Dubai lending up
Of all real estate in the UAE, property in Dubai has probably suffered the most given its meteoric fall from orbit and until recently, the glut of excess property and the banks restrictive lending practises has meant a bleak outlook for the emirate. At the peak of the market, Dubai stood as an example of excess and some may say it got what it deserved, now standing as merely an example.
However, things could be changing for Dubai as a recent Government backed hand out for Nakheel is now being earmarked to help the company finish off nearly completed projects, without the need to renegotiate with some of its creditors. Additionally, investors keen on buying property in Dubai are increasingly referring to the banks and official figures reveal that this first quarter has seen a positive rise in mortgage lending volumes.
The increase this year is around 75% up on 2009 and many put this down to an easing of lending criteria by the banks. For example, LTV have increased from around 70% in 2009 to 85% in 2010 and reduced mortgage rates are also now beginning to boost the market once again.