According to one of the reports from the housing industry, owing to the easy availability of credits from the banks, the total value of mortgages issued in Dubai, in the first quarter, increased by 14.3 per cent to Dh8 billion, from Dh7 billion.

The online real estate information company, REIDIN. com, in its report further mentioned that the mortgage rates in the United Arab Emirates are declining with the changes in market conditions, and there is a positive response from the buyers and end-users.

This study was conducted jointly by the Dubai Land Department and Real Estate Regulatory Authority, a property regulator of the Government.

The property market of Dubai was seriously affected by the global economic downturn; but confidence is being restored once again with the pick-up in the markets of US and Britain.

During the second quarter the value of mortgages issued in Dubai declined by 77 per cent, when compared with the second quarter of 2008, because of the credit crunch faced by the banks in the country.

In the second quarter this year, the total value of mortgages fell to Dh8 billion as compared to the value of Dh35.2 billion last year.

Colliers International, a real estate consultant, said that by the fourth quarter the house prices in Dubai shall due to improvements in the global property markets.

According to the real estate advisory, Jones Lang LaSalle, the property prices in Dubai dropped steeply 49 per cent.

REIDIN. com mentioned that during the second quarter 39 banks recorded 1,365 mortgages in Dubai. While Abu Dhabi Commercial Bank extended 91 mortgages worth Dh1.86 billion in a period of three months, Dubai Islamic Bank registered nearly Dh1.83 billion in 151 transactions, and the National Bank of Dubai made available finances worth more than Dh1.07 billion in 80 transactions.