The Trend is Good for the Dubai Real Estate Market

CB Richard Ellis GroupThe trend towards more repossessions and foreclosures is good for the Dubai real estate market, at least per CB Richard Ellis’ regional consultant director.

In a March 31, 2010, article on ArabianBusiness.com, Nicholas Maclean said this trend “has to come because people, I think, have borrowed with a view that they’re immune to any further action – like the situation with credit cards where people run up debt and then skip the country – that’s bad for banks, and bad for the country.”

How will forcing borrowers into court restore stability in the market? In other countries like the USA, the foreclosure crisis led to tighter credit restrictions for borrowers, impeding writing new RE loans. In Dubai, new loans are needed to increase liquidity in the RE market. A good side effect is that investors can find good deals on Dubai foreclosed properties, both residential and commercial.