the down payment requirement for first-time buyers in the UAE by 5%, increasing it to 20% for non-UAE nationals and 15% for nationals. It is positive to see first-time buyers benefiting from this reduction in the down payment and also from the record low interest rate environment the UAE is currently experiencing.

Highly demanded villas

Villas / townhouses accounted for 63 percent of mortgage purchases, apartments made up 35 percent, and the remaining 2 percent was allocated to land, businesses and other types of property.

The most popular villa communities were Jumeirah Golf Estates, Arabian Ranches and The Springs.

Villas and townhouses have always been more popular over the past year as they opt for larger spaces with private gardens, swimming pools, etc. This is a trend that continued from 2020 following confinement.

As more and more buyers have entered the market this year, the supply issue in some choice communities has been widely documented, causing real estate prices to rise, especially for villas / houses. city. Mortgage Finder has seen this increase in house prices translate into a 43% increase in average loan amounts compared to September of last year.


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