Default in Dubai is to lead to the downturn of real estate value

What are the lessons and consequencies of Dubai experiment?

In brief: Choosing where to invest it is necessary to parse all false reports of growing up.

The real estate price in Dubai emirate reached its top last year. Thus promoters could propose secure crisis investments in real estate. Now real estate market of Dubai is suffering downturn which have been lasting up to 2011 according to the exsperts’ forecasts.

Promoters used to connect real estate investments in Dubai with its rapid growth of economics. But the pre-crisis year was undertaken as an example.

The second basis of real estate investments reliability was considered rapid growth of demand over proposition.

WhyDubai has presented the list of advantages of Dubai:
• the profit is not taxed. It means that the system can exist only due to its development;
• the most fast-growing economics of the world. The growth is absolutely false and speculative thus the system is to be collapsed;
• Middle East is the isle of stability in the world in crisis. Its everlasting stability is based on oil. But its
overprofits doesn’t provide safety in other branches of economics;
• the occupancy of Dubai hotels is the highest in the world – 85%. But this is the data of fortunable
year;
• UAE economics is strong enough to resist world collapse. This task is being checked during last 4 days;
• impact on the markets of other countries. Most of all Dubai is to influence negatively the projects of
closer towns-resorts in its region;
• global processes. The defaul can cause the return of workers home without any profits. Thus it is to
lead to the poverty in the countries of Far East such as Plillippines and Nepal.

Maria Velikanova
2009-11-30 12:22, Economics.

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