Positive signs for property market

[LRE]

Gulf News
Published: June 10, 2009, 23:17


It is too early to say that reports from financial institutions of a strengthening of property prices in parts of the UAE mark an end to the volatility that has rocked the market in recent months. However, they are a clear indication that consumer and investor confidence - factors which drive the property market - are picking up.

The reports also make it known that corporations and governments in the UAE have been able to raise money on the local and international bond markets. This means financial institutions are starting to lend money again, which will allow companies and governments to invest in development projects.

The up-tick in home sales also indicates that fin-ancial institutions are beginning to lend money to consumers who meet their criteria, as they become more responsible in the way they extend credit. It is too early to be sure about the future of the property market in the short term, but the signs look good.

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