Global crunch bites investors in Dubai
The recession has been hard for developers of real estate in the UAE with any number of companies going under, but it's not just builders who have struggled as failing investors also start to feel the bite.
Development of property in Dubai was unparalleled at the peak of the markets in 2006-7, when ideas and costs knew no bounds. However, the global landslide has seen developers and investors alike slide south with it.
Now there are two Dubai developers who have started to collect on their investors - Bonyan International and Cayan Development, both of which are now repossessing properties on which investors have defaulted payment. Given the economic melee, the companies have exercised a degree of patience and have waited nearly 12 months before bringing action.
With economic recovery expected to take another 12 months in the emirate, any existing developer is likely to follow suit to remain in business. It could also mean investors looking for property to buy in Dubai may find some payment contracts hard to negotiate although prices remain good.