Including lower interest rates and elimination of administrative expenses and appraisal fees
The recovery in demand for real estate financing and wide offers from banks
The interest rate on the real estate finance starts from 2.49% during the first 3 or 5 years.
archival
Ahmed Arafat: “There is great momentum at the level of offers, and competition between banks, to present the best ones to attract dealers.”
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Two bankers reported that the demand for real estate financing is witnessing a great recovery by citizens and residents, on all projects announced at the level of the emirates, since the last quarter of last year until now, thanks to the strong offers provided by all banks, which include interest reduction, cancellation or reduction. Administrative expenses, as well as evaluation fees.
And they confirmed to "Emirates Today" that the interest rate on real estate financing starts from 2.49% during the first three or five years, and then rises to 2.99% over the rest of the period, noting that the growth in demand for real estate financing, during the past five months, recorded a rate of 10 to 15%.
They expected the banks to start increasing interest rates gradually during the second quarter of this year, due to the high EIBOR.
real estate market
In detail, the banking expert, Ahmed Ibrahim, said, “As of the last quarter of last year, and so far, the real estate market is witnessing a great momentum at the level of buying and selling movement, which raised the demand for real estate financing,” explaining that almost all banks keep pace with this momentum. And it is trying to compensate for the stagnation period that accompanied the spread of the Corona virus, and its repercussions, as it provided many offers that include reducing the interest rate on financing, in addition to offers on fees, whether by reducing them or making them free, pointing out that the stability of real estate prices is also one of the factors that helped on market recovery.
He pointed out that «financing prices during the past few months so far, witnessed a reduction in the offers submitted, but it is expected that financing prices will rise during the second quarter of this year, due to the increase in the price of EIBOR (the rate of lending between banks), as the interest on financing is linked to it. real estate.”
big recovery
For his part, the banking expert, Ahmed Arafat, said that "the last quarter of last year, and during the first two months of this year, the demand for real estate financing is witnessing a very large recovery, by citizens and residents, on all projects announced at the level of the emirates of the state." He explained that «there is a great momentum at the level of offers, and competition between banks, to present the best of them to attract customers, as some of them reduced interest rates by 0.5% for the first three or five years, and then increased to 2.99%, while other banks provided financing by 3.25% on some Distinguished projects.
And he indicated, "The growth in demand for real estate financing recorded during the last five months, a significant growth, compared to the past two years, at a rate of 10 to 15%, which is a very good rate, given the repercussions of the Corona pandemic," noting that it is better for the customer who wants to Real estate finance took the initiative now to take advantage of the offers presented, especially in light of the expectations of raising interest rates during the coming period.
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