The 1st public auction of reclaimed mortgage properties is anticipated to be held the month after next at the Dubai Land Department Offices. Despite numerous statements claiming that there were no foreclosures in Dubai,we reported on this phenomenon at the beginning of 2009, but with no laws in place and numerous hastily produced new laws – at last some repossessions will – maybe – come to market. Navigating strict Sharia laws against money lending with interest and “unusual” private property laws seems to have been the delay. As interest cannot be charged, and no one in the past having dared not to repay a loan, it will be interesting to see how this plays out.
Yet more property related laws to be introduced in Dubai
According to “The National,” a major Dubai newspaper, Dubai is expected to release yet another set of laws governing the property industry. There is a growing number of disputes between small property investors and developers in Dubai and prices continue to fall. This is what The National has to say:
The amount of property for sale in Dubai is now having a strong effect of rental yields. Unable to sell, many owners are putting their property on the market as a rental unit instead. This is having a marked effect on rents. RERA (The Real Estate Regulatory Authority) published its new guidelines, showing a 50% fall in rents in certain areas of Dubai and Landmark’s report this month shows a further 30% fall in Palm Jumeirah and recommends even cheaper rents than RERA’s. This is good news for prospective tenants, and suggests we still have some way to go before Dubai’s property crash bottoms out.
One thing about the global downturn that could be considered positive is the amount of scams and cons coming to light, and the small property investor has certainly been prey to many. In a booming economy, many of these were written off and the injured parties pleas for assistance were ignored.
More on Property Investing News – Fighting Back Against the Scammers and Con Artists
After months of press releases and government promises that there will be no such thing as a bubble in Dubai, the big boys of Dubai are finally saying, “Beam me up Scotty, I think I’m in trouble.”
More on Dubai Bubble Bursts – It’s official, but how far will it fall?
The volume of property sales in Dubai is poised to rise as more global investors enter the Gulf markets, said Blair Hagkull, MD of Jones Lang LaSalle, a real estate investment and advisory firm. Dubai is projected to record a 55.2% increase in property deals to hit $195 billion in 2008.
More on Investing in Property in Dubai – No shortage of new developments
