RAK Properties hails recent regulatory changes in UAE real estate sector
WAM RAS AL-KHAIMAH, 19th December, 2013 (WAM) -- RAK Properties, Ras Al-Khaimah's biggest property developer listed on Abu Dhabi Stock Exchange, has hailed the U.A.E. Central Bank's new mortgage rules, that come into effect from December across the U.A.E. as �a major step in the U.A.E. real estate sector's journey towards greater maturity.' The company said these rules would streamline the relationships between banks, financing companies, real estate developers and end-users, and make the processes more seamless.
RAK Properties added that these rules would further help end-users by offering them ready-made financial planning tools by default, as they comply with stipulated rules that are more relevant and in synchronisation with the demands of the real estate market, taking into account the rights of all stakeholders.
Mohammad Sultan Al Qadi, Managing Director and CEO, RAK Properties, said, "We anticipate that the new mortgage rules would go a long way in supporting the development of the real estate industry, fuelled by the current positive sentiment of the U.A.E. real estate and in line with Ras Al-Khaimah's vision for growth that is being strongly supported by RAK Properties as the biggest real estate company in the Emirate." He added, "The regulatory steps in the U.A.E. real estate sector reflect the progressive vision of the country to become one of the best countries in the world by 2021. We firmly believe that the U.A.E. is heading confidently towards this goal, which will benefit U.A.E. nationals, expatriates and investors, not only in the property sector but in all other fields." RAK Properties is working on diversifying its services and expanding its footprint. The company has raised the bar on the property sector and emerged as the leader in Northern Emirates in this field.
Al Qadi added that the U.A.E. property sector has reached a stage of maturity that qualifies it not only to meet current challenges but also introduce innovations that will ensure solid foundations.
By the virtue of the new rules, U.A.E. Nationals can get a maximum loan amount equivalent to 80% of property value (for a property with a value of less than AED 5 million). If the property value is worth more than AED 5 million, the loan amount will be capped at 70%. For second and subsequent properties, the maximum loan amount will be capped at 65%.
Expatriates can get a loan amount of up to 75% of the property value for their first property (valued at less than AED 5 million). If the property value is worth more than AED 5 million, it will be capped at 65% of the property value. For second and subsequent properties, expats can get a loan amount up to 60% of the property value.