Monday, 31 December 2012

MIDEAST DEBT-UAE risks slowing property recovery with mortgage cap | Reuters

Last September, people lined up for hours in a square outside the headquarters of leading Dubai real estate developer Emaar Properties, waiting for a chance to buy units in a luxury apartment complex.

The complex, in a fashionable area of downtown Dubai, had not yet been built. But the buyers, who included foreigners from Europe and Asia as well as local citizens, were so keen to get hold of the apartments that they were willing to sign up based on construction plans.

Some were hoping to make money even before the units were completed, by selling on their ownership if property prices rose. The scene recalled, on a smaller scale, Dubai's property bubble of the mid-2000s, when frenzied speculation sent real estate prices soaring.

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