First repossessed home sold in Dubai

Tuesday, May 31, 2011

First repossessed home sold in Dubai

Barclays Bank has confirmed the sale of its first repossessed home in Dubai suggesting that many more repossessed properties in the emirate could be sold in the coming months.

The release of more repossessed homes could place further downward pressure on Dubai property prices creating plenty more bargains in the process.

Property prices in Dubai have already plummeted by up to 60 per cent since the market peak of late 2008.

Barclays sold the repossessed property at an auction held by the Dubai Land Department. The villa in The Springs sold for AED1.22 million (£200,000), which was close to the reserve price.

A repossession law was introduced three years ago allowing Dubai mortgage lenders to repossess a home in Dubai. But any attempts to off load homes at auction had proved unsuccessful, due tolow success rates, but things could be about to change.

Nick MacLean, managing director of CB Richard Ellis, said: 'There are quite a lot of properties that have come back to the lenders over the last couple of years and they have essentially retained them. The fact that a lender is disposing successfully of properties is sort of indicative of some strength coming back to the marketplace.”

Barclays Bank has confirmed the sale of its first repossessed home in Dubai suggesting that many more repossessed properties in the emirate could be sold in the coming months.

The release of more repossessed homes could place further downward pressure on Dubai property prices creating plenty more bargains in the process.

Property prices in Dubai have already plummeted by up to 60 per cent since the market peak of late 2008.

Barclays sold the repossessed property at an auction held by the Dubai Land Department. The villa in The Springs sold for AED1.22 million (£200,000), which was close to the reserve price.

A repossession law was introduced three years ago allowing Dubai mortgage lenders to repossess a home in Dubai. But any attempts to off load homes at auction had proved unsuccessful, due tolow success rates, but things could be about to change.

Nick MacLean, managing director of CB Richard Ellis, said: 'There are quite a lot of properties that have come back to the lenders over the last couple of years and they have essentially retained them. The fact that a lender is disposing successfully of properties is sort of indicative of some strength coming back to the marketplace.”

Read our guide to buying a property in Dubai or search properties for sale in Dubai.

Author

A Place In The Sun