Built to inform

Sign up for the daily newsletters

No, Thank you

Bank financing for UAE property increases 6.2% in H1 2017

Bank financing provided to the property and construction sector in the UAE increased by $4.4bn (AED16.5bn) during H1 2017, about 6.2% from the end of 2016

Bank financing provided to the property and construction sector in the UAE increased by $4.4bn
Bank financing provided to the property and construction sector in the UAE increased by $4.4bn

Bank financing provided to the property and construction sector in the UAE increased by $4.4bn (AED16.5bn) during H1 2017, about 6.2% from the end of 2016.

The total bank credit channelled to the sector by the end of June reached $77bn (AED281.2bn), with funding provided to the property and construction sector comprising 19.3% of the total credit transferred to all business platforms in the country, according to UAE Central Bank statistics.

Investment returns in the real estate market are currently between 9% to 12%, with hotel developments coming in on top in terms of returns for investors, followed by retail projects, residential units, offices, and high-end, luxury homes.

Credit flows to the realty and construction market significantly grew in the period from January through June, amounting to $626m (AED2.3bn) during Q1, and surging to $3.8bn (AED14.2bn) in Q2, the data revealed.

The value of property developments announced since the beginning of the year crossed the $8.1bn (AED30bn) mark, including service, developmental, and community projects across the UAE.

 

Most popular

Awards

New category open for consultancies at CW Awards 2019 in Dubai
Sub-Consultancy of the Year to be crowned for the first time at the gala ceremony

Conferences

Leaders UAE 2019: Pinsent Masons confirmed as Gold Sponsor
Law firm is among the major construction industry players confirmed as sponsors for Leaders UAE's
Leaders in Construction UAE Summit returns in Sept 2019
Dubai conference to see top officials discuss the people, trends, and challenges that will power

Latest Issue

Construction Week - Issue 746
Jul 20, 2019