With the decline in interest rates ... and the offers of banks and developers

20% increase in demand for real estate financing in Abu Dhabi

Bankers and real estate brokers said that the real estate market in Abu Dhabi witnessed a great boom during the second quarter of this year compared to the beginning of the year and the first quarter of 2021, which contributed to raising real estate financing by rates that reached 20%.

They told «Emirates Today» that most banks offer good offers to customers in cooperation with developers, including exemption from administrative fees or valuation fees in addition to the decline in interest rates by 0.5%, which ranged between 2.5 and 3%, indicating that some of the proposed projects were sold during Only two days, amid the desire of citizens and residents to buy, whether for housing or investment.

In detail, the banking expert in real estate financing, Ahmed Arafat, said that the real estate market in Abu Dhabi is witnessing a very big boom at the present time, specifically since the beginning of the second quarter, which raised the demand for bank financing that reaches 85% of the property value for the citizen and 80% for the resident.

Arafat added that the demand for real estate financing has increased at rates ranging between 15 and 20%, whether for housing financing or investment, pointing out that the phenomenon of seizing real estate units and paying only 5% and after a period that is offered for sale, has reappeared in light of the increase in demand for medium units that he prefers Residents are beside the luxury villas that are accepted by the citizens.

Arafat explained that financing prices have recently declined due to the decline of EIBOR, given that the pricing of real estate financing is linked to it, as the ratio is currently between 2.75 and 3%, in addition to the fact that banks, in cooperation with developers, offer very attractive offers such as exemption from administrative fees or evaluation fees. And others.

Positive sign

For his part, banking expert Ahmed Ibrahim said that the improvement in real estate prices in the second quarter of this year gave a positive indication of the return of momentum to the market, and consequently the demand for real estate financing increased between 10 and 15% according to each bank, in addition to the decrease in the price Funding itself by 0.5%, as it ranges between 2.5 and 3%.

Ibrahim pointed out that the largest proportion of the demand for financing is focused on medium housing in light of the opening of several projects to own residents, in addition to the desire of citizens to buy special units of villas and others.

The return of confidence

Ibrahim added that the return of confidence in real estate investment is also an important factor in raising the demand for financing after the year of "Corona", which witnessed fear and anticipation by individuals and investors, and a wait in the purchase.

He pointed out that banks are also trying to attract customers by offering discounts on fees to reach zero, whether for administrative or evaluation fees, which are somewhat high in view of the price of the property, as it constitutes a percentage of the total financing.

He explained that the Central Bank's raising of the financing provided by the bank by 5% to 85% for the citizen and 80% for the resident made a big difference in increasing demand and stimulating the market, stressing that all offers and partnerships between developers and banks are ultimately in the interest of buyers.

Purchase on the map

In turn, the real estate broker, Israa Al-Tal, said that real estate sales in Abu Dhabi are so popular that some projects were sold within only two days, in addition to the return of purchases on the map thanks to the many offers made by real estate development companies in partnership with banks.

She added that the purchase, whether for housing or investment, continues at a high rate, with a high turnout by citizens and residents alike.

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Bank financing of

up to 85% of the

property value of the

citizen, and 80% of residents.

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