The latest report from consultancy Jones Lang LaSalle about the Dubai property market is predictably bleak for the short term and sees a recovery coming by 2011 "at the earliest."
The good news is that prices have largely stabilised. And the firm notes that the value of mortgages as a percentage of sales is on the rise, "reflecting easier access to home financing."
But look more closely...
...and you'll see that while the mortgage percentage climbed from 33% in Q1 2009 to 46% in Q4 2009, it fell down again to 39% in the Q1 2010. The firm says the drop may be due to "incomplete registered transactional data." Those who have a stake in the Dubai property market better hope that is the case.
In Abu Dhabi, property brokers say mortgages are widely available to qualified buyers, thanks in part to Abu Dhabi Finance's active role in the market. Dubai needs banks there to resume lending or else supply will remain inflated and a return to a healthy, normal property market will be delayed yet again.
(Photo credit: Courtesy of Nakheel)