A favorable business environment, tax incentives and the introduction of attractive residence permit schemes for investors fuel interest in this developed country.
The government is trying to stimulate the mortgage lending market during the crisis. Buyers, in turn, are rushing to seize the moment. The lion’s share of banks is ready to finance foreign investors.
True, the terms of credit for foreigners here is much stricter than for the locals. Foreigners are looking for the most beneficial options in terms of housing and choose property in Damac Hills in 2022.
Real estate loans in the UAE
From 2012 to 2014, after the global financial crisis, there was an increase in real estate prices in the Emirates. However, by the end of 2014 the trend had changed – the prices crawled down.
It seemed that a new pandemic crisis would only worsen the situation, but today the market is experiencing unprecedented excitement.
The main reasons for the demand for real estate were low prices and favorable mortgage terms. For example, housing in Dubai is still 36% cheaper than during the last peak in 2014.
The UAE government is trying to attract new residents and is constantly increasing the number of visa programs that allow you to move to the Emirates.
Investors and high-class specialists get “golden visas“. Digital nomads and foreign retirees apply for residence permits.
And in February 2021, the UAE government announced that selected investors and professionals will also be able to obtain citizenship. Immigrants also fuel demand for real estate and mortgage products.
Mortgage for foreigners
For citizens of the UAE provides a simplified procedure for obtaining loans. The main rules are the following:
- The size of the loan can be up to 85% of the property value.
- A foreigner, who has the status of a resident of the UAE, can expect to finance the bank up to 80% of the value of the object.
- The maximum loan amount depends on the type of property and wealth of the client.
- Non-residents are granted a loan of a maximum size of 50% of the value of the apartment or villa (in rare cases – 70%).
Banks’ requirements to borrowers
As a rule, banks have established strict rules on the income and credit reputation of the borrower.
- The borrower must be 21 years old at the time of signing the cooperation contract.
- The mortgage loans are only available to applicants under the retirement age limit (65 years). The closer the applicant to the limit of retirement age, the shorter the term of the loan and the higher the monthly payment.
- Some banks have a minimum salary requirement that the client must exceed AED 10-20 thousand ($2.7-5.5 thousand) per month. One of the main criteria when considering an application is the percentage of the applicant’s income and total financial obligations (Debt-to-borrow-ratio, DBR).
- A clean credit history will be needed when applying for financing. Banks tend to reject applications from clients with a bad reputation or no credit history. If the client has no loans, there is an option to purchase a credit card and pay off the debt on it faithfully before applying for a mortgage.
Requirements of banks for real estate
There the rules also connected with the characteristics of an appropriate house.
Foreigners can buy real estate in the UAE only in certain areas, called freehold areas. In 2006-2008, issued a series of regulations, which approved the list of free zones in Dubai, Umm Al Kuwait, Ras Al Khaimah and Ajman, and in 2019, freehold for foreigners became available in Abu Dhabi. Each financial institution in the country has its own list of properties on which it is allowed to make a mortgage.
When drawing up a loan agreement will need expertise of the property. The work is done by specially licensed appraisal companies.
Real estate for sale in Damac Hills
Different communities in Damac Hills offer different prices. Topanga Villas features 3-4-bedroom villas with variations ranging in size from 148 m2 to 337 m2 at AED 1,500,000, about $408,400.
Pelham offers villas ranging from 250 m2 to 759 m2 at AED 2,400,000. The Loreto sub-community consists of studios and one- to two-bedroom apartments, as well as several townhouses at 450,000 dirhams (about $122,500).
Real estate agency in Damac Hills
The professionals from Ax Capital are waiting for your visit on the website. The wide selection of stylish apartments and villas at reasonable prices is available for deep exploration.
Just adjust the settings and choose an appropriate variant. Do not hesitate to become an owner of an exclusive property in one of the most popular districts of Dubai.