Things in Dubai seem as dire as ever, the crash continues to take its toll with the amount of foreclosures in Dubai still climbing and developers struggling to stay afloat. The latest news fro Dubai concerns Dubai Holdings subsidiary, the Dubai Holding Commercial Operations Group, which has just been granted a two month extension to their revolving credit facility of $555 million.
More on Dubai Property Investment :: Dubai Holding Gets $555 Million Credit Extension
Abu Dhabi Finance has recently announced that they are reducing their interest rates to a minimum of 5.5%. This has been seen as a positive move by many of Dubai’s property agents who believe that if the Dubai banks follow suit it could lead to an increase in market activity. It is obvious that the key factor in business is cash flow and if the cost of a mortgage and maintenance is higher for the landlord than the rent he is receiving for the property, it undoubtedly causes inequality and restrictions for the market place. Furthermore it does not encourage future buyers to enter the Dubai real estate market. Currently the lowest available interest rate in Dubai is 7.5% which may not be allowing existing and new landlords to maintain or grow their business.
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.
The Dubai International Property Show opened today with almost “no visitors” according to Property wire.
‘These are the difficult times and we must admit the reality and then find the solution,’ said Abdullah M Al Shizawi, managing partner of Heart of Capital.
More on Dubai International Property Show a Flop and Another Broker in Dubai Goes Under
A report released yesterday said Dubai Real Estate is witnessing a seasonal slowing in price appreciation.
The residential property investment market recorded a 1.6 per cent month-over-month gain in June, which indicates a slower price appreciation compared to the four point four percent in April and three point five per cent recorded in May. The report came from Al Mal Capital’s “Real Estate Monthly Report” for June.
More on Investing in Dubai Property – Seasonal slowdown seen
No one can say that Dubai is not forward thinking in their plans for the emirate. There seems to be a never ending supply of new developments and staggering construction projects. An interesting statistic I came across recently –
