Property News Roundup

Dubai/UAE

Prices for residential property in Dubai are expected to fall another 50% in 2009, according to Landmark, although they have faith that the high end of the market will drop a little less in value. Download report.

Prices on the Palm Jumeirah have already fallen 50% from their September 2008 highs, with 4 bedroom villas now selling for around $1.7 million, down from $3.8 million. Part of the cause is the bank’s refusal to lend to anyone employed in the real estate sector. Report

The Burj Dubai reaches its final height – 818 meters. Burj Dubai complete.

HSBC bank reports that there are now projects worth $75 billion either on hold or canceled in the UAE. Another developer is in trouble and unable to repay deposits paid on a delayed project. Jehaan sold to third party.

More confusion surrounds the “One family, one villa,” rule. With a report that there will be no exceptions other than in special “work compounds.” Yet at the same time, another report states that villa sharing will be allowed as long as the property is “not overcrowded.” We take this to mean that, like many laws in Dubai, this is negotiable in cash.

Europe

Spain is attempting to divest herself of hundreds of thousands of un-wanted immigrant workers. Since the property crash, there has been a massive jump in unemployment, and a new initiative by the Spanish government to persuade immigrants to return (mostly to Africa) offers full unemployment benefits to legal immigrants if they agree not to return for at least three years. Only 1,400 have so far agreed.In the meantime, banks are continuing debt for equity swaps with failing developers as thye government bails out the banks.

France is seeing a dramatic fall in property prices, despite the efforts a a few developers and agents to keep the hype flowing. Demand from British buyers has skewed French prices in some regions and with the falling value of the pound, along with a growing recession, prices are correcting fast. Recent strikes failed to have an impact on Mr. Sarkosy’s approach to dealing with the economic crisis. The government will “continue on the same lines” in order to “pull out of the crisis.” Which involves bailing out the banks, car makers and oddly enough, the newspapers. Nice to have friends in high places.

Germany – Hypo real estate holding AG, one of the country’s major lenders, shares fell again as the German goverment said it was considering taking a stake of between 90-95% in the company, which has already recieved E90 billion of bailout money yet still faces collapse.

UK

Prices for property in the UK are expected to fall another 25% this year. According to the Telegraph, the only hope for the UK economy is to start offering cheap mortgages which will boost prices and return Britain to another property bubble. This will lead to job creation (estate agents presumably) and prevent a recession. Sir James Crosby, the former chief executive of HBOS, has recommended the British government uses taxpayers money to buy all the so-called “bad assets” at massively inflated values to save the housing market.

USA

New York is starting to feel the pain of the financial crisis. More than any other US market, Manhattan relied almost solely on highly paid bank executives taking large bonuses for “creating wealth,” by juggling money. As it appears that this “wealth,” was nothing more than over-valued assets, prices are beginning a steep decline in New York.