Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Smiling Bob who wrote (177012)	1/14/2009 12:07:48 PM
From: Jim McMannis	Respond to of 306849

Dubai Developer Delays Work on World’s Tallest Tower bloomberg.com Jan. 14 (Bloomberg) -- The Dubai developer that’s building the world’s tallest tower delayed the project after the global financial crisis halted a property boom in the Gulf. Nakheel PJSC, a state-owned company that’s considering an initial public offering, will resume work on the building in 12 months, according to an e-mailed statement today. The tower, comprising office space and homes, will have a height of 1 kilometer (3,280 feet). Nakheel changed its plan “to better reflect the current market trends and match supply with demand,” according to the statement. “The foundation works are likely to take approximately three years to complete.” Construction companies across the United Arab Emirates are struggling to finance developments and sell real estate after credit dried up and a five-year surge in property prices ended. Nakheel announced a 15 percent reduction in the company’s workforce in November and said it would scale back projects including the 62-story Trump International Hotel on a palm-shaped island in the Persian Gulf. “The project was at an early stage, so it’s not difficult to put on hold,” said Sana Kapadia, an analyst at EFG-Hermes Holding SAE in Dubai. “Even 12 months may be too short a delay.” Burj Dubai Dubai already has the world’s tallest building, which is still under construction. The Burj Dubai tower, being built by Emaar Properties PJSC, currently has a height of about 780 meters (2,559 feet). Emaar hasn’t said how tall the completed tower will be. In October, the investment company controlled by Saudi billionaire Prince Alwaleed bin Talal announced its own plan to build a 1 kilometer building, in the Red Sea city of Jeddah. Dubai opened its property market to foreign investment in 2002. This, combined with low interest rates, fueled a jump in real-estate prices that lasted until 2008. Residential property values dropped 8 percent in the fourth quarter from the prior three months, Colliers CRE Plc said yesterday. The number of transactions fell 45 percent in the quarter, the property adviser said. The decline in crude oil and real-estate prices could make Dubai more vulnerable than other parts of the region, Citigroup Inc. said Nov. 18. The sheikhdom may need help from the neighboring emirate of Abu Dhabi to fund its burgeoning debt, according to Moody’s Investors Service. Dubai borrowed $80 billion to finance its transformation into the Gulf’s financial-services and tourism hub and compensate for a lack of natural resources. It has just 4 billion barrels of oil reserves, compared with Abu Dhabi’s 92.2 billion barrels. Amlak Finance PJSC and Tamweel PJSC, the U.A.E.’s two biggest mortgage lenders, were merged with two Abu Dhabi-based banks in November as part of a consolidation plan, after the seizure of global credit markets shut their access to new funds. To contact the reporters on this story: Anthony DiPaola in Dubai at adipaola@bloomberg.net; Glen Carey in Dubai at gcarey8@bloomberg.net. Last Updated: January 14, 2009 08:11 EST