Incredibly the first ever foreclosure sale in Dubai happened this week, as Barclays sold a villa at The Springs for $332,145, according to Arabian Business.Foreclosures weren’t legal in the emirate until 2008.
Following the Dubai crash in 2009, banks declined to sell repossessed homes because prices had plunged.
The beginning of foreclosure sales — another 200 are reportedly in the pipeline — is a sign of health for the market. However, it could also depress prices further.
Better Homes’ Tom Bunker tells Arabian Business: “If these properties are liquidated in an organised manner, there should be little effect on the prices of similar properties in the market,” he said. “However, if a large number of these properties reclaimed through foreclosures are re-inserted into the market all at the same time we could see another readjustment of certain property prices.”