Emaar Properties posted a loss Thursday of 1.29 billion dirhams, or $351.5 million, from April through June. That's down from a profit of 2.12 billion dirhams ($577.7 million) a year earlier.
Part of the drop comes from a 65 percent revenue slide stemming from a severe property slump in Dubai and other effects of the global downturn.
But the biggest hit to Emaar's balance sheet comes from a 1.73 billion dirham ($471.4 million) total writedown of its John Laing Homes division in the U.S. It paid $1.05 billion for the company in 2006.END
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Emaar was just trying to expand to rapidly like Royal Bank Of Scotalnd. Global down turn was worst hit in America and many realestate companies went bust in USA.
ReplyDeleteSub-prime mortgage scheme is the major reason that fueled the recent financial crisis that became the world wide crush down. This decrease in property value in US ultimately shook investor confidence in credit market. The other affects of this crisis includes decline in the asset values, central bank tighten the credit policies that decreased the flow of cash in the business community and general consumer and the society suffered the loss in term of jobs, output and wealth badly. And all this just because of worthless sub prime mortgage scheme.
ReplyDeleteHi,
ReplyDeleteDubai rents continued to plunge in July on weaker demand and increased supply – but some areas saw rates rise as tenants upgraded to bigger properties, a new report found on Wednesday. You may see some properties listed at Bayut.com and developments in the UAE.
emmer Regain there respect because Dubai is really a great place for investors. I don’t think that real estate market in Dubai will face any threat in near future. Because their population increase rapidly
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