Tuesday, August 25, 2009

Q2 mortgage loans fall 77% in Dubai


Source : Business Times – 25 Aug 2009

Research firm says financial crisis has curtailed credit from banks

Dubai mortgage lending fell 77 per cent in the second-quarter this year compared with a year earlier as the financial crisis curtailed credit, according to research firm REIDIN.com.

Second-quarter mortgage lending by 39 banks dropped to 8 billion dirhams (S$3.2 billion) from 35.2 billion dirhams a year earlier, REIDIN.com said in an e-mailed report. Mortgage lending rose 14 per cent from 7 billion dirhams in the first quarter, the firm reported.

Dubai, the second-biggest of seven states that make up the United Arab Emirates, has been hurt more than the others by the financial crisis as banks cut back on mortgages and speculators fled. The emirate within a year went from the fastest-rising of 46 markets monitored by the Knight Frank global house-price index to the second-biggest decliner after Latvia.

The banks registered 1,365 mortgages in Dubai in the second quarter. Abu Dhabi Commercial Bank PJSC, the third-biggest bank by assets in the federation, granted 1.86 billion dirhams in mortgages, according to REIDIN.com, which collaborated with Dubai’s Real-Estate Regulatory Authority and Dubai Land Department on the research.

Dubai Islamic Bank PJSC, a United Arab Emirates-based Islamic lender, extended 1.83 billion dirhams in mortgages in 151 transactions and National Bank of Dubai financed almost 1.1 billion dirhams in mortgages in 80 transactions.


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