Is Dubai…. broke?

The Dubai based consulting firm, Walnut Finance issued it’s first newsletter, which summarizes investor’s worries and fears in the present economic conditions.

While calls from Europe or Asia are asking the questions: “is Dubai broke?” or “Real estate downturn?”,  the truth is that a lot of countries would love to be in Dubai shoes today.  The main reason for all the disturbing questions is that the debt/GDP ratio has gone wrong to 105%, while the US ratio is about 117%, Italy has reached 104%, but UAE’s is only 24%.

The Federal Government covers all the extravaganzas of Dubai. While most projects in the UAE are 18 months behind schedule, many only hope that the present stagnation will last that long to let construction companies and developers catch up! Hotels are still reasonably occupied, traffic at a standstill and construction is progressing everywhere.

So is Dubai broke? The financial advisers from Walnut Finance don’t think so and recommend to cash-rich investors to watch the market now and look at opportunities.

The correction of Dubai’s real estate sector is finally becoming real. Big developers are laying off people and scaling back new projects. Secondary prices are said to become bargains, while prices for off-plans remain on the high side and the market is at standstill.

According Walnut Finance the market is witnessing a well-needed readjustment to reality. This is the beginning of a real market where people buy and sell based on facts rather than dreams. This may prove costly for some late buyers, but Dubai’s real estate has a it’s price!

While there is a big drop in individual buying since people who usually need a mortgage cannot get one any more, companies are still coming to Dubai, and office space is at a high premium.

The future forecast remains bright thanks to the unique character of Dubai, represented by it’s incredible projects that will always attract buyers.