The United Arab Emirates plans to restrict mortgages for foreigners to 50 percent of the property’s value, threatening to derail a nascent recovery in Dubai home prices after more than three years of declines.
U.A.E. citizens can get as much 70 percent of the value of a first house and 60 percent for a second, according to guidelines issued by the central bank and obtained by Bloomberg News. Foreigners can get mortgages of as much as 40 percent of the value of a second property, according to the document. The central bank’s public relations department declined to comment when contacted by Bloomberg News today.