July 11th, 2011 Posted by admin
Dubai Real Estate crash has shadowed its marvelous buildings and construction projects in thick grey clouds. There are speculations that the situation would be fixed by 2012 but till then the damage would be done. Even the tall and tough Burj Khalifa couldn?t save itself from these crises and stands shuddered and deserted in midst of other less spectacular buildings.
The value of property and rents in Dubai has dropped to shocking extent and there still are no tenants and buyers. Most of the newly constructed skyscrapers are empty. Just in the best and the most Luxurious building of the world i.e. Burj Khalifa, more than 800 out of the 900 apartments are empty.
It was initially believed that the real estate sector?s collapse in Dubai would affect the commercial land primarily and the situation would soon be on the road to recovery. But that was just the tip of the ice berg. The rumors of serious financial crises and collapse of the city?s economy just precisely did that. Major companies decided to shift their business and soon Dubai was no longer the business hub of the top rated brands. Commercial Property: The miscalculation of the city?s management caused over supply of infrastructure and luxury resources in Dubai.
The crises of property in Dubai halted the construction of various buildings and Dubai rental market also faced heavy decline in prices. This glut is no longer source of pride for the owners; they are now forced to offer unbelievable incentives to prospect tenants and they hardly hear from them again. Most of business activities have ceased in Dubai. About half of the construction projects have cancelled and the work speed at the remaining projects is very slow. The debt and interest is piling on the city and the investors are just not ready to be one of the victims of the worst ever property crises of Middle East. Residential Property: The condition in Dubai residential sector is no better. Since many companies have left the city, most of the expatriate are jobless and no longer afford to have an apartment of their own. Many of these immigrants have moved to other destinations.
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