Ajman Real Estate To Benefit From Easy Availability Of Property Finance

The Sweet Homes Holdings is a multi-service provider to real estate market and a UAE based developer. According to them the availability of mortgage financing, the Ajman property sector will be highly beneficial. The developer added that these mortgage schemes could boost the efforts that are being taken by the Ajman Government. The vital steps to regulate the property sector in the emirate are being continued through Ajman Real Estate Regulatory Authority (ARRA). Presently all the developments in the emirate that are being acquired through self-financing with the money are directly going to the developer, however, various uncertainties are being left behind in terms of financial security.

The CEO of Sweet Homes Holdings, Fahad Sattar Dero said: “The exemplary efforts of the Ajman Government to attract property investors has resulted in significant developments, which has put Ajman in a strategic position to overcome the challenges of the economic crisis. However, we believe that providing mortgage financing for investors who are looking at venturing into Ajman will further encourage investment activities in the market. We are optimistic that combining all these factors will result in greater stability for the Ajman property sector in 2009.”

The loan-to-value ratios are settling in the 70 to 85 percent range, thus the UAE mortgage market is stabilizing according to the banking experts. Several leading local banks have now revealed that they are lending upto 90 percent of the original price. Moreover, this is being done on selected real estate projects direct from the developers. While upto 80 percent of financing is being done on market value of selected projects on the resale market. The interest rates for some of the banks currently range between 8.3% and 10.6% which depends upon the LTV and customer’s profile. This mortgage financing has already been offered in Dubai and Abu Dhabi. Moreover, as the market becomes more end user driven it will hold much potential to boost the emirate’s real estate sector.