Dubai: The end of September spelled a record breaking year so far for the mortgage market in Dubai, as the total number of mortgage transactions registered year to date exceeded records for the same period over the past three years.
According to government data, Dubai had registered 68 per cent more mortgages than the same period in 2020 and 71 per cent more since 2019.
The previous quarter (Q3-2021) was a notably active period in the mortgage industry, as banks and other stakeholders involved in the mortgage process reopened for business allowing mortgage transactions that had been placed on hold during lockdown to proceed as normal again. Despite the post-lockdown spike in mortgage transactions experienced in Q3-2020, data from the government shows that Q3-2021 transactions have still exceeded this by 22 per cent.
Villas in high demand
Villa/townhouse properties accounted for 63 per cent of mortgage purchases, apartments made up 35 per cent and the remaining 2 per cent was attributed to land, commercial and other property types.
The most popular villa communities were Jumeirah Golf Estates, Arabian Ranches and The Springs.
Villas and townhouses have consistently been more popular over the past year, as they opt for bigger spaces with private gardens, pool areas and so on. This is a trend that has continued from 2020 following the lockdown.
As more buyers have entered the market this year the issue of supply in some prime communities has been widely documented, leading to property price increases, especially for villas/townhouses. Mortgage Finder has seen this increase in property prices translate into a 43 per cent jump on the average loan amount compared to September last year.
Author: Gulf News