Report
Residential Mortgage
2012
Residential Mortgage Report
UAE Mortgage Market Snapshot (Full Year 2012)
| METRIC | Value |
|---|---|
| Total Property Transactions | 32500 |
| Total Property Transactions Value | 85.4 |
| Mortgage – backed Transactions | 7800 |
| Total Mortgage Value | 18.6 |
| Mortgage – Share of Property Sales | 21.9% |
| Ready Property Market Value | 52.3 |
| Mortgage Penetration – Ready Market (by Value) | 28.5% |
Untapped Financing Opportunity
Mortgaged Supply of 2012
| Category | METRIC | Value |
|---|---|---|
| Supply & Absorption | Total Units Supplied | 48000 |
| Units Sold | 32500 | |
| Absorption Rate (Sold vs Supplied) | 67.7% | |
| Transactions Activity | Total Transaction | 32500 |
| Market Value | Total Transaction Value | 85.4 |
| Mortgage Activity | Mortgage Cases | 7800 |
| Total Mortgage Finance Value | 18.6 | |
| Mortgage Penetration (by Value) | 21.8% |
Strong absorption on ready stock
Test insight: ready stock absorption near 68% in 2012 supported mortgage growth as buyers preferred completed units with clear titles.
End-user shift supports lending
Test insight: shift toward end-user demand improved loan eligibility and reduced speculative financing risk during 2012.
Cash dominance in off-plan
Test insight: off-plan remained largely cash-driven in 2012, leaving headroom for future mortgage product expansion.
Ready market anchors penetration
Test insight: ready market penetration near 28% by value shows banks focus on completed collateral for QA test purposes.
Mortgage Market Scale and Evolution Year on Year
Overall Mortgage Market Overview (2005-2012)
| METRIC | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 |
|---|---|---|---|---|---|---|---|---|
| Total Transactions | 12000 | 14500 | 18200 | 21500 | 16800 | 19400 | 25600 | 32500 |
| Total Transactions Value (AED bn) | 32.5 | 41.2 | 55.8 | 68.4 | 48.9 | 56.2 | 69.8 | 85.4 |
| Total Mortgage Transactions | 2100 | 2800 | 3600 | 4200 | 3100 | 4200 | 5900 | 7800 |
| Total Mortgage Value (AED bn) | 4.2 | 5.8 | 7.9 | 9.4 | 6.1 | 8.5 | 12.8 | 18.6 |
| % of All Property Sales ( by value ) | 12.9 | 14.1 | 14.2 | 13.7 | 12.5 | 15.1 | 18.3 | 21.8 |
UAE Mortgage Market Value Trend (AED BN)
Key Insights:
Mortgage split by property type
Mortgage Split by Property Type (Value Basis)
| PROPERTY TYPE | TOTAL VALUE (AED BN) | MORTGAGE VALUE (AED BN) | MORTGAGE SHARE (%) |
|---|---|---|---|
| Apartments | 38.5 | 9.2 | 24% |
| Serviced / Hotel Apartments | 6.4 | 1.1 | 17% |
| Villas | 32.8 | 7.2 | 22% |
| Villa Plots | 7.7 | 1.1 | 14% |
Value
Apartments
Serviced / Hotel Apartments
Villas
Villa Plots
Key Insights:
Price Based Segmentation
Mortgage Value Segmentation by Price Band (2012)
| SEGMENT | PRICE BAND (AED) | MORTGAGE VALUE (AED BN) | MARKET ROLE |
|---|---|---|---|
| Affordable | < 1 Mn | 2.1 | Entry point for end-users |
| Mid-Market | 1 - 2 Mn | 4.8 | Core end-user demand |
| Upper Mid-Market | 2 - 5 Mn | 6.5 | Strong investor and end-user mix |
| Luxury | 5 - 12 Mn | 3.2 | Prime owner-occupier demand |
| Ultra-Luxury (Emerging) | 12 - 20 Mn | 1.1 | Niche luxury financing |
| Ultra-Luxury (High-End) | 20 - 50 Mn | 0.6 | Limited mortgage use |
| Ultra-Prime | > 50 Mn | 0.3 | Mostly cash-driven |
Key Insights:
Affordable leads volume
Mid-market core strength
Luxury cash dominance
Ultra-prime niche
Key Inferences & Conclusions
Financing depth to drive next cycle
Sources: Public government data (Dubai Pulse) & Licensed market data (REIDIN)
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