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DUBAI / Emirates Business
The average size of a home loan taken out in the UAE in May 2019 was AED1.31 million, marking a steady incr-ease compared to an average loan size of AED1.67 million in May 2018, according to data from Mortgage Finder.
This is in line with the current market trend which has shown a downward shift in property prices over the past few years in the UAE.
“We have seen a shift from an investor-led market to an owner-occupied market, with more end-users buying to live in the property. This is likely due to the downward shift in prices which has made home ownership more affordable and achievable,†says Chris Schutrups, Managing Director, Mortgage Finder.
The mortgage consultancy, part of the Property Finder Group, has also seen enquiries go up by 59 percent between April 2018 and April 2019, and submissions (to banks for mortgage approvals) by 78 percent. With reference to interest rates, Mortgage Finder estimates that buyers prefer opting for a fixed rate in over 80 percent of enquiries. A fixed interest rate is an unchanging rate charged on a mortgage. It might apply during the entire term of the loan or for just part of the term.