Noor Islamic Bank (Noor) has rolled out attractive sharia compliant Home Finance solutions for off-plan properties to non-UAE residents across the region, as well as potential investors worldwide seeking a second home in the UAE or looking for rewarding investment options.

The service makes Noor the only bank in the UAE to offer financing options on off-plan projects, said a senior official.

Home finance is provided at a profit rate of 5.75 per cent for both purchases and buyouts of ready and off-plan properties. Under the scheme, potential investors that are residents of the GCC and most G20 countries can obtain finance for up to 65 per cent of the value on ready properties and 50 per cent on off-plan properties, with a maximum finance amount of up to Dh5 million.

Salaried individuals and self-employed professionals are both eligible to apply for the mortgages. However, salaried individuals have the option to take the finance for up to 25 years, while self-employed applicants have a shorter tenure of 20 years.

The profit margin is based on the Emirates Interbank Offered Rate (EIBOR) linked transparent pricing mechanism with fixed margins for the entire tenor. The EIBOR association ensures that pricing is free of bank intervention and based primarily on EIBOR variations.

John Chang, the head of Consumer Banking at Noor, said: "Introducing home financing options to non-UAE residents across the GCC region, as well as potential global investors, is already generating considerable interest. Customers based in India, Bahrain, Qatar and Saudi Arabia are close to finalising their property deals and mortgages with us."

“We offer potential investors an extensive list of projects and properties to choose from. We have seen particular interest in properties such as Polo Homes by Arabian Ranches, Jumeirah Golf Estates, and Palazzo Versace Dubai. We are confident Noor’s status as the first in the UAE to offer such financial solutions on off-plan properties will add further momentum to the UAE’s resurgent residential property sector,” he added.

According to a report from the Dubai Land Department, mortgages used for property purchases amounted to Dh51.3 billion, an increase of 67 per cent over the last year. This is allowing a broader community of investors to participate in the UAE property market, which in turn is expected to increase demand.

The report also suggested that with a surge in the number of residential units coming into the market in the next few years, attracting new investors would be vital to maintaining a healthy momentum in the property sector.

Another recent report by Jones Lang LaSalle revealed that some 45,000 residential units are expected to be delivered in Dubai by 2014.-TradeArabia News Service