The Dean

The floodgates are now open..........................

http://www.arabianbusiness.com/57840...on-dubai-homes

toughinthegulf

WOW! I like the line from Barclays "Barclays said the court’s decisions will renew lenders’ faith in Dubai’s legal system, “which could result in bigger lending mandates specifically for mortgage business.”

They mortgaged people that had almost no ability to repay in full (mostly speculators flipping properties) therby taking advantage of the poor credit rating system, and now praise the legal system for helping them out of a bad decission in the first place. Sound Familiar!

AppleMac

Maybe not - there was a guy from John Charcoal on the radio this morning and he pointed out that the courts do not have the capacity to handle more than a few cases a day - for floodgates to open then the court system would have to be expanded massively and I dont see that as a priority spending commitment at the moment given that contractors are threatening to stop work on the Metro and other infrastructure projects.

Jeeper

Yeah - but they love making people queue up.

Millhouse

and so the prices fall further...

AppleMac

If taken in isolation the yes - but if, as Barclays say, banks will start lending more as they see some way of recouping the debt should someone default and given the pent-up demand for mortgages that has not been filled in the last year, the effect might not be as pronounced as some think?

IndieG

How? The person buying the repossessed property would also need financing? All they have got is the asset but not the money....

The point is the big Dubai local banks are completely broke as none of their big borrowers are paying back. Forget principal repayments, their borrowers can't even service interest!