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Dubai property turmoil rebounds on UK buyers
Saturday, 28 November 2009
Britons who bought second homes in Dubai have been left nursing heavy losses since its property bubble burst.
House prices in Dubai were already falling sharply before State-owned investment firm Dubai World asked for delays in repaying part of its debt, in a move that will further knock confidence in the country.
Around 47% has been wiped off the value of property in Dubai during the year to the end of September, according to the Global Property Guide, although the group said the falls followed massive gains seen during the previous year.
The main problem is a massive oversupply due to Dubai’s recent construction boom.
But while the country was once popular with Britons looking to buy second homes abroad, with people attracted by its sunny climate and double digit returns on property, demand has recently nose-dived.
Not only are prices falling, but would-be overseas buyers are also facing a struggle to raise the finance they need to purchase a property.
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It still amazes me how this can come as any kind of shock to anyone. Like in NI, people with very little common sense and too much money (or more accurately, the ability to borrow too much money from incompetent banks) thought property prices booming at ridiculously high rates was totally sustainable. Now they are going to pay for their short sightedness, greed and lack of common sense where it will hurt most, their wallets. This is a problem which every single property investor/speculator is partly responsible for. Chickens...home...roost.
Posted by Jack | 28.11.09, 12:19 GMT