Just when you thought the American real estate industry was in trouble, news from Dubai suggests things are not much better there. In the past two years some 200 plus real estate projects have been canceled according to the Real Estate Regulatory Authority there. RERA reviewed some 450 projects, only 237 of which seem destined for completion.
According to the news, the value of property sales transactions there plummeted from $41.6 billion in 2009 to a bit more than $32 billion for 2010. This news came about via studies into Emirates bond issuance, and accordingly the Dubai government apparently has direct outstanding dept in excess of $31.4 billion as of the end of May.
Furthermore, the same report showed that home values in Dubai declined by 1.2 percent since May, 2010. Apartments and other real estate sectors also fell similarly, according to the report. Despite the disparaging news however, experts at Jones Lang LaSalle predict stability in the market there. As more and more vacant homes are absorbed by the market, the world's leading real estate experts suggest Dubai is "past the supply peak."
Oversupply has clearly hit economies worldwide for one reason or another. But, like any first year economics student can tell you, price is a factor in regaining market strength. Dubai's property values have slumped to as low as 70 percent reductions, obviously opening the way for absorption as Jones Lang LaSalle suggested. Meanwhile, Barclays Bank confirmed the sale of its first repossessed home in Dubai last week. The news here suggests many more such properties could be disposed of over the next term.
For interested parties, we searched Google for some suggested properties in Dubai, which we reveal above and below. Interestingly, it took quite some time for us to find both a usable and friendly real estate website, plus images that were of good size, quality, and not watermarked ridiculously.
You would think UAE real estate companies would be in the house and villa selling business, not the image copyrighting scene? The best and most useful we could find quickly was Hamptons International, and even they have some watermarked idiocy going on.