Banks Financing Green Real Estate | Sharjah Sustainable City

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The local banking sector has started granting loans for environmentally friendly housing with competitive privileges and low interest rates, in a new direction towards what is known as “green real estate financing”.

Three banks in the local market are currently offering loans for environmentally friendly housing, with offers that include granting discounts of up to 0.25% on interest rates, and a reduction of up to half on costs and administrative fees, compared to traditional real estate.

According to a monitoring conducted by “Vision”, the banks of “Emirates NBD”, “HSBC” and “Ras Al Khaimah National” require obtaining accreditations or certificates of environmentally friendly buildings from various recognized bodies, such as the certificate of buildings approved by the Accreditation Institute. Green Buildings in the Emirates, and the Burjeel Program in Ras Al Khaimah.

The recent trend of local banks to the green financing arena for residential buildings is linked to the growth of green city and building projects in the country, while more banks are likely to witness the launch of competing products in this field, with an increase in demand by real estate developers, and with the green strategies adopted by the state.

Bankers reported that there is an increasing trend in the field of green financing solutions with the high rates of adoption of environmentally friendly solutions in the design of buildings, noting that more banks are seeking this type of financing, which will provide more options for customers.

3 banks provide financing for environmentally friendly properties 0.25% discount on interest rates

The local banking sector has begun granting loans for environmentally friendly housing with competitive privileges and low interest rates, in a new direction towards what is known as “green real estate financing”.

According to a monitoring conducted by “Vision”, the banks of “Emirates NBD”, “HSBC”, and “Ras Al Khaimah National” require obtaining approvals or certificates of environmentally friendly buildings from recognized bodies, such as the certificate of buildings approved by the Building Accreditation Institute. Green in the UAE, and the Burjeel program in Ras Al Khaimah.

Banking expert, Mohamed Amer, confirmed that there is an increasing trend in the field of green financing solutions, with high rates of adopting environmentally friendly solutions in building design.

He pointed out that the future holds more possibilities for offering such products to various financing parties, especially as customers’ choices will be wider when thinking about purchasing energy-saving and more environmentally friendly properties.

For his part, Executive Director of Sharjah Sustainable City, Yousef Al Mutawa, said that many banking agencies in the country support sustainable development by providing many facilities to customers wishing to invest in sustainable cities to bring about positive change. The housing and social needs of the growing population without negatively affecting the environment.

In turn, banking expert Ahmed Arafat stated that environmentally friendly real estate projects are new, and therefore to see two or three banks that provide special offers for this type of projects and housing is promising.

He pointed out that banks will adapt to the green urban movement in the coming years, pointing out that real estate companies and developers are currently expanding in building environmentally friendly cities.

Emirates NBD offers its customers the opportunity to obtain green home financing at a discount of 0.25%, while Ras Al Khaimah Bank offers real estate loans with variable interest, while HSBC offers a discount of 0.25% on its standard rates when Purchasing a home with a LEED certificate with a gold or platinum rating, as the discount is given with both fixed-interest home loans, and variable loans that are calculated according to the interest rate between the UAE banks for a period of three months, and customers of this product also benefit from a 50% discount on the applicable processing fees .

It takes an average of 60 minutes to apply for the initial approval, according to the bank, noting that when owning an eco-friendly home, customers will be able to save money through lower monthly operating costs.