Damac's mortgage unit provides $163m funding
DUBAI, March 20, 2017
Damac Properties, a leading luxury real estate developer in the region, said its in-house mortgage department has so far facilitated home financing worth Dh600 million ($163 million) for hundreds of units across the UAE.
It is the only luxury developer in the Middle East that boasts a dedicated in-house mortgage department, a one-stop-shop established in 2014 to provide direct support for existing and new customers.
This is done by evaluating customers’ current financial position and advising them on the most suitable mortgage products that fulfil their financial needs to buy a new property or finance their existing portfolio, it stated.
Niall McLoughlin, the senior VP, said: "As a leading real estate developer, we take on the responsibility of providing mortgage advisory services in order to offer attractive financing options to our customers."
"We deal with all UAE banks and mortgage lenders on completed as well as off-plan properties. From liaising with banks and the sales team on their behalf to obtain and review the bank proposals, to assisting in closing the mortgage deals, including the facilitation of all mortgage-related activities and correspondences, we take pride in closing the loop on our business dealings with our customers through this unique service," he added.
A recent report by Reidin/Global Capital Partners found that mortgages currently comprise 55 per cent of real estate sales activity in Dubai, more than doubling over the past seven years.
The finding indicates a maturing market in the emirate and a trend that is not far off, in terms of mortgage activity, from those of markets such as the US or UK, where mortgages account for 60 to 70 per cent of real estate transactions.
In 2012, the ratio of mortgages-to-sales activity in Dubai was below 20 percent.
Furthermore, unlike the past trend of mortgages being offered for projects by government-backed developers, 2016 revealed a paradigm shift towards more private developer projects accounting for mortgage activity than those of sovereign-backed industry peers, indicating an increasing willingness of banks to lend to private sector developments as well as confidence amongst buyers to purchase a property from a private developer.
Damac said its in-house mortgage department provides live and free assistance to customers by answering all their mortgage and banking-related inquiries, and trains the sales force to provide different mortgage solutions to the clients, allowing them to maximise or restructure their investment portfolio.
In addition, the department streamlines the business process internally and externally with banks and Dubai Land Department to ensure all transactions are registered successfully in accordance with the regulations, it stated.
In co-operation with banks, Damac organises joint mortgage events to present bundled product offerings that combine properties with suitable mortgage solutions, providing customers with instant approvals that determine their eligibility to mortgage loans, stated McLoughlin.
"Our tie-up with mortgage lenders to facilitate home loans not only offers preferential terms for end-users and off-plan buyers from resident as well as non-resident clients, but is also a booster for the UAE property market, where first-time millennial buyers who are salaried have ample opportunity to jump on the property ladder," he added.-TradeArabia News Service