In the UAE, the home of tomorrow is transparent

The mortgage map launched by Pecunia.me and The National is an important first step in empowering consumers with information, and thereby making the market more robust.

Screen grab of the Pecunia mortgage map.

UAE property has been recovering in recent years and to a large degree that rebound has been driven by the rapid influx of both people and money from the broader region in a time of political turmoil.

As a result, the market is looking in a stronger position and is likely to continue to be in a strengthened position in the foreseeable future, although there are concerns of overheating.

Some 80 per cent of property deals in the first half of this year were cash transactions according to Dubai Land Department data, which indicates a risk of speculation. It is important to allow more investors be able to participate in the opportunity to invest, and as such mortgages plays a key part.

The credit for mortgages is rapidly increasing. According to a July report from the Dubai Land Department, mortgages used for property purchases amounted to Dh51.3 billion, an increase of 67 per cent from the year before. This is allowing a broader community of investors to participate in the UAE property market, which in effect will increase demand, which is required with the large degree of residential units coming into market in the next few years. According to a recent report by Jones Lang LaSalle, 45,000 residential units are expected to be delivered in Dubai by 2014.

Historically there has been a large variety of mortgages provided, and many consumers have expressed concerns over the sometime painful process of getting access to the funding. These are two challenges which need to be overcome to fully unleash the potential for additional investors to participate in the market.

Pecunia.me and the mortgage map tackle these challenges head on. In partnership with The National, the mortgage map is creating transparency in the mortgage market by allowing users to crowd-source their mortgage information onto a Google Map-based technology.

The increased transparency is likely to lead to better conditions for consumers, and to entice more people to take the leap of investing in property. More importantly, the mortgage map will reduce the frustration and worry about what rates are achievable on your mortgage by allowing you to see competitive rates and conditions in the market.

Beyond this, the Pecunia.me is improving access to mortgages by letting potential mortgage customers easily connect with banks through the Pecunia.me fast-track which allows users to obtain a pre-approval from a bank 24 hours after they have provided the required documents.

Pecunia.me and The National are committed to improving transparency, and thereby generating and supporting the real estate sector by increasing the investor base. The cornerstone of the campaign is transparency and financial literacy, with the user experience at the forefront. Together we are seeking to improve the customer experience for the future investor base of residential properties in the UAE.

Peder Wessel is a director of Pecunia