Dubai property crisis deepens

Dubai propertyCelebrities are not immune from the Dubai property crisis with big names such as footballer David Beckham and actor Brad Pitt thought to have lost large sums of money as their properties plummet in price.

Nakheel, the island’s developer, and it’s parent company Dubai World are said to have made a request to suspend debt repayments. The request demonstrates the problems in the Dubai property market as Dubai World were one of the key driving factors behind the property boom in the area in the last few years. They have now asked creditors to give them some leeway on the $59 billion loans they have.

Dubai World, and it’s children companies, accounts for most of Dubai’s debt. The cost of insuring Dubai’s debt has seen a massive increase in recent weeks as many people become skittish about Dubai property.

With one of the largest and most prestigious developers in trouble, there are concerns that some of the most well-known developments such as the Palm Jumeriah will stop work leaving many parts of Dubai as a massive construction site and possibly leaving many property investors out of pocket. People who are thought to have already purchased homes on the manmade island include Beckham, Pitt, footballers Andy Cole, Joe Cole, Kieron Dyer, David James and Michael Owen.

RSS Feed for This Post6 Comment(s)

  1. mark | Jan 12, 2010 | Reply

    Many less high profile and less wealthy investors have bought in Dubai and they are less abe to sustain the lossess they will incurr than professional footballers.

  2. cyprus | Jan 15, 2010 | Reply

    wow…the problem there in dubai just keeps getting bigger..

  3. cyprus | Jan 25, 2010 | Reply

    the problem just keeps getting worse there

  4. apartmentpaphos | Jan 27, 2010 | Reply

    you are so true mark..they just had losses instead of profits..

  5. Mark | Feb 13, 2010 | Reply

    the situation in UK is a lot better compared in dubai. investing in uk properties is indeed a good investment.

  6. RoseCherry29 | Jul 23, 2010 | Reply

    If you want to buy a house, you will have to get the personal loans. Moreover, my brother all the time utilizes a bank loan, which occurs to be really useful.

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