Record mortgage lending volumes of $34 billion show that most buyers are looking for housing for their needs, not investments.
The first mortgage payments, reduced by 5%, and low fixed interest rates are the main force attracting many ordinary property consumers to the emirate. Many of them purchase real estate in the country for the first time.
The lowest mortgage interest rates reach 1.99%, and the most popular rate is 2.39%. For example, in 2019, the mortgage interest rate was 3.75%.
In the fourth quarter of 2021, there was information about a possible increase in mortgage rates across the UAE if the US Federal Reserve decided to raise its interest rates and the UAE Central Bank followed suit.
Last December, there was high annual growth in loans, as many ordinary consumers rushed to borrow money at record low-interest rates.
In December, there were 1,178 mortgage loans with a total value of $2.74 billion.
