As Dubai property market collapses, Britons lose savings
The global economic meltdown, which has adversely affected the once booming real estate market of Dubai, has brought some bad news for the Britons who invested hundreds of thousands of pounds in unbuilt property during Dubai's flourishing years as they now seem to be losing all their money following the rapid correction in the market.
For 800-strong group of investors, hundreds of millions of pounds are at risk. These individuals had put deposits on holiday flats to property brokers.
An abrupt slow down or stop has been put to some of the building sites, which also includes "Palm Island." A series of artificial peninsulas in the shape of palm trees packed with seafront holiday villas were being planned by the city; however only one has been completed till now.
Furthermore, as per the estimate from Morgan Stanley there has been cancellation for projects worth £165 billion across the UAE. A fall in prices in Dubai by more than 40% has been witnessed since September.
Plans were bought off by many investors as prices soared, either because it was cheaper, in the case of small-time buyers looking for a home in the sun. Some investors were expecting to flip or sell on for a quick profit without ever having to pay the full value.
A hard hit was particularly experienced by investors on the end of a chain of "flippers" since the prices fell while building was put on hold.
New Zealand News
- First deliveries of all-electric Porsche in Australia to take place this weekend
- Crown Resorts suffers record six-month loss due to COVID-19 closures
- Australia’s Crown Resorts 'not suitable' for Sydney gaming license: Inquiry Commission
- What Does Phasing Out Cheques Tell Us About Finance in New Zealand?
- South Korean casino operator GKL closes third casino amid soaring cases of COVID-19