By, Meredith Anderson
With the US market already unstable, the recent news of Dubai's state-owned investment arm-Dubai World and its reconstruction of debt has come to every ones attention. It shocked many how a city so far away could have such as substantial impact on the United States real estate. Dubai faces $59 billion dollars that it has no way of paying back.
Since the news was realized on Friday The Dow Jones U.S. Real Estate Index decreased by 2.9%. That is nearly twice the decline of broader U.S. market indexes. "Dubai may have to unload some very prestigious properties at distressed prices and this will drive the price of all commercial real estate lower," wrote Richard Bove, a banking analyst at Rochdale Securities in Lutz, Florida. Dubai World is an investment company that manages projects and business for the Dubai government. Dubai World is involved with many large real estate projects in the United States including CityCenter in Las Vegas and other Miami and New York resorts and hotels. "This downturn has had more of a global impact," said Tony Ciochetti, chairman of Massachusetts Institute of Technology's Center for Real Estate in Cambridge, Massachusetts."As I try to explain to my students, with a global economy, we're all attached at the hip financially in some way, shape or form," he added.
Sources:
http://www.walletpop.com/blog/2009/11/28/why-dubai-should-matter-to-you-u-s-real-estate-could-take-big/
http://online.wsj.com/article/SB10001424052748704498804574562232398218054.html
http://www.reuters.com/article/ousiv/idUSTRE5AQ4G620091127
This was the talk of the town as Dubai was building all these high end places. Now that there is a downside and there is not enough money in their economy who knows. Hope is going to be lost in them. This article was very good and captured the main topic in the news.
ReplyDeletePosted BY:Sara Sindelar
with so many debts, empty buildings & unsold commercial units in dubai, the economy going down the drain, foreigners abandoning furniture, cars, unpaid loans behind, lack of gas to fuel power plants leaving them struggling to generate all the electricity they need for those white elephants, hampering business and damaging their growth prospects, I wonder what is going to happen to Dubai in a few years, probably a dead end.
ReplyDeletemilton
great site
ReplyDeleteI needed to thank you for this fantastic read!! I certainly
ReplyDeleteenjoyed every bit of it. I've got you saved as a favorite to look at new stuff you post…
Also see my site > funnymariogames