A look at the Cape Town property market.
Here in Dubai, a place supposedly "immune" to the global financial turmoil, some chickens are starting to come home to roost:* Property prices on the Palm Jumeirah, that icon of wanton extravagance, have already fallen between 20 and 40%.* Amlak, one of the largest mortgage lenders, is not writing any new loans, almost certainly due to liquidity problems.* Most banks are tightening their lending criteria - e.g. 50% down-payment required for purchasing a villa, and some are not financing apartment purchases at all.And you thought Cape Town had a bubble problem!
Thanks for the info! I guess now that Dubai is fashioning itself into the financial capital of the middle east that they can expect all the financial troubles that can bring.
Further to Anon , most if not all banks have doubled the minimum required salary for any loan....also , some banks are not giving any loans to employees in the real estate industry (agents etc).... Interesting but not surprising , probably the biggest prop bubble in the world , rumoured to have grown 5 fold in the last 4 years (no real stats)
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