The market has maintained a strong performance throughout the year
Mortgage transactions in Dubai set a record in 2021
The market has witnessed a great recovery and has moved in an upward direction since the lifting of “Corona” restrictions.
archival
The mortgage market in Dubai 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 witnessed the largest number of transaction registrations in one quarter, as January 2021 achieved the strongest performance with 3,004 mortgage transactions worth 20.82 billion dirhams.
strong performance
The market maintained its strong performance throughout the year, as it recorded in the last quarter of it 4,187 mortgage transactions, an increase of 10% over the same period in 2020, and 21% over the year 2019.
The market in December, when the mortgage sector usually witnesses a noticeable calm, maintained a steady performance compared to previous years, recording an increase of only 1.3% in the registrations of mortgage transactions, compared to 2020, and 3.8% compared to 2019, where The number of transactions recorded in December reached 1,178, with a value of 10.08 billion dirhams.
big recovery
The market witnessed a significant recovery following a stagnation 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 in 2021 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.
The managing director of Mortgage Finder, an independent mortgage advisory company, affiliated with the Property Finder Group, Mohamed Kiswani, attributed the remarkable growth in 2021 to several factors, which collectively made a tangible impact in the sector, starting with the various major events hosted by the UAE, such as The activities of Expo 2020 Dubai, which attracted more visitors to the country, led to the significant adjustment in loan-to-value ratios in 2020, which made buying within the reach of more people, in addition to the continuation of low interest rates.
He added, "In 2020, the Central Bank reduced the value of the first payment for buyers for the first time in the country by 5%, to reach 20% for non-Emiratis, and 15% for Emirati citizens."
He added, "The change in loan-to-value ratios made a real difference for some first-time buyers, as data issued by (Mortgage Finder) showed that 83% of its mortgage-related transactions between the first and third quarter of 2021 were for first-time buyers."
He continued: “The lowering of the down payment value for first-time buyers, and 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 2.39% only. Compared to 2019, when the highest percentage was 3.75%.”
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