Dubai real estate is a huge real estate and property market for investment during the past few years. Dubai is the second largest Emirate in the UAE but is the most booming region among the 7 Emirates. It is having a massive development and has lured in a lot of foreign investors to participate in its real estate and property projects.
Dubai Mortgages are not mature previously
Few years back, I still recall at that time when a foreign investor was looking for a mortgage, he will be confronted by confused local constructors and real estate agents. Even when a foreign investor finally found a Dubai bank that would willing to borrow him a mortgage, the interest charges can be insanely high and the whole process was very time consuming and the investor will end up quit from buying. Luckily after some years to now, the real estate market in Dubai is start get maturing and those sizeable Dubai banks have started to realize that Dubai mortgages are actually a very lucrative business.
The previous problems for getting a Dubai mortgage all rooted from the local banks that are not familiar with mortgage services and have created a lot of difficulties for international investor to secure the freehold property. However, after the declaration on 12th March 2006 in which that non UAE residents are eligible to own freehold properties in certain Dubai areas, substantial interest has been arouse for international investors. Demand is suddenly surge up to the sky and property is always in short supply status since a lot of off plan construction projects happen to sell out in days of launching.
Dubai Mortgages Sector
Today, with regulations passed and certain areas in Dubai are open to foreigners for freehold ownership, finally the local banks are willing to issue mortgage to investors. The Dubai mortgage market can said to be very competitive in the region and most investors are of their due diligent as they are not willing to endure for getting ripped off with high interest rate for the mortgages they are apply for.
The property market in Dubai is not the same with property market of other countries where most Dubai freehold property hasn’t purchased through any mortgage. As a result, this provides the financial market a lot of resilience. However, most of Dubai mortgage lenders and of conservative types and they will only give loans to non Dubai residents within the freehold zones.
Properties that are available for international investors are including: Dubai Marina, Dubai Sports City , Jumeirah Village, I.M.P.Z. International Media Production Zone, Shaikh Zayed Road, The Palm Jumeirah, The Lagoons, International City, Jebel Ali Airport, Palm Deira, Dubai Land, Emirates Road, Downtown Dubai ,Business Bay and some others.
Thus, the reason for many international banks are interest to do the mortgage business in Dubai is because they foresee a very good opportunity for releasing mortgages in the region which can get very handsome repayments. The population in Dubai is at the moment stand at 1.4 million and it’s estimated that in 2010 Dubai population will raise to 3.5 million. Most international banks are predicted an enormous demand for real estate and property, and this is going to create a huge market for mortgages.
It is also anticipated that most of the newly increase of Dubai population would be comprised of people from abroad. And Dubai by then going to be a genuine multi-cultural and multi-national city. The thing is actually happen as you may go out to experience nightlife in Dubai and you are going to see a truly multi-national people hanging around.
The international banks future are vibrant as international buyers tend to feel safer by apply for mortgage from the lenders that they been familiar to deal with.
To sum everything up, Dubai mortgages are showing good sign from the banks and international investors will have more flexibilities when come to invest in Dubai real estate and property.
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