Monday, Aug 25, 2008

Dubai: The UAE's mortgage market will leap from Dh20 billion by the end of this year to reach Dh64 billion over the next three years, according to a recent market study.

Real estate company Bonyan International Investment Group (Holding)Bonyan International Investment Group (Holding) said Sharia-compliant house financing will make up more than 60 per cent of the figure. In a press statement, BonyanBonyan noted the mortgage market in the Gulf Cooperation Council (GCC) has seen massive growth over the past year, as a result of the ongoing regional real estate boom.

The UAE is also perceived by global investors as the best market for capital gains growth, and has been identified as the only Gulf country to witness an increase in consumer confidence for the second half of this year.

"This can be attributed to the UAE's pioneering move to allow foreigners to invest in local property, which created outstanding opportunities for world-class developers to attract investors to the country," the company said.

Capital gains and income yields have been much higher in the UAE than most other international property markets, with investors acquiring investments with no personal income of capital gains taxes.

BonyanBonyan chairman Abdullah Atatreh said they aim to leverage the favourable investment climate in the country by expanding their portfolio of high-return and low-risk projects.

The company is currently undertaking regional projects and enhancing its full suite of integrated and research-based services as part of its goal to expand its project portfolio to Dh15 billion in three years.

To date, BonyanBonyan has developed Dh3 billion worth of residential and commercial developments in Dubai, including Rose Tower and Lulu Tower.

Among its latest successes is the sales turnout of the Dh3.5 billion Eye of Ajman community development, where it sold majority of its plots, and the recent sell out of its Dh5 billion Sama Al Jaddaf project.

By Staff Reporter

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