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/

The Property market in Dubai leads the current financial crisis league. Nowhere has real estate values plummeted as steep as in the previously booming Persian Gulf coast. House prices dived in Dubai by 32 percent during the last twelve months. The properties prices on the artificial island of Palm Jumeirah (Dubai Palm Island) outside Dubai is now down to its lowest level in three years. It costs only 2.450 dollar/square meter to buy a house among the luxury villas, hotels and shops on the palm-shaped island.

It is 60 percent less than for only six months ago and the lowest square meter prices in three years. Meanwhile, rents in the area has lost a third in the spring since March. Previous twelve-month period was a red-hot market, where the prices rose by 48 percent. This means that Dubai in a year has gone from being the world’s fastest growing real estate market to the world’s second worst. Only depressed Latvia house prices fell more.

Shortly thereafter came the U.S. and the UK with house price falls of around 18 percent.

The much smaller list of markets with rising property prices, top the report with Israel, which increased by 11 percent during the period. Deuce and three in the list is the Czech Republic and tax paradise Jersey in the English Channel.