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/

With this economic crisis we are in now have more and more people sold there apartments or villas and rent a properties instead. And I found this article in SurinEnglish about this problem. More than 900 tenants are taken to court for not paying their rent in the province of Malaga. More and more landlords in the province of Malaga and here in Marbella are being forced to take their tenants to court over non-payment of rent or deposits, figures from the National Statistics Institute (INE) reveal. Last year legal action was sought in 1,019 cases and in more than 91 per cent of these, (931) this was for non-payment of rent.

The province of Malaga comes behind only Barcelona (4,576), Madrid (2,391) and Valencia (1,295) in the national listing, which proves just how hard the area has been hit by the construction slump and the massive job losses this has entailed and this has only started.

Cayetano Rengel, president of the Malaga Property Owners Association, says that the legal process involved in evicting tenants is discriminatory against landlords. “The process usually goes on for more than a year, and landlords find themselves defenseless, as they aren’t receiving the rent owed to them, nor can they let the property to other tenants,” Rengel points out.

In the majority of the cases which went through court in the province of Malaga last year, the judge found in favor of the claimant (977 cases), while 42 were rejected.
The number of cases which reached court in the province fell almost 14 per cent from 1,173 in 2007 to 1,019 in 2008. Estate agents often recommend that landlords use an arbitration system that cuts court action costs in case of conflict with tenants. By this system, tenants are obliged to present pay slips or guarantees when they sign a rental contract.

The week has gone fast, but still not. Every day it happens something new, we receive two new villas and two new apartments for sale, new reports of Malaya in Marbella, economic reports in the world, and other news. I have written little about it, here are this week’s blog: