A couple of weeks ago come news that Dubai World, which is behind Dubai’s extravagant construction of artificial islands and giant skyscrapers, suspend payments in six months.
Because of the massive State interference in the company has data led to speculation that the Dubai state should halt payments, or at least that the state is unable to guarantee Dubai World’s commitment. The conglomerate Dubai World has asked for debt restructuring and extension of credit from lenders to May 2010.
More problems, Nakheel, a property development company owned by Dubai World, reported during its first six months of its fiscal year broken a loss of 13.4 billion dirhams. This corresponds to a loss of 3.7 billion U.S. dollars.
Last week had Dubai World talks with a number of banks to restructure 26 billion dollars in debt, which includes a bond for 3.5 billion U.S. dollars issued by Nakheel. The bond will expire on 14 December. The government of Dubai announced that it will pay 4.1 billion U.S. dollars to cover the liabilities of property developer Nakheel.
Every week come new information about the finance crisis in Dubai, and in this new finance crisis are all the banks in the world involved in. Every bank around the world has borrowed out money to Dubai spectacular building companies and the other building project in Dubai like The World islands, Waterfront, the subway, the ski slope, Palm Deira, Maritime City and many more fantasy project. Now have the banks understand there that they maybe don’t going to get the money back. The rich oil states around Dubai are not willing to pay the bill; they are going too asked for debt restructuring and extension of credit.
The affect are, that our mortgage in Spain and Europe is going to be higher and no new mortgage to clients. So here in Marbella and the rest of Spain, it’s going to be more apartments and villas for sale on the market to lower prices, the banks have to take over more properties which they must sell to any prices, so the prices is going down more.
Related articles;
http://www.sundream-estate.com/blog/2009/12/02/a-property-in-marbella-is-not-for-the-spanish-banks/
http://www.sundream-estate.com/blog/2009/05/27/the-worlds-largest-real-estate-crash-league/
December 22nd, 2009 at 5:21 pm
Once of the big concerns is how this financial collapse will impact world credit markets. In Marabell and in the United States if credit lines dry up all of the real estate market will halt completely.
January 28th, 2010 at 8:16 pm
[...] Dubai financial crisis affect Marbella properties market [...]
May 17th, 2010 at 8:18 am
Dubai indeed have problems on their debts and with the financial crisis, it means that it will be kind of difficult for them to unless, they can generate money.