Emaar Facing More Issues Closes Algerian Offices

Dubai-based developer, Emaar properties saw another slide in share prices after closing it's offices in Algeria due to "a lack of progress which is beyond the company's control." The action came after announcements that Emaar will be merging with several other government-owned developers, and threw more confusion and lack of confidence into Dubai's stock and real estate markets. Investors reacted badly to the proposed merger and, Emaar's shares fell sharply on the announcement. Several analysts have stopped rating the company, because of lack of transparency in the deal, but one thing is clear - the merger is highly likely to damage existing shareholders. Emaar shares dropped another  7.2%, to close at 2.60 dirhams (71 cents) Sunday after the Algerian announcement.

The amount of investment property in Dubai for sale is quite staggering at the moment, and one would be hard pushed to call this an investment, unless purchased at fire sale prices. Although prices have fallen between 50-70% (depending who is asked) the fall is by no means over yet. The summer ex-pat exodus should have an effect and hopefully, after the summer, we will all have a better idea of where things stand.

IPI is going on vacation for the next three weeks, to visit a few potential investment spots, and see where the market is, in the flesh, so to speak. On our itinerary is London, Paris and Northern France.