Banks report increased mortgage lending in Dubai

 

More announcements last week from some of Dubai's major financial institutions are showing increased levels of mortgage lending in the emirate. The figures, released by the Noor Islamic Bank have reported an increase in their mortgage business of around 40-50% on the start of the year. In more positive news, the Dubai Islamic Bank also announced that they would be starting to offer 90% financing on properties located within the UAE.

 

The announcements are the latest in a series of positive reports on the Dubai property market, and whilst caution is still being exercised by many, it does seem as though many feel a period of price stabilisation has begun. The latest reports, demonstrating the increased levels of liquidity in the market are seen by many leading analysts as being critical to market recovery.

 

Fahd Reaz, a Senior Product Manager at Noor Islamic Bank went on to say "Things have improved from last year, it's a stable situation. The market has improved."

Whilst the overall market sentiment may well be improving, there remains a more cautious approach to investment in off-plan property in Dubai. Reaz admitted that the Noor Islamic Bank was still 'apprehensive' about lending to purchasers of off-plan property in the emirate.