Mortgage for overseas 'soon to be launched by Dubai banks'

25/05/2012 - Dubai Investment News Posted by Neil King
Mortgage for overseas 'soon to be launched by Dubai banks'

Many investors based overseas who are looking at opportunities for property investment in Dubai may soon find they have more financing options available to them.Arabian Business reports that several of the emirate's banks are close to launching a new product targeted at individuals based in other countries looking to procure residential or commercial units in the city.This is according to broker Jean-Luc Debois, managing director of Dubai-based mortgage consultancy Home Matters, who explained there are currently around three or four financial organisations that have expressed an interest in providing a portfolio of property loans for people who are non-residents."They are looking further afield because of the competition here," he stated, adding: "There are nearly 27 banks lending here but they are predominantly lending to residents in the UAE so if you want to differentiate yourself you have to look further afield where you are in a smaller pool of lenders."Mr Desbois explained banks in Dubai are increasingly returning to the mortgage market and are hoping overseas clients will stimulate growth in the lending sector in the city.The broker noted the market is particularly good for villas right now, with these kinds of accommodations performing favourably over the past 15 months, with prices rising by 25 or 30 per cent since the beginning of 2012.These houses are particularly attractive to wealthy overseas investors looking to procure luxurious dwellings in sought-after areas.Dubai's largest bank by market value is Emirates NDB and the organisation said last year that it is looking at launching a mortgage aimed at foreign buyers after the federal government in the UAE moved to extend property visas for up to three years for homes worth AED 1 million (£173,658) or more.Real estate developer Tamweel also said last year that is would be offering loans on completed homes in the emirates of Dubai and Abu Dhabi worth between AED 1 million and AED 5 million to investors from countries such as the Gulf Cooperation Council, the UK and the US.