All Posts Tagged With: "Dubai Property"

Dubai Property Prices Fall

Dubai real estateProperty investment in Dubai remains a risky prospect in the short-term with residential prices falling by nearly four percent in the first six weeks of 2015. All types of property, including villas and apartments, have seen their prices fall although average villa prices have fallen less than apartment prices.

Rental prices are remaining around the same price meaning rental yields are actually increasing.

However it property prices are not expected to increase in the short-term meaning anyone looking to buy property in Dubai must be looking to the long-term market.

The Rise And Fall…and Rise Of Dubai’s Property Market?

Dubai real estateIn the early 2000’s, Dubai was able to establish itself at the forefront of world real estate investment as ex-pats flocked to the rapidly expanding, tax free haven in the United Arab Emirates. But like all bubbles it was to eventually burst. After floating on a healthy breeze of consumer demand, the wind changed after the global economic disaster of 2008 and only now are the green shoots of recovery peeping through.

Dubai World gets $9.5 billion state bailout

Dubai World have unveiled a restructuring plan which will see the group repay 100 percent of its $23.5 biliion debts through debt-for-equity swaps and new government funding.

The Dubai Government will be putting $9.5 billion itno new funding into the state owned conglomerate. Of this, $5.7 billion remains from loans from Dubai’s neighbour Abu Dhabi. The rest will be funded by the Dubai Government.

With the remaining $14.2 billion debt, Dubai World has proposed converting $8.9 billion into equity. The remainder will be repaid using two new lots of debt maturing after five and eight years respectively. The government will then provide $1.5 billion for working capital and to help cover interest payments.

World Islands Development Falling Into Disrepair?

It was one of the World’s most highly-anticipated and talked about building projects when it was first announced, but the World Islands Developments looks like it is starting to fall into disrepair.

The World Islands Developments was a massive project planned to sit in the shallow waters just off Dubai’s coast near the highly-hyped Palm Jumeirah. When it was first launched in 2003, the Press were quick to cotton onto the idea and the super-rich and celebrities were anticipated to flock to buy islands of their own. 11 billion cubic feet of sand and 47 million tonnes of rock later and the foundations for the islands were complete.

The tallest building in the world opens in Dubai

The tallest building in the world opens in Dubai for business this week. The Burj Dubai is at least 2,683 feet from base to tip – over half a mile high and more than 1,000 feet higher than it’s nearest rival, the Taipei 101.

The steel-ribbed, glass-clad structure also boasts the highest swimming pool in the world which is based on the 76th floor. There are plans for the world’s highest place of worship with a mosque on the 158th floor.

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 Developers Struggle To Pay Bills

DubaiForeign construction firms have revealed that they are owed billions in unpaid invoices from Dubai property firms.

Some Japanese companies have said that they are owed so much money that they are starting to struggle. According to Otsuka, an Abu Dhabi based newspaper, among those companies affected are Mitsubishi Heavy Industries Ltd and Taisei Corp.

Dubai property development firms have struggled in recent months after the global economy took a beating, helping cause the property bubble in Dubai to burst. The Dubai property market has seen mortgage lending slump, property prices slump up to 50 percent in some areas, and a lack of people looking to buy.