Realty sector receives AED281.2 billion bank credit by H1
Bank financing provided to the UAE property and construction sector increased by AED 16.5 billion during H1 2017, up 6.2 per cent from the end of 2016.
Bank credit channelled to the sector reached AED281.2 billion by the end of June this year, accounting for 19.3 per cent of the AED1.45 trillion channelled to all business platforms in the country by the end of the first six months of the year, according to statistics provided by the UAE Central Bank.
Further statistics reveal that credit flows to the realty and construction market significantly grew in the period from January to June, with Q1 amounting to AED2.3 billion during Q1 and an increase to AED14.2 billion in Q2.
Property loans interest rates currently range from four to five per cent, while real estate market sit at between nine per cent to 12 per cent for investors. Hotel developments deliver the best returns, followed by retail projects then residential units, offices, and finally luxury homes targeting the high-income demographic, according to market analysts.