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In denial—Buying property in Dubai “a dream come true”
Gulf News illustrates just how easy it is to take out a mortgage in Dubai, as if that was the only thing keeping most of us from buying property here.
August 8, 2011 3:43 by p.deleon
With the US being downgraded by S&P earlier this week, Kipp will be the first to say the future is looking ambiguous. We are not sure what the next few weeks will bring for the US economy, and by extension, the economy of the rest of the world. For one thing, many speculate that the UAE, with its dollar-peg and firm US-backing ways, is in for a tough time ahead.
And though Mohamed al-Tamimi, deputy executive director at the UAE central bank’s treasury department will tell you with much confidence: “We are pegged to the dollar and will keep it. We don’t see the dollar collapse. Because the problem is not in the US only, but also in the European markets. (…) But if the yields go higher to a justified level, there is no reason why we will not invest in US treasuries,” not everyone shares his confidence about the future of the UAE economy.
What with the rollercoaster ride of debt Dubai has been through, there is very little that can be said about Dubai with absolute certainty: except of course that it has one of the most volatile property sectors in the world. Not only do investors lack protection and representation here and the construction projects have been on a perennial pause but so too is the value of the property dropping. Kipp’s written countless articles upon articles highlighting this trend, which is why we were absolutely tickled when we read this article by Gulf News titled “We bought our homes, so can you.”
“Many people living in rented accommodation in Dubai are not enthusiastic about the prospect of buying a home—not because they are unaware that mortgages are now more easily available but simply because the entire process is thought of as lengthy and cumbersome” is the pearl of wisdom Gulf News chose to begin this article with.
Let us just stop you right there GN. The lack of interest in taking out a mortgage in Dubai isn’t just about misconceptions of ‘lengthy and cumbersome’ mortgage processing, nor is it because they lack awareness of the availability of mortgages. No, no. It simply isn’t that straightforward. There are so many layers to the demise of the UAE’s property sector that the account of two families happily shacking up in Dubai (kudos to them, of course) just isn’t…
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