Mortgage legislation, UAE

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The purchase of real estate in the UAE has turned into a true boom nowadays. Acquisition of real estate in this prosperous and developing country is mostly associated with three goals: buying a home for spending vacations, for permanent residence or for doing business.

Mortgage in Dubai remains a reliable way to fix the low cost of housing and secure savings by investing in an ever-growing market.

Banks in the UAE recently significantly stepped up in the issuance of mortgage loans.

Loans for mortgages in the UAE can be provided not only by local banks. It can also be done by large foreign credit institutions, which branches are represented in this state. It should be noted that the mortgage is provided on fairly conservative terms.

The Dubai Land Department (DLD) proposed to amend the mortgage legislation in order to attract new investments and introduce new financing mechanisms in the real estate sector.

This step is part of a strategy aimed at stimulating economic growth.

The proposed amendments must be approved by the Executive Council.

The main purpose of the innovations is to attract foreign investors and companies that place their shares on the NASDAQ exchange, encourage alternative financing methods and provide investors with the opportunity to diversify investment in real estate, breaking them into small and medium-sized portfolios.

“By changing mortgage legislation in Dubai, we help organizations working in real estate, coordinate intellectual resources and provide our clients with the highest level of services. These measures ultimately lead to GDP growth and the creation of a powerful inflow of investments, “said the Director-General of the Dubai Land Department Sultan Butti bin Mejren.

It is expected that such measures will strengthen the partnership between the public and private sectors, identify mechanisms for mortgage lending in the Dubai property market. All this will lead to increased confidence in the receipt of mortgages by the population.

A number of proposed initiatives are in line with the principles of strategy Dubai 2021, one of the tasks of which is to create a broad, transparent and safe investment environment for all investors.

Buying a property in Dubai, you can always be sure that even if you leave the country or lose the opportunity to pay on a loan, you can grant an apartment in Dubai on lease. Even for real estate in pledge it is quite appropriate option. Short-term rent in Dubai requires a special license. However, there is a way: real estate agencies will help you with it. As for the rental benefits, an annual rent in Dubai may reach up to 10% of the value of the property, which, with a good ratio, is beneficial both in terms of return on investment and in terms of self-repayment of a loan taken to purchase an apartment in Dubai.