Posted Fri, 27/11/2009 - 00:44
Property News - Thursday 26th November 2009
Celebrities hit by Dubai property crash |
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Thursday 26th November 2009
While many people believe that the UK property market crash has been one of the worst on record, it pales into insignificance when compared to the ups and downs of the Dubai property market. It has been revealed that celebrities such as David Beckham and Brad Pitt have lost millions on their investments in the luxury Dubai development of Palm Jumeirah as the situation worsened today. In a situation which in many ways compares to the UK banking crisis of October and November last year, developer Nakheel, and its state-owned parent company, have requested a suspension of debt repayments in the short term. This is a sharp reminder that the worldwide credit crunch is not over and there are a number of areas around the world which are still "on the way down". This sudden announcement in Dubai will have an impact upon worldwide money markets and many overseas investors will be feeling the pinch after assuming that the worst was over. While this development in the Dubai will have no direct impact on the UK property market, it is a sharp reminder that nothing can be assumed in these very difficult times. Dubai was for many years one of the property hotbeds of the world although this is certainly not the case at the moment!
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Comments
by Anonymous - 28 Nov 2009 - 20:52
Such a great shame as the intention was to transform the economy of the little state, and invest some of the Oil Billions creating a high quality destination for the well off and a financial centre for the region. Of course it was not just local money that was invested.
As a result the British banking sector will suffer further, as it is estimated we are involved up to a disturbing £50b. For those brave enough the current depressed state of the housing market, may offer an opportunity as prices have fallen a whopping 40% since September. So for a few bargains are available. It may even fall lower still, and that is in fact certain until it hits a sweet price that encourages the clever money out of retirement.
Frankly I would have nothing to do with the Islands scheme as there are to many factors that could undermine the value of the homes on offer. Erosion will happen, most especially if the Islands are not maintained well and a tsunami would of course be a natural disaster of biblical implication. Is the region safe from such events? Don’t be silly of course it is not.
I suggest that any one interested in such property look carefully into the regions geological stability, but of course if the values fell to 25% even I would be interested in buying into the juvenile fantasy island concept.
by Anonymous - 7 Dec 2009 - 08:48
I would note that in many cases the investors are not yet in possession of anything at all. Many people have simply cut their loses and moved on. Leaving nothing but an empty promise behind.
However if you do indeed make an investment, and are careful to check it out in advance, then by all means buy soon as prices are unlikely to be depressed forever. Of course we all want a barging and chances are there is one here for those with a steady nerve, and a few pounds to put into property. Just be certain to buy an existing property not a plot of sand.
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by Anonymous - 6 Dec 2009 - 12:29
This arrogant sheiks fall much due much to his excessive risks and some bad advise from many of their high pays consultants. Billions of oil money has been enrich many in the process.And yet millions people on the streets will suffer for this for as many years to come.
The idea is quite novel but to build to this scare is a nonsense and disregards every economic theory and logic if not gamble and risks all.
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