(MENAFN- Khaleej Times) ADFs average commercial loan size is now Dh1.8 million indicating an increased appetite among the small business sector for commercial mortgages.
Abu Dhabi - Abu Dhabi Finance has seen a 60 per cent year-on-year increase in its commercial mortgage business in the first quarter of the year.
This growth has come from an increase in the number of SMEs buying commercial premises. ADF’s average commercial loan size is now Dh1.8 million indicating an increased appetite among the small business sector for commercial mortgages said Chris Taylor CEO of ADF.
Taylor said that historically SMEs have faced challenges when it comes to obtaining finance for commercial units not least because the commercial mortgage space in comparison to the residential mortgage space is under-served by lenders.
But with commercial rents for prime office spaces increasing and interest rates remaining low commercial mortgages are becoming attractive for SMEs he said. For many small businesses buying office space instead of leasing presents a more attractive proposition particularly with a fixed-term mortgage.
In 2014 ADF has seen a large increase in the demand for its ‘Anchor’ Commercial Mortgage he added.
“SMEs are the engines for economic growth and a vital contributor to the UAE’s non-oil GDP. So it is an encouraging sign that the commercial property market is beginning to open up and mature with more and more SMEs buying property “ the chief executive said. -
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.