Value of mortgages in Dubai top AED 8 billion during second quarter 2009, reports REIDIN.com

Value of mortgages in Dubai top AED 8 billion during second quarter 2009, reports REIDIN.com

Mortgage values post AED 1 billion growth versus first quarter numbers

August 24, 2009

The value of mortgages issued in Dubai topped AED 8 billion during the second quarter 2009 compared to AED 7 billion in the previous quarter, according to DUBAIFocus, a product by REIDIN.com in partnership with RERA & Dubai Land Department. REIDIN.com is the world’s first online information company focusing on real estate markets in the emerging countries. While the market is in a critical correction phase, where there is growing need for regulation and transparency within the industry - governments are taking steps to encourage stabilisation in terms of property prices and investor confidence and thus open up growth opportunities for the mortgage industry.

Statistics from ‘DUBAIFocus’ revealed that 39 banks registered 1,365 mortgages in Dubai during the second quarter of 2009. Abu Dhabi Commercial Bank (ADCB) extended mortgages worth AED 1.86 billion, from the 91 transactions it undertook within the 3-month period. This was followed by Dubai Islamic Bank (DIB), which has registered close to AED 1.83 billion from its 151 transactions, while the National Bank of Dubai (NBD) financed over AED 1.07 billion in mortgage loans in a total of 80 transactions finalised in the previous quarter.

”At present, the UAE is witnessing a downward correction in loan-to-value ratios as the market dynamics continue to shift, thereby making the Dubai property market more accommodating to buyers and end-users,” said Ahmet Kayhan, CEO, REIDIN.com. “With more banks offering competitive lending ratio especially during this economic downturn, it is no surprise that Dubai’s mortgage market has amounted to such staggering value despite the slowdown. The information from ‘DUBAIFocus’ establishes a positive trend for the mortgage market, among other data that can provide valuable insights to guide users in making informed decisions.”

‘DUBAIFocus’ is the most detailed and up-to-date information source on real estate investment deals for the Dubai market based on a comprehensive database going back to 1973. It also incorporates time-saving functions such as heat maps, graphing facilities and customised chart and analysis tools. In addition to ‘DUBAIFocus’, REIDIN.com also offers products including ‘INDEXFocus’, ‘RETAILFocus’ and ‘REBIS’ (Real Estate Business Information Service). The data and information used in REBIS, which are collected from various different sources - including newspapers, newswires, magazines, research houses, financial institutions, real estate agents, legal firms, municipalities, government institutions, and consultants - are structured by REIDIN.com research and data management team into intelligence and disseminated via its website and email newsletters.

“Our product portfolio is the result of our commitment to delivering accurate and up-to-date industry information on the local and regional real estate markets, to give industry players a precise overview of the current situation and therefore help them make the right decision. To date, we have launched four products, which address the specific needs of our customers. We are working towards further developing and implementing various new features in all our products, in line with our aims to help customers through accurate and relevant industry data,” concluded Kayhan.