The Dubai Bubble: burst, melt or expand?
Dubai expects its economy to expand by just under 2.5 percent in 2009 as real estate, construction and exports come under pressure. This growth figure comes in sharp contrast with the usual 8-9% yearly growth. (Full)
The hardest hit is, of course, the real estate market. A local rumour says that Emirates Airlines is still doing well, simply because it is flying so many expat workers back home.
Rumour or not, construction firms in the UAE confirm they are sending some 20,000 Indian workers back home next month. (Full).
Fact also is that almost 60 percent of real estate projects in Dubai, worth a total of $75 billion, are being either delayed or cancelled according to a new report by HSBC. (Full)
It is not just Dubai. Also the Emirate of Abu Dhabi takes serious hits: the leading real estate developers note drops in profit of up to 94% in the last quarter of 2008. Full)
And we have not reached bottom yet. While some property prices have fallen 50%, the prediction is the bottom will only be reached by the 2nd half of 2009. (Full)
Guess Emirates Airlines will continue to be busy repatriating expats for quite a while.
Who would have thought selling cheap home loans in some US back quarters would have this ripple effect across the globe, hey?
Update: See also:
- Dubai Economy in Free Fall
- List of cancelled projects in Dubai
- Driven down by debt, Dubai expats give new meaning to long-stay car park
More posts on The Road about Dubai
Video discovered via MootBox. Picture courtesy Daveandmairi via A Picture's Worth
Peter. Flemish, European, aid worker, expeditioner, sailor, traveller, husband, father, friend, nutcase. Not necessarily in that order.
7 comments:
Peter
Here is a list of cancelled projects:
http://2.bp.blogspot.com/_O5OuU90ru-Y/SYozNaSIf0I/AAAAAAAADFU/d2UB8ei8dC8/
s1600-h/13781-2.JPG
Yet another article with some data:
http://business.timesonline.co.uk/tol/business/
markets/the_gulf/article5663618.ece
Is EK also belly-up?
@The Beaver
Very interesting quotes..
Thanks!
I have no info on Emirates Airlines, but think they still will have a while to go...
P.
It's all right.Atleast it is showing growth rate,even at the time of recession.This should be taken as postive symbol.
I think that it's neither bust for Dubai real estate industry as it was the part of global economic crisis and there is still space for another Boom for Dubai Property business and I am hopeful about it.
Well, nice analysis of drowning Dubai real estate industry but I think that major factor behind this is global real estate crisis which has affected Dubai as well but I am still hopeful that things would be getting better although it would take much more time to recover.
This is very interesting article that has lot of amazing facts. I have found lot of information and facts about real estate of Dubai. This is very valuable research on Dubai good work keeps it up!!!!!
datadubai.com/
Great information do you have some useful points about Dubai boom bust.
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