Although the Burj Dubai is now “finished,” we still have not seen an influx of tenants or investors, but this rather entertaining video of the windows being cleaned makes up wonder what is going on. Surely this is not a practical solution. Or is it? With labor being cheap and readily available. Not a job we would fancy though. Scary…..
Dubai property values have fallen (depending who you ask) between 50-70% from peak and at any other time, in any other market, this would almost certainly be signal to jump in with both feet. But – and this is a huge but – Dubai has probably got a long way to fall before bottom is reached, and our opinion is that we are nowhere near there yet.
Notice to the holders of the U.S.$3,520,000,000 Trust Certificates due 2009 (the “Certificates”) of Nakheel Development Limited ISIN XS0277553052
Unless otherwise defined in this Notice, terms shall have the meaning ascribed to them in the Declaration of Trust dated 14 December 2006 between Nakheel Development Limited (in its capacity as Issuer and Trustee) and Nakheel Holdings-1 LLC, Nakheel Holdings-2 LLC and Nakheel Holdings-3 LLC.
With the current limited supply of residential and commercial units in Abu Dhabi, Al Reem Island and Al Raha Beach come to ease the pressure between supply and demand.
The property market in Abu Dhabi has been the target of much focus since the global financial crisis hit the news. With Plan Abu Dhabi 2030, the government is keen on building up the emirate as a global financial centre by ushering investment into many of its sectors such as infrastructure, energy, education, and real estate amongst others. The aim is to expand the economy and move away from the dependence on oil revenue.
The Dubai property market is in a mess right now, but the implications for the small investor are unclear. Although Dubai is world famous for owning some massive real estate developments in Dubai such as the Dubai Palm Island projects, it has also built up a $100 billion portfolio of assets in international property around the world and if Dubai world defaults on her debts, as is seeming more likely, international creditors wilkk be looking at their overseas assest as a way to recoup some losses. The fact is – it is illegal for foreigners to own land in Dubai, so the offshore properties, which include Turnberry golf resort, and numerous other holdings, including P&O, the British based shipping company, are going to look far more attractive. Prime real estate in the U.K. is the more appealing target for creditors than the desolate, undeveloped patch of desert that was earmarked for the Waterfront project near Dubai.
More on Investing in Property in Dubai – What Do the Defaults Mean?
Following the announcement on November 25 from the Dubai Government, property developer Nakheel said Monday it has asked for three of its listed Islamic bonds, or sukuk, on Nasdaq Dubai to be suspended until it is in a position to inform the market more fully. “Following the announcement on Wednesday Nov. 25 from the government of Dubai, Nakheel has today asked for all three of their listed sukuk to be suspended until it is in a position to fully inform the market,” it said in a statement on the Nasdaq Dubai. Nakheel is one of two flag ship companies, along with Dubai World, which announced last week that they would seek a debt standstill agreement from creditors, until May 2010.
The ongoing financial crisis has hit Dubai hard and the rather silly approach being taken by the authorities is to pump out press release after press release claiming that there is not a problem. We have gone through phases with these press releases. First – there was no problem and Dubai was immune to the downturn. Then, Dubai was affected, but only slightly, next up – OK, Dubai has a problem, but we are now at bottom.
Yet another law suit in the offing as yet another UAE developer decides the small print means “no deal” on a “guaranteed” offer. It appears that the larger developers really do think small investors are good for one thing only. I have long been of the opinion that the shoddy treatment of smaller investors will backfire on the UAE as and when there is a turn around in the market.An investor in Ajman-based BSEL Infrastructure Realty’s Pearl Tower is seeking 12 per cent interest on his principal amount as assured by the developer under his buyback offer.
Or 9% !!!!!!!!!!!!!! or 30%!!!!!!!!!!
More bad news from Dubai. According the the Financial Times, Property prices in Dubai only jumped 7 percent in one quarter as “demand revived” and “lending conditions eased.” Quite who is expected to believe this sort of nonsense is beyond me.
Abu Dhabi, the capital and the second largest city in United Arab Emirates, has recently witnessed a series of rapid developments. The economy, which is mainly dependant on hydrocarbons for its economic wealth, has one of the highest GDP per capitas in the world. Abu Dhabi also has the largest share of oil reserves in the UAE; 95% of oil reserves and 92% of the gas. In order to diversify its economy, the UAE government has taken large steps to encourage oil revenue investments in manufacturing, tourism, agricultural and real estate industries to limit its dependence on the finite resource of oil.
