Rising defaults in Dubai high-end properties

Posted on | December 2, 2008

By REUTERS

DUBAI: Dubai is experiencing an increase in defaults in high-end properties as financing conditions worsen and is likely to see smaller property developers merge, a member of the emirate’s financial crisis committee said on Sunday.

“There are more and more defaults on the high end, if banks do not give mortgages and speculators are high (in number) in the market,” Marwan bin Ghalita, chief executive of the Real Estate Regulatory Authority told Reuters in an interview.

Bin Ghalita said now would be a good time for smaller developers to join forces, and that he expected some to do so. “If you look at the market, a merger between smaller companies would give it confidence. I always support and encourage good mergers in any sector if it adds value to the sector,” he said.

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