In 2021, end-users dominated the Dubai property market – Dh127.82 billion was a record for mortgage transactions, clearly indicating most buyers were buying homes to meet their own needs. In addition to the low-interest rates on home loans, the January to end March period proved to be the best quarter for mortgage-backed property sales in Dubai.
There were 127.82 billion Dh worth of mortgage deals in 2021, a 26 percent increase from 2017.
Also, developers played a role in getting buyers to take out mortgages last year. “The reduction in down payment requirements for first-time buyers – coupled with the generally low rate environment – made buying much more achievable.
Moreover, December showed homeowners were making strategic decisions ahead of the expected rise in mortgage rates starting in March (if the US Federal Reserve decides to hike rates and UAE regulator follows suit).
Within the mortgage industry, December is typically a “quieter” month. However, there were 1,178 mortgage registrations last month with a value of Dh10.08 billion.