Ras Al Khaimah, UAE, 20th December 2013: RAK Properties, Ras Al Khaimah’s biggest property developer listed on Abu Dhabi Stock Exchange, has hailed UAE Central Bank’s new mortgage rules, that come into effect from December across the UAE, as ‘a major step in the UAE 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 the stipulated rules that are more relevant and in sync with the demands of the real estate market and take 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 UAE 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 UAE Real estate sector reflect the progression vision of the country to become one of the best countries in the world by 2021. We firmly believe that the UAE is heading confidently towards this goal, which will benefit UAE 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 UAE 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, UAE Nationals can get maximum loan amount equivalent to 80% of property value (for a property with a value of less than AED 5 million). If property value is worth more than 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 (of less than AED 5 million). If 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.
RAK Properties, a Public Joint Stock Company listed on the Abu Dhabi Securities Market, is a real estate development company established to implement the emirate’s plans to promote real estate, tourism and leisure facilities in RAK and invest in interesting projects. It is intended that its activities will encourage economic growth in the UAE in general and Ras Al Khaimah in particular. The company launched its first project, Julfar Towers – a 45-storied twin office and residential project at a cost of AED 500 million – in February 2006 followed by Mina Al Arab – spread over 43 million sq. feet at a cost of AED 10 Billion – in May 2006. It also launched RAK Tower in Abu Dhabi at Cityscape Dubai.