The Disaster That Is Dubai’s Real Estate Market
Dana Rubinstein Oct. 7, 2010, 1:19 p.m.
It’s been a while since we’ve read a good Dubai real estate disaster update.
This morning’s comes care of India’s NDTV. In a nutshell, vacancy rates are still rising, skyscrapers still remain incomplete, and purchasers of units in those incomplete towers are still unable to get their money back.
Here’s a snippet:
Apartment buyers who made down payments for property construction cannot find what is happening with their money, these people said. Bank loans held on undelivered property often cannot be forfeited, and borrowers have had to pay higher interest rates even as banks have not let them walk away from the mortgages.
“The rules of the game are definitely opaque here,” said an investor who has bought several properties in Dubai and who insisted on anonymity because of delicate talks with developers and regulators. “In the United States, I would know my legal position much more clearly and could take actions if necessary.”
Read the whole thing here.