Dubai’s real estate stocks fell, led by Emaar Properties PJSC (EMAAR) after the United Arab Emirates was said to have capped mortgages for expatriates, prompting concern a recovery in the property industry may be at risk.
Shares of the developer of the world’s tallest skyscraper dropped 1.1 percent, the first decline since Dec. 25, to 3.77 dirhams, at 10:30 a.m. in the emirate, trimming this year’s rally to 47 percent. The stock led a drop in the benchmark DFM General Index, which slipped 0.4 percent. Builder Arabtec Holding Co. (ARTC) and property companies Drake & Scull International (DSI) PJSC and Deyaar Development (DEYAAR) PJSC also fell.
The second-biggest Arab economy issued guidelines to restrict mortgages for expatriates to 50 percent of property value, according to three bankers who saw a circular issued yesterday. Home loans to U.A.E. citizens can be as much 70 percent of the value of the property for the first house and 60 percent for a second house, two of the bankers said. The bankers declined to be identified because the information isn’t public yet. There were no loan-to-value limits under the earlier policies.
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