Nexus Group, the largest financial advisory in the GCC, has launched a fully licensed mortgage entity, Nexus Mortgage Brokers. The new venture aims to complement Nexus’ core insurance and financial advisory businesses and capitalize on the UAE’s economic recovery and Dubai’s buoyant residential real estate market.
Nexus has partnered with leading banks in the UAE to offer resident and non-resident mortgages for properties in the UAE at fixed or variable interest rates. Nexus will also provide brokerage services to existing homeowners looking to refinance their home to free up equity and/or take advantage of more competitive interest rates.
Commenting on the announcement, Tarun Khanna, CEO of Nexus Group, said: “Above all, our new mortgage business complements our existing core insurance and financial advisory business.
“As a brokerage, we can save our clients time and effort by comparing the most suitable and competitive mortgages on the market, with no hidden fees or commissions. We can also guide our customers through the entire process, from initial inquiry to delivery.
“The mortgages we offer will be primarily geared towards UAE residents, but we will also have the ability to offer home loans to international investors looking to buy property in the UAE.”
Nexus’ strategic move comes at a time when the UAE’s economic recovery from the pandemic is beginning to gain momentum. According to the latest forecast from the UAE Central Bank, the UAE economy is expected to grow by 2.1% in 2021 and 4.2% in 2022.
Underlining this sentiment, business confidence in Dubai hit a seven-year high ahead of Expo 2020, according to the Dubai Chamber of Commerce and Industry and the Dubai Economic Department (DED). The emirate’s economic growth is expected to reach 3.1% in 2021 and 3.4% the following year.
“Proof of this is being played out in the UAE residential real estate market, which is showing solid and sustainable growth. The number and value of real estate and mortgage transactions in the first half of this year have collectively exceeded similar periods. over the past decade,” Khanna added.
Dubai and Abu Dhabi are the two most active real estate markets in the UAE. Half-yearly 2021 research data from a range of leading property consultancies including Chestertons revealed that a total of 27,373 deals were completed in Dubai in the first half of 2021, worth £62 billion. AED.
This is an increase of 34% and 55% in volume compared to H2 2020. Average transaction values also increased by 8.5% for secondary/ready-to-use properties and 15% for off-plan properties between H2 2020 and H1 2021.
Abu Dhabi followed suit. After a relatively strong first quarter of 2021, major developers reported notable off-plan demand for projects launched in the second quarter, with many developments selling out within days, illustrating renewed confidence in the residential market. The demand for ready-made villas and those intended for resale increased the average annual prices by 2.2%.
“While strategic direction, by definition and nature, is long-term, it is also an opportune and exciting time to launch our mortgage brokerage. Even though the real estate markets in Dubai and Abu Dhabi are the most active, we expect healthy demand from potential owners across the UAE,” Khanna added.
About Nexus Group
Based in Dubai, Nexus Group was established in 2006 following a management buyout of the distribution arm of Zurich International Life, which had operated in the region since 1989. Nexus now has offices in Abu Dhabi, Kuwait, Bahrain and Qatar.
The company employs over 350 fully qualified professional consultants and 150 support staff, offering a wide range of licensed products from regulated providers, such as life insurance, savings plans, company pensions and cover group medical, as well as various categories of commercial insurance, including employee benefits.
For media inquiries about Nexus Group, please contact:
Tel: +971 4 365 2711
Email: [email protected]
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© Press release 2021