Dubai lenders looking to attract overseas property buyers

Overseas real estate investors hoping to buy a property in Dubai may soon be offered a range of mortgage products from the country’s banks.

According to one industry source several lenders are keen to extend their products to non-residents in an effort to drum up further business.

Home loan financing for property in Dubai crashed as a result of the worldwide credit crisis this led to a catastrophic fall in real estate prices more than 60 per cent in some sectors and that in turn forced a couple of the United Arab Emirate’s largest mortgage providers to withdraw from the market for nearly two years.

Recent months has seen strength of confidence returning to the property market in Dubai and with a host of banks competing for business several lenders are considering new mortgage products designed to attract overseas property buyers.

The decision by government to extend three year visas to owners of property valued at AED1 million or above has helped to influence the decision by banks to widen their customer base.