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Dubai Property Prices Down 42%
April 27, 2009Article by Ray Withers
Property prices in Dubai have collapsed by 42% in just six months, according to a recent survey.
Dubai property prices are now so bad no one can get a mortgage and property investors without funds have completely left the market leaving a few cash-rich speculators to pick over the bones of a once booming sector.
Off plan speculation, which was the basis of Dubai real estate investment is now gone – the few speculators left only want income generating property or homes that are nearly complete.Prices in other Gulf countries are slipping – oil-rich Abu Dhabi has seen 2O% knocked off home values in the past few months and the Saudi property market has had 25% lopped off property values.The survey, by Colliers International, also revealed residential rents in Dubai had dropped by up to 40% in past six months.
The problem in Dubai is now that banks refuse to lend because no one has any idea how much farther the prices will drop and lenders reject even the lowest loan-to-value deals.
Property in Dubai bonanza in recent years seems to have been mainly built on sand and many prestigious projects are now cancelled or mothballed – including big government funded developments.UK consultancy Property Frontiers, who have one current Dubai development on their books – The Cube that is intended to be one of the most upmarket hotel destinations in Dubai’s new sport city – five square kilometres of sporting playground with a Formula One circuit to modern stadia for athletics, cricket and football.
As The Cube is an off-plan project, Property Frontiers suggest you contact them to discuss the current state of the development before entering in to any agreements.