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UAE mortgage market boosted by overseas investors

Non-residents from the GCC, UK, US, Germany, and India are increasingly opting for home loans in the UAE, constituting between 35% to 40% of overall mortgage bookings

UAE mortgage market boosted by overseas investors

The UAE mortgage sector is seeing a rise in interest from overseas and non-resident investors, with up to 40 per cent of mortgage bookings being made by non-residents. Overseas investors are playing a major role in driving the UAE mortgage market, according to Money Maestro.

With mortgage financers offering loans of as much as $21.8 million (AED 80 million) and interest rates as low as 4.99 per cent, there is considerable demand said the financial brokerage expert.

The UAE’s mortgage market is experiencing a transformative surge, driven by the substantial interest from non-residents.

Constituting between 35 per cent to 40 per cent of overall mortgage bookings, non-residents, hailing primarily from the GCC, UK, US, Germany, and India, are increasingly opting for home loans in the UAE, signalling the country’s appeal as a global investment destination.

In recent years, the UAE has solidified its position as a location for international investors and expatriates seeking lucrative opportunities in real estate.

With its dynamic economy, world-class infrastructure, and cosmopolitan lifestyle, the UAE attracts individuals from diverse backgrounds looking to invest in property.

Rajender Prasad, Managing Director of Money Maestro, says, “Non-residents can now easily secure mortgages in the UAE, providing them with an opportunity to invest in the vibrant real estate market of the country.

“Eligibility criteria vary from bank to bank, with some requiring a minimum post-tax salary equivalent to AED 25,000, while others may consider factors such as average credit balances in personal accounts or even global net worth statements.

“For salaried individuals, identification papers, proof of employment, and bank statements are typically required, while self-employed applicants may need to provide company financial performance reports.”

According to Prasad, the Loan-to-Value (LTV) ratio ranges from 60 per cent to 70 per cent on a case-to-case basis, with interest rates starting as low as 4.99 per cent and going up to 6.49 per cent, depending on the bank.

The maximum tenure applicable is 25 years, with the loan maturity capped at the age of 65 years.

Banks in the UAE offer varying maximum loan amounts, with some extending financing of up to $21.8 million (AED 80 million).

Institutions such as HSBC, CBD, DIB, Mashreq, and Emirates Islamic, among others, are at the forefront of offering mortgage solutions to non-residents.

As the UAE continues to attract global talent and investments, the accessibility of mortgage options for non-residents underscores the country’s commitment to fostering a conducive environment for international investors and expatriates.