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Mortgage loans up 55pc to Dh65 billion in March

DUBAI - Mortgage loans in the UAE grew 55 per cent to Dh64.95 billion in the year to March from Dh41.86 billion a year ago while loans, advances and overdrafts reached Dh489.85 billion, a 38-per cent rise from Dh354.71 billion for the same period.

The figures were released by the UAE Central Bank on its website Thursday on selected monetary and banking and economic indicators which include tables on money and banking, national accounts, balance of payments and foreign trade and public finance.

The 55 per cent rise in mortgage loan in March was down from 90 per cent in December at Dh58.86 billion compared to Dh31.02 billion in December 2006. Mortgage loans rose 31 per cent to Dh58.86 billion in December 2007 from Dh31.02 billion a year earlier. The Central Bank also said in its 64-page Statistical Bulletin for January to March that the country's money supply (M1) for the year to March hit Dh221.86 billion while broad money (M2) reached 624.36 billion. M1 is the money in circulation plus monetary deposits in local currency with banks while M2 is M1 plus quasi-monetary deposits, which include time, savings and foreign-exchange deposits.

It added that the total broad money (M3) amounted to Dh754.58 billion, an 8.4-per cent rise from Dh696.23 billion in the same period in 2007. M3 consists of M2 plus government deposits.

Property prices in Dubai have surged since 2002, when foreigners were allowed to own real estate in selected areas, and due to rapid population growth at 110,000 per year.

The UAE-based investment bank Al Mal Capital earlier said that residential property prices jumped an annual 41 per cent in June from 40 per cent in May.

jose@khaleejtimes.com