Property industry divided over mortgage rule | GulfNews.com
The real estate industry seems divided over the surprise move by the Central Bank on Sunday to tighten UAE property markets by capping mortgage loans at 50 per cent for expatriates. Those supporting the move believe it would scare away speculators. The rest believe the cap would dramatically slow down the industry’s recovery next year.
“The new circular, once implemented by banks in the UAE, would drive down demand for properties among end-users as they require a 50 per cent down payment. But it would also stop property prices from spiralling out of control which will be a positive factor for the economy,” said James Mathew, chairman of the Institute of Chartered Accountants of India, UAE Chapter.
Asked about the impact on the industry and whether it could deter developers from launching new projects in the future, a spokesperson at Emaar Properties said in an email to Gulf News: “The decision by the Central Bank regarding mortgage limits will contribute to strengthening the property sector by encouraging serious buyers to invest in the country’s property sector.”
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