Getting tough in the UAE
Real estate in the UAE is in need of a boost and many professionals within the industry are calling for some harsh measures to flush the system clean and to get the recovery underway. The recession has been a leveller and as banks, developers and borrowers have all suffered it appears to have softened the approach that lenders usual take, opting to negotiate with strapped debtors rather than repossessing.
Property in Dubai has been particularly susceptible to this approach where borrowers having obtained their loans are beginning to take advantage of the banks leniencies. There is a stagnation in the market as banks have become increasingly reluctant to lend knowing that profit from mortgage lending is hard to come by now. The key is a strict tone to wash out the system, to attract the right investor attitude and to effectively control the volume of latent distressed property which could come back to poison the market.
On top of this, an extension to the visa duration will also encourage and assist investors who are looking for property to buy in Dubai and Abu Dhabi.