Mortgage provider Abu Dhabi Finance said it is in talks with several developers to provide financing of affordable homes in the capital, according to Emirates247. The company’s proposed product is designed to target consumers who earn a minimum salary of AED10,000, it said. The move comes after reports last week that property prices in Abu Dhabi were expected to rise this year as demand outstrips supply.
Commenting on the new mortgage, Chief Executive of Abu Dhabi Finance Chris Taylor said there is a major gap in the affordable housing segment with few options available to those who earn lower salaries. “The cost of housing, particularly rentals, remains high and affordable housing stock for sale is relatively low,” he said. He added that people are now able to own property similar to the ones they rent but at a lower cost, according to analysis by Abu Dhabi Finance. The company offers mortgages with a minimum salary requirement of AED20,000 covering properties in Abu Dhabi and Dubai. The financing costs between 1.81% to 2.99% flat rate.