As Dubai continues to struggle with its real estate woes, the latest sign that things are not yet quite set to improve comes with the report that Dubai’s real estate watchdog organization has canceled around 217 registered property projects since 2009[1]. The group, called the Real Estate Regulatory Authority (RERA), reviewed about 450 projects in the emirate and may have canceled as many as 217, although it admitted that 237 would likely be completed “in due course.” Last year, the value of property transactions fells to 119.5 billion dirhams ($32.5 billion) from 152.9 billion dirhams in 2009, and residential prices in the region are still falling with declines of 1.2 percent in May. Home prices are down 64 percent from their mid-2008 peak[2].
Analysts credit Dubai’s troubles with massive over-construction during a “speculation-filled [real estate] boom” that ultimately ended when construction far outstripped demand.
Do you think that Dubai real estate will ever recover? What can the U.S. learn from the situation?
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[1] http://www.chicagotribune.com/business/yourmoney/sns-rt-us-dubai-projectstre75b0lk-20110612,0,971482.story
[2] http://www.bloomberg.com/news/2011-06-12/dubai-property-regulator-cancelled-217-projects-as-transactions-dry-up.html
How long is it going to take for the American people to come to the realization that we are in a Down Spiral, both socially and economically? The time has come for the Silent Majority to become not so Silent.
The time has come for Change alright, real change….We need to close our doors to those coming here illegally, those bringing Drugs into the Nation. We are at War with the Cartels of Mexico…The time has come to seek out those in Mexico, send into that Nation our military through a coordinated effort with the Mexican Government…Those in Mexican Government choosing to align themselves with the Cartels need to be eliminated by what ever means necessary. Listen and listen sooner than later, This is a WAR as big as the War in the Middle East.
Next we need to put Afghanistan as well as Iraq on notice we will be leaving soon and you need to take the lead on defending your country from the insurgents and terrorist. Especially Afghanistan, there sits a President that will do what ever he needs to stay in power, he’s corrupt and needs a wake up call. We must tell him that we will not tolerate the corruption in his government.\
Pakistan; Wowm now here’s an Ally that we need to straighten out, again sooner than later. They need to bring the fight from the urban areas to the Tribal Radicals…Taliban refuge is not acceptable, no matter where it lays in their country…If they don’t we will, sure they have Nuclear Weapons, have you any idea where they got them? Let me tell you, they obtained a great deal of their technology from our other Allies across the pond….Germany, France and good ol USSR-Russia. Our NATO Allies have for years been doing far less than their share, the time has come for the US to say, Adios, carry your share or we’re out of here.
Oil, right here in the good ol USA, we need to clean up our act as well. What with all the Environmental Wacko’s telling us how to deal with the energy issue is more than insane. We need to tell them to sit down and shut up, enough is enough. We have the EPA, US ARMY Corps of Engineers, both organizations have been taken over by the Radical Environmentals. I was told recently by an environmental group Chairman in Washington State that if he wanted to have a streams status changed from nonsignificant to a Navigable Waterway simply making a phone call. I was appalled. Now get this; for over 20 years in a small valley in the greater Seattle area, for over 20 years the residents have been fighting to clean what was once an agriculture ditch, however has now been reclassified as a Vital Significant Waterway, stream preventing those folks from removing over 65,000 tons of silt. One resident said, if there are fish there, they must have used Tennis Shoes to get there. Example after example this is the rule rather than the exception.
I hope all that read this come to realize we are in dire straights, if we don’t make some changes in those we elect, we are doomed. What happened to the guys with guts, guts enough to tell the the Left to Love it or Leave it…We don’t have another 10 years to get it right…This coming 2012 Election is and will be the the critical mass that is needed to turn this country around. DUMP OBAMA not sure who I will endorse, but you can bet he will have to have more than what I’m hearing now.
It is going to take a long time for that market to recover. With that market being that overbuilt, it is going to take years for the current inventory to be sold off and then the new supply will need to be sold out for that market to stablize. It is going to be a long process. I don’t think we are going to see the excess of money and willingness to spend the kind of money that was being spent when all of this over building started.
Dubai used to be the ultimate in real estate. Now the “secret” is out and many North Americans are realizing that Mexico real estate is an untapped well of opportunity.
Thank you for the heads up on Dubai.
John