Along with the growth in the Real Estate market, Dubai has experienced
simultaneous growth in its home finance sector in the past three years.
According to a recent study by EFG-Hermes the current outstanding loans stands
at Dh 11.5 billion. It is estimated by the Egyptian investment bank that the
UAE housing finance sector will grow by Dh 14bn in 2007, Dh 18bn in the year
2008, the growth is estimated to be Dh18bn in 2009 as well and Dh 14bn and Dh
17bn in the years 2010 and 2011 respectively. These figures have been derived
based on an expected population compound annual growth rate of about three
percent.
The most dominant forces in the Emirates’ home finance market are Amlak and
Tamweel. They account for over 35 and 25 percentage of the industry
respectively.
The Real Estate boom of the emirate has left the world spell bound,
EFG-Hermes predicts that the total growth in the Real Estate should exceed the
figure of Dh419bn in the years between 2008 and 2011. It has also been said
that Dh 64bn will be funded through credit. The national bank of Dubai has tied up with Dubai properties for the sole purpose of
finance apartments which are bought in tower ‘H’. Tower ‘H’ is a primary tower
for residential purposes at Business
Bay in the project of the
executive Towers. This tie up of the national bank of Dubai
and Dubai
properties, is more than welcome, as this tie up will ensure easy financing
terms for the people who are aspiring to buy apartments in tower ‘H’. These
easy schemes will mean that people will be able t finance their dream homes
with no obligations of interest repayment. In this case the loan is made
available for 85 percent of the property price of a sum of 4 million AED,
whichever is lower. This loan is provided for a period of 20 years.
Dubai’s
Islamic bank (DIB) and Al Islami home finance are also witnessing high demands
from the retail customers.
They have recently launched solutions that aim to meet the requirements of
retail customers. These customers include both the UAE nationals and
expatriates who are keen on buying property in the UAE freehold property
market.
In response to this high demand of the people, DIB has announced the launch
of Mobile Mortgage Advisors. They are a team of mortgage sales expert who will
be providing valuable consultancy at the customers door step.
Al Islami finance has launched finance solution products such as the
“forward Ijarah” and “Ijarah”. Through the “Advanced Eligibility Process”
customers get a right to choose their finance limit without first having to
choose the property.
The Dubai Islamic bank caters to the needs of a diverse customer profile.
Also the al Islami home finance provides up to 90 percent finance and a maximum
tenure of loan repayment of 25 years depending on the eligibility of their
customers.
Article Source: http://www.superarticle.com/
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