The ongoing financial crisis has hit Dubai hard and the rather silly approach being taken by the authorities is to pump out press release after press release claiming that there is not a problem. We have gone through phases with these press releases. First – there was no problem and Dubai was immune to the downturn. Then, Dubai was affected, but only slightly, next up – OK, Dubai has a problem, but we are now at bottom.
I am slowly coming to the conclusion that the governments and news media think all potential readers are morons. According to this ridiculous press release disguised as journalism, Emirates Business says:
More on Dubai Property Prices Rise Thirty Percent!!!!!!!!!!!!!
Colliers International have just released their “Dubai Q4 House Price Index for Dubai. According to the HPI, “the house prices in the emirate dropped by an average of 8% between October 2008 and December 2008. Despite this drop in prices the index indicates a year-on-year price growth of 59% between Q4 2007 and Q4 2008.” The index shows that the overall average price level is back down to Q2 2008 levels. Colliers says the index “will help investors benchmark investment values over a period of time.”
More on Dubai Property Prices Fall Massively – But Colliers International says “just a little”
The prevailing high prices in Dubai’s real estate sector are not sustainable for long and a slowdown is likely, a top asset management company chief executive said this week
“Prices are bound to stop growing at this maddening scale,” said Shehab Gargash, chief executive officer (CEO) of Daman Investments, on the sidelines of a press conference to announce investment in renewable energy venture. “Will it be a crash? I don’t think so. I doubt we will see a significant long-term bust. But we will see corrections.”
