Celebrities hit by Dubai property crash

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!