UAE mortgage market to grow 220 pct in next three years
25/8/2008 16:56
The mortgage market of the oil- rich United Arab Emirates (UAE) is
projected to grow 220 percent to 64 billion dirhams (US$17.44 billion) in the
next three years, local newspaper Gulf News reported today.
According to a
study by the Dubai-based real estate company Bonyan International Investment
Group, sharia-compliant house financing will make up more than 60 percent of the
figure.
The UAE is viewed 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, Bonyan
said.
"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," it
added.
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 or capital gains taxes.
The UAE has seen a boom in
its real estate sector since 2002, when Dubai, the UAE's commercial and
financial hub, gave foreign investors the green light to buy property on a
freehold basis.
The government of Dubai issued a 35-article mortgage law last
Tuesday in a bid to regulate the emirate's booming real estate
market.
Xinhua
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