BBC video about Dubai real state crash (september 2009).
“The skyline of Dubai, including the Burj Dubai, the tallest building on earth, photographed from the World Islands. Construction of the much-hyped project, an archipelago of 300 man-made islands designed to resemble a world map, helped extend Dubai’s 45 miles of natural coastline to 467 miles, enough for everyone to have waterfront property — or so the brochures promised. The site used more than 34 million tons of rock and 320 million cubic meters of sand (making Dubai, oddly, a sand importer). State-owned megadeveloper Nakheel promotes the islands as “a blank canvas for orchestrating your own version of paradise, and where you’ll discover that the World really can revolve around you.” To some, however, the project represents Dubai’s fundamental flaws: overbuilding and poor planning. Despite prices ranging from $20 million to $50 million, the islands are without power or sewer systems. And while 70% of them have already been sold, development has begun on only one.”
Real State prices falls nearly 40% in 2009 ¡¡¡¡¡¡¡¡¡ (source: FT).
In the famous Palm Jumeirah, “Villa price tags have fallen to $2 million from $5 million, and many sit vacant. Real estate agent James Fox explains that in the overheated market, investors looking to flip properties often purchased houses before they were built; when the unregulated real estate market crashed, some were left with nothing but plots of sand. As anger grew, rumors spread that the island was sinking under the stress of traffic and overbuilding. Fox sees the real estate collapse as “a necessary correction of the market.”
“The government will not release numbers, but it’s estimated that more than 3,000 abandoned cars have been found in 2009, many with keys in the ignition”.
Video advertising on Dubai 300 artificial islands resort.
Tour of Crown prince od Dubai’s garage.
Interview with 3 Dubai economy experts.
Finally, Dubai madness in 11 photos.
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