The United Arab Emirates (UAE) mortgage sector is experiencing a profound transformation, fueled by robust interest from overseas and non-resident investors.
Accounting for up to 40% of bookings, non-residents are playing a pivotal role in driving the demand for home loans in the UAE. With mortgage financiers offering loans of up to AED80 million ($21.8 million) and competitive interest rates as low as 4.99%, the UAE’s real estate market is witnessing considerable traction, according to experts.
Non-Residents Driving Market Growth:
Non-residents, primarily from the GCC, UK, US, Germany, and India, constitute a significant portion of overall mortgage bookings, ranging between 35% to 40%.
This trend underscores the UAE’s attractiveness as a global investment destination, buoyed by its dynamic economy, world-class infrastructure, and cosmopolitan lifestyle.
The influx of international investors and expatriates seeking lucrative real estate opportunities further solidifies the UAE’s position as a preferred destination for property investments.
Accessibility for Non-Residents:
Rajender Prasad, Managing Director of Money Maestro, emphasizes that non-residents can now easily secure mortgages in the UAE, offering them a gateway to invest in the country’s vibrant real estate market.
Eligibility criteria vary among banks, with factors such as minimum post-tax salary, creditworthiness, and global financial standing taken into account. While documentation requirements differ, typical documents include identification papers, proof of employment, and financial statements.
Loan Terms and Options:
The Loan-to-Value (LTV) ratio, ranging from 60% to 70% on a case-to-case basis, and competitive interest rates starting at 4.99% make UAE mortgages attractive to non-residents.
The maximum tenure applicable is 25 years, with the loan maturity capped at the age of 65 years. Banks in the UAE offer varying maximum loan amounts, with some extending financing of up to AED80 million ($21.8 million), providing ample opportunities for investors to explore.
Leading Institutions and Mortgage Solutions:
Leading banks such as HSBC, CBD, DIB, Mashreq, and Emirates Islamic are at the forefront of offering mortgage solutions to non-residents.
These institutions provide tailored financing options, catering to the diverse needs of international investors and expatriates.
With a commitment to fostering a conducive environment for global talent and investments, the accessibility of mortgage options underscores the UAE’s proactive approach towards attracting foreign capital and stimulating economic growth.
The UAE mortgage market’s surge, driven by substantial interest from non-residents, reflects the country’s allure as a premier investment destination.
With competitive loan terms, attractive interest rates, and accessible financing options, non-residents are increasingly capitalizing on the opportunities presented by the UAE’s flourishing real estate sector.
As the country continues to attract global investments and talent, the mortgage market’s growth trajectory is expected to remain robust, further bolstering the UAE’s position as a hub for international investors and expatriates.