Two experts: Banks initiate financing as long as the customer is qualified
60% bank financing of commercial units for non-nationals
Ahmed Arafat: “Laws of ownership for non-citizens allow the purchase of commercial units, office and investment spaces.”
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Two experts confirmed that non-nationals may own shops and commercial units in the investment areas and the ownership they are allowed to own, according to what each emirate of the country has determined.
They explained in response to inquiries received by "Emirates Today" regarding the extent of the residents' eligibility to own commercial units, whether they are shops or offices, bank financing ratios, and the down payment;
Banks provide real estate financing for this category of investors and those wishing to own a maximum of 60% of the value of the commercial unit, while the customer is obligated to the rest of the price, which he usually pays as a down payment, according to the Central Bank system.
commercial units
The real estate finance expert, Ahmed Arafat, said that the ownership laws for non-citizens allow the purchase of commercial units, office and investment spaces in the areas specified by each emirate according to the permitted scheme.
He added that real estate development companies allocate these units and offer them for the ownership of citizens and non-citizens, indicating that the resident can contract on the commercial unit, whether it is a shop or an office.
Arafat explained that banks also provide financing for commercial real estate, but at lower rates than for “residential”, as 60% can be obtained from bank financing of the total value of the commercial unit, to be paid over 15 years, as a maximum, while the customer is obligated to pay the remaining 40%. .
Arafat stated that the banks finance only the units that are ready for delivery, so the customer can pay 40% of the value of the commercial shop or office, in installments to be agreed upon with the real estate developer, pointing out that the financing rates in which the banks adhere to what is stated in the applicable Central Bank system for real estate finance. its years ago.
Legislative structure
For her part, banking expert Radwa Al-Abdullah said that the real estate market in the UAE is characterized by flexibility and diversity of opportunities, pointing out that one of the most important decisions that were taken years ago was to open the door to ownership for residents, whether it was residential or commercial real estate.
She added that many business owners prefer owning the office to paying rents that may rise or fall according to market conditions, as well as the shops, which are considered valuable assets for traders.
Al-Abdullah confirmed that banks provide real estate financing to non-nationals, as long as the commercial or residential property is ready for delivery, pointing to great cooperation between real estate development companies and banks in this regard.
She pointed out that the legislative and legal structure exists and is regulated to the highest degree with regard to the ownership of residents in the UAE, and that laws and government decisions regulate registration fees and others, so banks initiate and without any obstacles to finance as long as the customer is qualified, especially since the real estate unit remains mortgaged to the interest of the bank until Full payment of the price.
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