News From the UAE Property Markets

As usual, it is hard to sift the genuine information from the press releases coming out of the UAE. To read some stories, anyone would think that the global financial crisis has passed the region by. According to Business 24/7 “Sweet Homes, an Ajman-based developer, said it will not lower selling prices for either of its two projects.”

They go on claim that Sweet homes have sold 95% of Rainbow Towers at no discount, but then state that banks in Ajman are not lending and not likely to until 2010 and a spokesman for Sweet Homes said, “the global downturn and subsequent slowdown in the regional real estate has made Ajman a more attractive destination,” which rather contradicts the first statement.

The situation in Ajman is further confused because developers are continuing to sell properties with a guaranteed visa.  The Ajman government withdrew the guarantee of a visa for foreign buyers last year,  but according to the developers, they have not been given written notice and feel they can promise visas still.They are hedging their bets and promising just a “visa.” Whether that is a ten-day visitor visa remains to be seen.

According to Ghanem bin Saad Al Ghanem CEO of Qatari Diar, the company’s projects have not been affected by the financial crisis, or the war between Israel and Hamas. They are planning to launch a massive residential complex in the West Bank and another in Gaza. Make your own mind up about that one.

In Abu Dhabi, an organisation to compile and share information on the property sector, called the Society of Property Researchers, will be established by developer Al Dar Properties supported by the UK Society of Property Researchers. Caveat Emptor is the first thing that comes to mind. What I am hearing is that the value of property contracts in the last quarter of 2008 was 85% down on the previous year.

Over in Dubai, a few die-hards are still trying push the idea that there is no such thing as a financial crisis, although the arrests for frauds continue. Last year was pretty hectic as far as frauds and scandals in Dubai but the latest one concerns Kabir Mulchandani, who is denying allegations of a Dh2.8 billion fraud.

There is an awful lot of confusion surrounding Dubai’s real estate market at the moment with a slew of recently introduced laws that are either in the pipeline or have been passed but have created more confusion with poor wording.

Some solid facts -

The International Herald Tribune
Dubai World have canceled 200 luxury condos in Las Vegas
IPI
Damac properties fail to pay full settlement to laid off employees
Reuters
Nakheel facing trouble as smaller developers fail to pay