alfrombarking

well...

http://www.telegraph.co.uk/news/worl...ring-boom.html

Millhouse

It does make me wonder. The high running costs of these buildings (power, water, maintenance) will probably not be covered by the rents. Mothballing might be the only solution.

the funny thing is we have all this capacity in Dubai and yet only 150km down the road Abu Dhabi is building the same...

Hello.Kitty

I don't think it's rocket science that they'll have to let, for example, the unfinished Palms, Waterfront and World go back to the sea, in favour of consolidating what's being developed on terra firma.

Still, it sucks big time for the investors... I wonder how thy'll react to that idea. Talk about toxic assets!

JB22

so what are prices like now on the palms, and what sort of villas do they have?

lionheart

Hopefully they will knock down all of Jumeirah Beach Residence and start again. Its such an eye-sore.

Norm_uk

They should focus on renovating older buildings, getting better parking and easier access rather than build new crap that will just create an even bigger oversupply.

Maybe a few libraries, schools and theatres wouldn't go amis in the concrete jungle too...

Interesting how Dubai's vacancy rate is around 38% and London's City and central areas have never gone below 16%...more egg in the face of all the twits who used to tell me Dubai's property market is simply the best in the world and will never fall.

N.

Millhouse

There must be a typo in this, and the article. It should say never gone above 16% surely...

Hello.Kitty

your wish may come true - it's the shoddiest workmanship I've seen in a good while and is riddled with costly "issues" that are only ever going to be passed on to owners for as long as the development is standing.

Maintenance charges are getting higher too - I know that our building's charges represent about 20-25% of the current potential rental income.

NorthernLad

One of the Shoreline buildings (18 I think) on The Palm has never been occupied. It must be fit for pulling down now.

co durham boy

Most of the residential developments in Dubai are shoddy and of poor construction standards ,there was more effort put into billboards and adverts than bricks and mortar.

As the these buildings age with time and in this environment that's very very quickly the charges will sky rocket and that will be passed on to joe bloggs.

If there was a gold medal for greed Dubai would be Olympic champions .

Norm_uk

Yeah I think so...that's what happens when I start posting in B.E.'s forums before I finish my coffee enemas in the morning

N.

Meow

Agreed. Word is that Sheik Mo thinks they are ugly too, so we may be in luck.

shiva

wonder who gave the go ahead for it all to be built then?

weasel central

Its not confined just to Dubai, the same ideas have been proposed in Europe and the US. Too much of a property overhang on the market kills the value of all the remaining property.

Its not financially viable to maintain empty properties, knock them seems like the best solution. But not to rebuild further white elephants, they ought restrict the planning for years before allowing any more speculative building work.

K8-notlate

That's what you get when you take inspiration from a Hollywood movie and use that as your mantra