Damac has got itself into a sticky spot over the axing of its Palm Springs project. There are multiple questions surrounding the decision - not least Damac's timing, it was reportedly happy with the project in February - but many will want to know how this impacts the wider Dubai property market.
The biggest concern is that Damac is not an isolated case, but the first (or most visible) sign that cracks are appearing. Are rising build costs threatening the whole market? Is a tightening of the housing market in the US and UK filtering through to the UAE? How will a dip in investor confidence in off-plan real estate play out?
Wednesday, April 2, 2008
Are Damac sniffles first sign of real estate cold?
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2 comments:
It would stand to reason that DAMAC would first feel the crunch as they're the only one of the big 3 (Nakheel, Emaar and DAMAC) that isn't propped up or owned by the Dubai Government - as far as I know, or can learn about them on the internet.
If the company was to go under, it would have serious repercussions across the 16 or so countries in which they are present.
Or could it be that developers such as Damac are fed up with master developers such as Nakheel selling them plots, which they on-sell units in, and then totally change the master plan and 'relocate' the plot.
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