Lower interest rates and affordable
property prices have led to a dynamic shift from rentals towards ownership in
the UAE, said Gaurav Gambhir, managing director, Lion Mortgage Consultants.
“Mortgage books of banks have seen an
exponential growth after the UAE Central Bank relaxed the norms for first time
home buyers by reducing the down payment requirements. We foresee this growth
trend to continue primarily due to low interest rates for the near future,
influence of peers and family, in addition to the financial benefits of buying
greatly outweighing renting,” said Gambhir.
While the majority of banks are
focused on the most sought-after salaried profiles clients, there is a slow but
noticeable shift is happening with certain lenders now tapping into the self-employed
sector.
“This is an ideal segment as
businessmen went through a real-life stress test scenario due to the economic
repercussions stemming from the Covid-19 pandemic and the measures implemented,
mainly the lockdown and despite of it all they continued to service their
personal and business obligations. More than any risk assessment criteria, this
reflects the resilience and the ability of the business sector to perform even
during adverse times,” added Gaurav.
Lion Mortgage Consultants expect the
home residential mortgage market growth to continue at a steady pace. Banks
find that real estate lending carries a low risk as compared to personal loans,
credit cards and SME lending and, also has better margins than top rated
corporate lending.
People living in rented homes is
considerably higher in UAE than those living in their own properties. “Our
estimate is that around 20 per cent of the UAE households live in their own
homes, whereas the global average is 40 per cent, as more and more people look
at making UAE as their home, we see a fair opportunity for mortgage buyers in
the mid to long-term,” said Gambhir.
Ahmed Shaikhani Group Managing
Director of Shaikhani Group says it will be another acceptable advance of UAE
government to permit the exiles to remain in the nation after they got
retirement on a state of possessing a property esteemed at about $545,000. This
way clients and organizations become more adjust to their way and attempt to
polish off their work else they realize they will confront a ton of issues.
Much obliged Dubai government to keep everybody equivalent and refreshed
As the pandemic situation is that the
most incredibly terrible inside the whole world, things are really difficult to
laid out considering the way that during the current condition we've to be
amazingly mindful avoiding any and all risks to shape sure to not put work's
life in danger since this work needs immense heaps of work and appreciation to
pandemic we've to manage the 6-foot opening, so what we've given our work first
class stuff to outline sure work doesn't deal and customers will get their
lofts on time extremely 1000 units handover inside the exercises of Cambridge
business center, champions tower 1 and Frankfurt sports tower which is worth of
700 million dirham around 600 units are to be done soon inside one year in
Champions tower 3, Gardenia 1 and a few generally regard 300 Million dirham
will be pass on
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