Mortgage transactions in Dubai set a record in 2021
The Dubai mortgage market set a record in 2021, as the total number of mortgage transactions with the Dubai Land Department reached 19,520, exceeding the figure recorded in 2017 by 26%.
The first quarter of the year saw the highest number of transaction registrations in a single quarter, with January achieving the strongest performance of the year with 3,004 mortgage transactions worth AED 20.82 billion.
The market maintained its strong performance throughout the year, with 4,187 mortgage transactions recorded in the fourth quarter, an increase of 10% over the same period in 2020 and 21% over 2019.
The market in December, when the mortgage sector usually witnessed a noticeable calm, maintained a steady performance compared to previous years, recording an increase of only 1.3% in registrations of mortgage transactions compared to 2020 and 3.8% compared to 2019, reaching The number of transactions recorded in December was 1,178 with a value of AED 10.08 billion.
The market witnessed a significant recovery in the wake of the recession that hit it during the first half of 2020, during which strict closure measures were imposed to confront the global health crisis, but it has moved in an upward direction, since restrictions were lifted in Dubai, and maintained this trend throughout 2021.
Comparing the overall growth in the mortgage market last year with the same period before the global health crisis in 2019 provides a clearer picture of this growth, as the number of mortgage transactions in 2021 increased by 57% compared to 2019.
For his part, the managing director of Mortgage Finder, Mohamed Keswani, said: “The remarkable growth in 2021 is due to many factors that collectively made a tangible impact in the sector, starting with the various major events hosted by the UAE, such as Expo 2020 Dubai, which attracted more Visitors to the country, leading to a significant adjustment to loan-to-value ratios in 2020 that made purchases within the reach of more people, as well as continuing low interest rates.”
He added: "In 2020, the Central Bank of the UAE reduced the value of the down payment for first-time buyers in the country by 5%, to reach 20% for non-Emiratis and 15% for Emirati nationals. The change in loan-to-value ratios made a real difference for some time-buyers. The first, where data from Mortgage Finder, the independent mortgage advisory company affiliated with Property Finder Group, showed that 83% of its mortgage-related transactions between the first and third quarter of 2021 were for first-time buyers.
He continued, "The reduction in the value of the down payment for first-time buyers, along with low interest rates, allowed buying opportunities for a larger segment of people, as buyers were able to take advantage of excellent mortgage offers to enter the real estate market, thanks to fixed interest rates that ranged between 1.99% and 2 Only 39% compared to 2019, when the highest percentage was 3.75%.
Follow our latest local and sports news and the latest political and economic developments via Google news