Loathe to loan in Dubai banks

The recent proactive input made by the federal government into the banking sector needs to be extended to real estate in the UAE, according to Shuaa Capitals chief economist.

With a fall of 50% in value of property in Dubai & across the region, and the massive over supply of property, one could imagine that it shouldn’t be too difficult to find a suitable property for the right price, nor to raise the capital to buy it.

This however, is the very problem, as having had their fingers burnt banks are now exercising extremely restrictive lending practises to expatriates. In Dubai about 70% of the population is made up of an expatriate work force.

The net result is a stagnating market place which beleaguers any hope of recovery. The market itself is seen as being pretty much at rock bottom as far as property values are concerned, the advantage here will be for the investor capable of raising capital away from the banks.

The cash buyer looking for property to buy in Dubai, will have the upper hand, and even more value for money may be squeezed from the stony market place.