Dubai Property Hunt

Yes, this is the question on everybody’s lips these days- from the property developers at Nakheel, Tatweer and Zawya, to the Bangladeshi and Pakistani laborers who toil in the heat of Dubai. From being a construction worker’s paradise a few years ago, the streets and corners of Dubai reek of an uneasy quietness that threaten to paralyze the whole city. It is therefore not uncommon to see signs of Dubai property for sale or Abu Dhabi property for sale across these emirates.

With the situation in Dubai slowly getting better, it seems that once abandoned projects are again being picked up for completion by former or new owners. Some projects have changed hands and are in the charge of new owners or new contractors. What is important, however, is that business is picking up once again in the housing and construction sectors.

The latest news hitting the Internet and the newsstands today is that Dubai World, the principal ports and shipping authority of the city of Dubai has succeeded in restructuring US$26 billion of its almost US$60 billion debt outstanding with various creditors. This is indeed good news and will do a lot to dispel the rumors of Dubai itself being in a financial crisis.

The year 2009 has been a year of many changes in the Dubai property market. It has become clear that the earlier boom period seen over the last six years or so has come to an end, and the market is clearly in a downward spiral. Many are wondering when it will bottom out, and it is expected that some of the lowest price levels will be seen in March-April next year.

The news about Dubai´s financial crisis has been travelling around the world faster than the speed of light. And millions of people, both connected and unconnected with Dubai and its markets are making decisions and taking sides even faster than that. It certainly is time to find out that behind all the smoke and mirrors, what is the real truth behind the supposed financial crisis in this fair emirate?

One look at the newspaper and the worst is confirmed. The Dubai Government has officially stated that it will not bail out Dubai World from a US$60 billion debt repayment schedule. This means that the ports and shipping related authority is left on its own to figure out how to restructure the debt repayments to the satisfaction of creditors and other concerned parties.

To a lover of this emirate, the present happenings in the Dubai stock market and construction and housing sectors could only be described as horrific. Though the doomsayers would always maintain an ‘I told you so’ attitude, the truth is that the market is showing a response to two factors.

The past is another country, they say. And that is certainly true of Dubai these days. Once the vibrant sun shone on this glittering emirate, and the boom in construction and housing was such that it seemed it would go on forever. Alas, all good things cannot last indefinitely and this has proved true for Dubai as well.