| From Theherald.co.uk: Fears are growing that one of the richest regions in the world is on the brink of a property crash. Dubai's once-buoyant property market is in danger of sinking as lenders in the oil-rich region become more cautious. Despite a £7.39bn emergency lending fund issued by the Central Bank of the United Arab Emirates, investors remain sceptical.
The Gulf's property boom has succumbed to a reality check, according to analysts. Richard Rodriguez, the former chief executive of Emaar Properties in Dubai, said: "Either the pace will drop or the prices will. Both cannot be sustained in these conditions." The Gulf's property boom makes it particularly vulnerable to a credit crunch, with massive development projects funded through loans. With a decrease in the amount of foreign speculative money going into the UAE, lending cash between banks has dried up, sparking the same clamour for liquidity that has affected the UK market..... Full Article: Source
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