| Dubai slowdown |
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| Written by Paul Williams | |
| Friday, 10 October 2008 | |
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Claims that property slowdown is not merely seasonal trend.
Better Homes, the Dubai property group has today reported that they believe Dubai and Abu Dhabi have started to show signs they may be starting to feel the pressure of a global slowdown emanating from the property industry. According to the report there are signs of distress amongst short term investors.According to Niraj Masand, director of commercial operations at Better Homes, the summer and Ramadan are typically the slowest parts of the business year, but activity this quarter is clearly down on the same period in recent years. “To a certain extent the Dubai property market was anyway overheated and a slight correction was round the corner. The global crisis has made investors slightly more cautious,” said Masand. A new report from Better Homes says the slowdown is not caused solely by the present widespread economic woes but that a combination of Dubai government's corruption probe, new mortgage laws and a regular seasonal slowing are all adding to the worries. The slowdown in demand was exemplified in an example of a commercial building at Dubai Waterfront being sold at a negative premium as global markets squeeze liquidity and local banks rein in any lucrative financial deals. The report says more of this type of sale are likely. But the drop may only be temporary, depending on market situation. “Anything that will be ready in 2009 will sustain and see even premiums being demanded,” Masand said. |
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