DUBAI: Dubai is experiencing an increase in defaults in high-end properties as financing conditions worsen and is likely to see smaller property developers merge, a member of the emirate’s financial crisis committee said on Sunday.
“There are more and more defaults on the high end, if banks do not give mortgages and speculators are high (in number) in the market,” Marwan bin Ghalita, chief executive of the Real Estate Regulatory Authority told Reuters in an interview.
Bin Ghalita said now would be a good time for smaller developers to join forces, and that he expected some to do so. “If you look at the market, a merger between smaller companies would give it confidence. I always support and encourage good mergers in any sector if it adds value to the sector,” he said.
By Reuters
Tuesday, December 2, 2008
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3 comments:
Banks have stopped lending credit and those who already have mortgages in place are being asked by banks to pay more on the loans.
I have read that a couple had shifted to Dubai from New York in search of a more peaceful life. But during the property boom they bought an apartment after much difficulty in raising money for the property. Today they wish they waited some more time before doing that.
Really feel for the couple. I understand they might have paid an exorbitant price just 8-10 months ago and today they would get the same property probably at 30% less.
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