Skip to content

Expat property owners in UAE unable to meet their next instalment

Some seven out of 10 told market research from Real Opinions that if they sold up now they would lose money.

Almost a quarter, 22%, bought off plan and still have further instalments to pay. Of these a quarter said it was unlikely that they would be able to make the next payment and many are worried about losing their jobs.

'Seven in 10 now believe they are in negative equity and this presents unprecedented and unexpected implications for these expatriate owners. It is especially a time for concern given the current finance options in the marketplace and laws relating to bad debts,' said chief executive Dan Healy.

'For those property investors finding themselves in negative equity, job security will be imperative in order to ride out this dip in the market,' he added.

The fact that so many property owners are saying that they don't think they can find the cash for their next payment is likely to present a serious headache for developers who need to funds to keep projects going.

'This could produce challenges for some developers requiring the capital to complete future stages,' explained Healy.

The researchers also asked how long people thought the economic crisis would last and most UAE expatriates replied that they believe it will take 18 months for the country to recover with most citing November 2010 as the end date.

However, responders did understand that this was a global crisis and that the grass might not actually been greener anywhere else, Healy revealed.

'There is still strong loyalty and the belief that the UAE will top the list of countries worldwide that will emerge quickly and economically stronger, matched by Saudi Arabia and followed closely by Qatar,' he said.