In Dubai, the sale of "debt" villas began

In Dubai, the first Villa seized for debts left the hammer. According to analysts, this suggests that liquidity is returned to the mortgage lending sector. However, the mass entry of "debt" objects can collapse of real estate prices in Dubai, writes Prian.ru with reference to the Arabian Business .

The first sale of "debt" real estate through the auction organized by the Dubai land department was held by Barclays. At first, the lender asked for 326 thousand dollars for the villa, but ultimately he was able to sell his property for 332 thousand dollars.

Back in 2008, a law was introduced in Dubai, according to which banks could begin alienation of real estate in the event that "problematic" creditwriters did not resume mortgage payments within 30 days.

Barclays Bank was the first credit institution, which in January 2010 began the process of withdrawal of the mortgaged property. This precedent opened the road to other banks that have mortgage loans in their balance sheet in the amount of about $ 16 billion. Now about 200 cases of the alienation of the mortgaged property are being considered in the courts of Dubai.

The managing director of CB Richard Ellis Nick McClin notes that a reduction in risks for creditors who now know about the possibility of returning their money will make a mortgage more affordable for potential buyers. “Banks will more willingly enter the market when they have more chances to return their capital if something goes wrong,” the expert adds.

Meanwhile, other analysts warn of the possible negative impact of the mass sale of houses seized for the debts on the already weak Dubai real estate market.

Investment consultant of the Better Homes Real Estate, Tom Banter believes that if the “debt” real estate is realized in small quantities, the influence exerted on the value of similar objects will be insignificant. "If the numerous" debt "objects fill the market, we will see another adjustment of real estate prices," the analyst emphasizes.