Dubai properties Sama Dubai and Tatweer merge

Dubai Properties, Sama Dubai and Tatweer have merged in an attempt to lessen the impact of the financial crisis. Dubai holding now consists of just 4 divisions instead of the previous 7 – investments, hospitality, property and business parks. there is also talk of merging Emaar properties into this new vehicle.

In  July, Moody’s  downgraded the ratings of Dubai Holding Commercial Operations Group to A3 from A2 and placed the ratings on review  to reflect the continued fundamental challenges” and “financial profiles in the wake of difficult conditions on Dubai’s property market.”

Dubai has been extremely hard hit by the current economic crisis, and there is a substantial amount of property for sale in Dubai. Exactly how far prices will fall is anybody’s guess, and it will be interesting to find out just how extensive the expat exodus was over the summer. Unfortunately the news reports from Dubai are invariably government manufactured, and written in an attempt to disguise the true size of the downturn.

So many projects have been canceled, delayed or put on hold, it will be years before the dust settles and some sort of clear picture emerges. But one thing is clear – property investors are avoiding Dubai like the plague at the moment. Until such times as prices reach a bottom – and bottom has been called numerous occasions recently – they are unlikely to be attracted back.