Dubai Real Estate Sees Surge in Mortgage Activity, Reaching 14-Month High

The mortgage in Dubai increases to the 14-month high in May, according to the Dubai Land Department, it is the second highest month of all time. This increase has been occasioned by low interest rates and on record there are over thirty thousand new expatriates in the country this year and are in the market searching for houses to buy.

Major areas of apartment mortgages include Downtown Dubai, JVC, Dubai Marina, JLT, and JBR. For villas, some of the most preferred among the others are The Springs, Arabian Ranches, Town Square, Al Furjan and Reem.

The real estate firm, Allsopp & Allsopp highlighted mortgage rate numbers in May as standing at a three years high where finance buyers topped cash buyers in a 55. 8 percentage ratio, a double of the figure in April. Connor Humble of the Allsopp & Allsopp company – Mortgage services manager said, “I think now is the perfect chance for buyers to look for a home mortgage at the current low rates Some may say that some of the banks have increased their rates slightly, true; nonetheless, others are still to do it meaning that these friendly rates will be around for a while longer and we are foreseeing more mortgages in the next few months. ”

The number of properties sold for AED 1 to 3 million was highest and took the lion share of 56% of all sales, the prices between AED 3-5 million ranked second and comprised 25 percent of the sales.

Lewis Allsopp, the chairman of a mortgage brokerage firm, Allsopp & Allsopp, pointed to improvement of the mortgage knowledge as the factor escalating the activity. He said, “It has become a trend for people to seek the services of independent mortgage advisors before approaching their banks to be told about their chances fully. If the buyers only engage one bank, they cannot be offered the best terms of mortgage, they are shuttled to all the banks and negotiated for the best terms ranging from free valuations to better interest rates. ” This he said after they had observed how beneficial this is to the buyers.

Allsopp continued to stress that mortgage advisors assist the buyers to find communities that suits them most because of the rate of handed over units. Such a perception of options is considerably more advantageous for buyers in terms of making a proper decision.

As the conditions remained positive in the future, therefore the mortgage in Dubai will maintain its growth helping the strong real estate industry in the city.