Aldar teams up with banks to offer low interest rate home finance

The developer is offering mortgages at fixed rate of 1.99% and payment deferrals for up to six months

Aldar Properties reported Dh1.76 billion in revenue for the first quarter of 2020 despite the pandemic. Christopher Pike / The National

Aldar Properties is partnering with banks in Abu Dhabi to offer home finance at low interest rates at some of its developments in the capital.

The company, which is Abu Dhabi's biggest developer, is teaming up with Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank and First Abu Dhabi Bank to offer finance at a fixed rate of 1.99 per cent for three or five years with no application or valuation fees, Aldar said in a statement.

The offer, which is valid for 30 days, also includes three- to six-months' payment deferral when purchasing homes at developments including Yas Acres, The Bridges, Mamsha and Jawaher, according to the company.

“We remain confident and optimistic about the opportunities available within Abu Dhabi’s real estate market, and we look forward to a long and successful relationship with all of our customers for many years to come,” said Rashed Al Omaira, executive director – commercial at Aldar Properties.

Customers can also benefit from Abu Dhabi Municipality’s recent waiver of the 2 per cent property registration fees as well as a service charge waiver from Aldar for the first year, the company said.

“We are ... committed to finding new ways in which we can deliver more value to our communities – from enhancing the surrounding destinations, reducing service charges and improving service levels within the communities,” Mr Al Omaira said.

Aldar has also made virtual home tours available for its customers and is carrying out specialised disinfection services to ensure a safe handover of homes in the wake of the outbreak of coronavirus pandemic.

The Central Bank of the UAE has relaxed lending limits for mortgages in the wake of the coronavirus pandemic as part of a series of measures that includes a Dh256 billion stimulus injection into the economy.

Loan to value ratios were eased by 5 per cent, meaning the deposit required to buy a new home decreased to 20 per cent from 25 per cent for first time expatriate buyers, and to 15 per cent, from 20 per cent, for Emiratis.

Aldar last month announced its own Dh100 million commitment to support residents, customers and partners as part of Abu Dhabi's wider efforts to cushion the blow faced by the global economy due to the coronavirus. The company also set aside Dh4bn to ensure timely payment to its contractors and suppliers.

The overall economy and the real estate market are expected to face strong headwinds in the near term due to the coronavirus pandemic and low oil prices, consultancy Core recently said in a report.

“While the real impact is impossible to quantify and the recovery timeline unknowable, we are seeing demand drop drastically as most organisations adjust to social and travel restrictions,” Core said.

“Limitations to physically view properties and conduct businesses are leading to extended transaction timelines; however, we expect technology to be used to connect parties and reduce some of the barriers to execution.”

Aldar reported an 81 per cent surge in fourth quarter net profit on the back of higher revenues for 2019. Net profit attributable to shareholders for the period ending December 31, climbed to Dh577m, while revenue jumped 17 per cent to Dh2.1bn.