- Market recorded year-on-year increase in mortgage volumes by 51 percent and 46 percent in value
- Q1 2021 had the most mortgage registrations in a single quarter ever
Dubai: The mortgage market in Dubai experienced a record breaking year in 2021 as the total number of mortgage transactions registered with Dubai Land Department reached 19,520, exceeding the previous high recorded back in 2017 by 26 percent. Q1 2021 had the most mortgage registrations in a single quarter, with January being the strongest month of the year, recording 3,004 mortgage transactions with a value of AED 20.82 billion.
The market remained strong throughout the year with Q4 2021 recording 4,187 mortgage registrations - 10 percent more than the same period in 2020 and 21 percent more than 2019.
December, generally known as a quieter month within the mortgage industry, remained consistent compared to previous years recording only a 1.3% increase in mortgage registrations compared to 2020 and 3.8% compared to 2019. There were 1,178 mortgage registrations in December 2021, with a value of AED 10.08 billion.
The market has witnessed an impressive bounceback following the slump felt during the first half of 2020 when strict lockdown measures were implemented to tackle the pandemic. Since restrictions were lifted in Dubai, the market has been on an upward trajectory which continued throughout 2021.
To provide further context on the overall growth witnessed within the mortgage market in the past year it is worth comparing data with the pre-pandemic level of 2019. The number of mortgage transactions in 2021 were up by 57 percent compared to 2019.
“ The growth seen in 2021 can really be attributed to several factors which all aligned to make an impact on our industry; from the various large scale events which took place in the UAE, like Expo 2020, bringing more people into the country; to the major reform in loan-to-value ratios in 2020, which made buying more affordable for many; and finally the continued low interest rate environment.” said Mohamed Kaswani, Managing Director at Mortgage Finder.
In 2020, the UAE Central Bank reduced the down payment requirement for first-time buyers in the UAE by 5 percent, taking it to 20 percent for non-UAE nationals and 15 percent for nationals. The change in loan-to-value ratios made a real difference to some first-time buyers as data from Mortgage Finder, an independent mortgage consultancy and part of the Property Finder Group, showed that between Q1 - Q3 2021 83 percent of its mortgage transactions were for first-time buyers.
“The reduction in down payment requirements for first-time buyers, coupled with the general low rate environment made buying much more achievable for some people. With fixed rates available from as little as 1.99 percent and the leading rate sitting at just 2.39%, compared to 2019 where the leading product rate was 3.75%, buyers were able to take advantage of excellent mortgage offers to get onto the housing ladder.” Kaswani added.
About Mortgage Finder – www.mortgagefinder.ae
Mortgage Finder is the largest, independent mortgage consultancy in the UAE and part of the Property Finder Group. The Mortgage Finder team has decades of experience in international, residential and commercial lending.
Empaneled with every lender in the UAE, Mortgage Finder can access all home loan products in the market including exclusive rates and discounted products.
Mortgage Finder’s consultants take the time to understand the borrower’s needs to provide unbiased, professional advice to ensure they get the best mortgage product for their situation.
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