Crunch Time for Property Developers
by: Stebee
Total views: 4
Word Count: 428
The “credit crunch” is a popular phrase these days. In the United States, the sub-prime mortgage lending mess is greatly affecting both home buyers and sellers. What many may not realise is that these poisonous symptoms of the so called “meltdown” have spread like a virus to other countries as well, one of which is Dubai, the most populated city of the United Arab Emirates (UAE).
We’ll review the Dubai investment property market, more information on how it has been affected, together will looking at how the Dubai currency and other Dubai information is suggesting that this county is well positioned to weather the current global credit crisis. First, let’s look at the current Dubai investment property market. Dubai investment property has been, and continues to be, a very hot market for investors. In an article on http://www.aboutdubai.org, “investors expect almost a 30% or more return on nearly every property in the area.” This was the case in the United States around about 10 years ago.
Despite the negative influences of the “credit crunch,” the Dubai investment property market is still growing and investors are still enjoying healthy profits on their investments. Next, let’s explore areas where Dubai has been affected by the credit crisis. In one article on http://www.homesoverseas.co.uk, it states that “the Dubai property market isn’t immune to credit crunch, and fears continue to grow that Dubai’s property boom is fast running out of steam, as a consequence of the global liquidity crisis.” Critics do however, question the validity of the last statement, and they say Dubai’s real estate market is still enjoying strong growth. Despite any fears, the United Arab governemnt are taking measures to prevent what’s happening in the U.S. from happening in their own country. Despite signs of their housing market slowing, in an article on The Economic Times (http://economictimes.indiatimes.com), “Gulf Arab states are among the best positioned in the world to withstand the effects of the credit crisis.” While it is certain that financing such investments in the Middle East has become more difficult and expensive, particularly in the housing market, Dubai has mostly dodged all exposure to the toxic mortgage assets that the U.S. has been plagued with.
In conclusion, hopefully this gives you a fair assessment of effects of the current credit crunch on Dubai property and investment markets. Dubai information and statistics showing that it’s still a good place to invest in real estate terms verify that you can still make money there, which should be a relief for local investors.
About the Author
Similar to the recent economic bailout in the U.S., the United Arab Emirates central bank made the decision to set up an emergency lending fund of 50 Billion Dirhams (the Dubai currency) to strengthen the Dubai property market.
Get the HTML code for this article
Rating: Not yet rated