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Dubai’s property debacle continues
A renegade real estate agent was caught, Nakheel slashed 400 jobs, Deyaar's former CEO is accused of taking bribes and Dubai's property sales are half of what they used to be. What's next?
July 9, 2009 2:44 by Dana El Baltaji
Meanwhile, Nakheel announced it has axed a further 400 jobs over the course of two weeks, reported The National on Wednesday. If you count Nakheel’s redundancies in December 2008, the developer has slashed 900 jobs in eight months.
To be fair, however, those made redundant were given a six-month pay package.
And in other real estate news, Dubai’s property sales and the value of transactions dropped by almost 50 percent during the first half of 2009, according to REIDIN.com, a property monitoring research company.
“Earnings across the UAE real estate board are likely to be weak for the second quarter,” said Chet Riley to The National, an analyst at Nomura Securities, in reaction to the data. “We are seeing some signs of stability in the underlying market, but ‘crunch’ comes in the second half of the year, when a number of developments are due.
“Any development delays, which we are starting to see, will not allow developers to recognize sales revenues and may lead to further analyst earnings downgrades,” Riley added.
When will Dubai get back to business as usual?
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