The figures from Tamweel correspond with a number of recent reports that highlight sale increases in Dubai whilst painting a more positive picture of Abu Dhabi.
- Applications for home loans increased by 26% in H1
- Applications could rise by 30% by the end of the year
- Sales prices in areas of Dubai & Abu Dhabi have increased by 10-15%
Many recent reports have highlighted the fact that Dubai property prices have increased over the course of the year, however neighbouring Abu Dhabi has somewhat failed to impress over the course of 2012.
However, the latest reports from Tamweel highlight that sale prices have risen in both emirates stating that the sale prices of the properties that they have financed over the past 18 months have seen increases of around 10 and 15 percent.
The property financiers have said that the most dramatic increases were seen in ‘mature’ and completed developments such as Arabian Ranches, Emirates Hills, Jumeirah Beach Residence and the Palm Jumeirah in Dubai as well as Golf Gardens, Al Reef Villas and Raha Gardens in the UAE capital, Abu Dhabi.
Acting Chief Executive, Varu Sood commented: “From when we first originated new business in 2004, to the height of the financial crisis in 2008, through to the present day, Tamweel has observed the mortgage cycle in the UAE from a unique vantage point.”
More people have applied for loans this year as well, with applications for home loans increasing by 26 percent for the first half of 2012 and the company are predicting that applications will be 30 percent higher than 2011 by the end of the year which would bring the value of the home loan market to approximately DH8 billion.
Sood added: “The increase in home finance transactions and the availability of home finance from different providers have contributed to today’s healthy market.
“It is important to remember that home finance in the UAE is still only a decade old, meaning enormous untapped potential still exists for the industry.”
The news come as good news for the UAE property market which has already shown signs of strength in comparison to the rest of the world which is still trying to recover from the financial crisis.