Global Economic Crisis Affect Real Estate Industry
January 15th, 2009
The global economic crisis, which has been one of the worst in modern time, has hurt the real estate investments industry greatly. The root cause of the crisis is also pointing towards real estate sector (sub-prime loans). Getting loans for new homes in most parts of world is very hard due to the liquidity squeeze. So people with cash balance can invest in Property overseas, the preferred destinations could be the Dubai properties which are abundant and crashing greatly. Though there is a global fall in real estate sector, it hasn’t been as bad in the Dubai property market as said by Sweet Homes, one of the leading property developers in UAE.
The fall in real estate prices in Dubai should reach a bottom in just three to four months, according to Ali Khan, executive director of investment bank Arqaam Capital. ‘The real estate market will reach a bottom a lot quicker than people are anticipating,’ he said. Dubai has allowed freehold ownership of property since 2002 but recently this year property owners are not issued residence visas for expat owners. Property developers are asking the government to facilitate three-year renewable residence visas to expatriate property owners. Also they are asking the bankers to increase liquidity in property loans. Stop repossession of your house by releasing its equity and renting it back…
Posted in Real Estate