Event though the economic crisis has come to an end but the expert economists around the world say that there might be a little or no economic growth in the first quarter of the year 2010 for most economies in the world. Experts also analyze that there could be a short fall in finances and the financial regulators and treasury departments of major economies are not yet prepared for that. The commercial property sector is the one to bear the affect if financial short fall occurs. Keeping in mind that the situation of banks in UAE are a bit cautious in lending the commercial property. However, due to low commercial property rates the banks are being forced to lend the commercial real estates at low rates but the banks are well aware of risks which can exist due to this.

This is precisely why they are trying to play safe in the industry. If they lend a lot of commercial property on low rates there could a problem for them in future. If the financial shortfall occurs again the banks will be unable to get the payment from their properties. Whereas, if the property rates show continuous improvement the banks will be unable to make profit as they will have already leased out all the properties at lower rates. The banks are slowly getting into the process of leasing the commercial properties and are playing safe by continuously keeping an eye on the growth and demand of this sector to get benefit out of it.

All the banks and mortgage lenders of UAE are following a simple and safe strategy for lending commercial properties. They are lending the properties to the businesses which are well established and have shown decent profit over the years. They are not lending commercial properties to the new businesses and to those which showed remarkable losses in past years. Businesses all around the world are interested in getting a commercial property on lease in UAE as the rates have collapsed. But the government of UAE and the banks are playing safe to survive through any uncertain situation in future. It will be quite interesting to see whether this cautiousness of banks and lenders in UAE about lending commercial properties is a good decision or bad.