First Property Developer To Go Bust In UAE

  • 14 years ago
  • Uncategorized


Overseas property investors will shudder to hear that Al Murjan Real Estate, developer of a $3 billion housing project in the United Arab Emirates, has filed for bankruptcy. At the same time Indian buyers are taking up residential opportunities in Dubai


The developer filed for insolvency in the emirate of Sharjah and two liquidators have been appointed, it was the first court-mandated bankruptcy of a distressed property project in the emirates.


As property prices plummeted some 60 percent since peaking in 2008, half of buyers had not maintained payments


Abu Dhabi residential and commercial rents declined in the third quarter as more space became available in the emirate and in neighbouring Dubai, Landmark Advisory said Apartment rents fell 5 percent since Landmark’s previous study was released in July, while rates for villas were 4 percent lower, the Dubai-based property broker said in an e- mailed statement today. The biggest decline was a 16 percent drop in the Corniche area.


The new buyer in Dubai is said to be from India in the first eight months of the year, Indian buyers accounted for almost 20 per cent of the city’s entire residential property transactions, according to, an information company specialising in emerging markets, citing data from the Dubai Land Department.


“Dubai’s property market, after hitting its trough, has good growth potential for investors,” says Sanjay Dutt, the chief executive for business development at Jones Lang LaSalle Meghraj in Mumbai.


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