- CNTV English - CCTV News

Homepage > News > Biz >

Dubai's real estate market hit hard by financial crisis

09-28-2011 10:30 BJT

DUBAI, Sept. 27 (Xinhua) -- Visitors to the three-day property fair and exhibition "Cityscape Global," which kicked off Tuesday, were surprised when they noticed that this year's fair and exhibition spread only over three halls in the Dubai World Trade Center (DWTC).

Three years ago, during the heydays at the Gulf, when oil prices hit 140 U.S. dollars per barrel, this fair occupied all 10 halls of the DWTC. The crisis has taken its toll in Dubai, which is considered the focal point of the Arab business world.

According to Citibank, real estate projects worth 170 billion dollars have been cancelled since the outbreak of the financial crisis. Rents have fallen by almost four fifths since 2008.

Nevertheless there are also some green shoots visible at the congress. Ali Rashid Lootah, chairman of the state-owned developer Nakheel unveiled the Palm Residences, a villa community on the man- made island Palm Jumeirah, a popular tourist hotspot and home of four luxurious beach hotels.

"We see more sales this year, real estate prices have stabilized, and we are confident to post a net profit again in 2011," Lootah told Xinhua.

Nakheel is currently restructuring debts worth 16 billion dollars. Asked by Xinhua, why a recent Islamic Bond-issuance worth 1.03 billion dollars was not oversubscribed, he answered that the Nakheel is still undervalued by the market.

Dubai has not seen any civil unrest for decades and has benefitted from unrest in other Arab countries.

According to property consultant CB Richard, Dubai's economy is expected to grow by 3.5 percent in 2011. Consequently, developers in the business sector also notice growing buying interest.

Rasha Hamid, senior sales manager at Union Properties, whose shares are listed at the Dubai Financial Market, told Xinhua, that the 80-storeyed multi-purpose Index tower, designed by star architect Lord Norman Foster, is already 35 percent occupied "and demand is rising."

The Index tower is located in the heart of Dubai's financial district and has just been completed. It has attracted private tenants as well as companies like Egyptian investment bank EFG Hermes.

"The first 25th floors are office space while the rest of the tower is occupied by luxurious flats and leisure facilities," she said.

According to CB Richard Ellis, "investors in Dubai are now more focused on high end properties. During the second quarter this year, the total transaction value increased from 715 million dollars in the same quarter in 2010 to 739 million dollars."

The research group added that Dubai's new hot spots are the yacht district Dubai Marina, Burj Dubai, Palm Jumeirah and Emirates Living. "58 percent of total transactions were found to be registered in these developments."



Editor:Zhang Rui |Source: Xinhua

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program