The Dubai World restructuring deal allocated a $9.5 billion bail out plan for its subsidiary Real Estate Company known as Nakheel. However many Real Estate analysts are now saying that in the light of current revelations this alone will not be enough to stem the slump in the Dubai property market.
Many now predict that over supply in this market is simply inevitable while the Dubai World restructuring deal has seen to it that Nakheel will now be able to continue with some of its property development this does not quell the overall unrest still evident throughout this sector.
Nicolas Maclean, managing director of CB Richard Ellis Middle East said that while there is some confidence being restored in the Real Estate sector he still feels it will be another year before all the current uncertainty has vanished.
Another Real Estate mogul said that Western fund managers were not looking to buy speculative properties at this time and this is how they are now viewing the purchase of property in Dubai. Most investors are concentrating on income generating assets for the present until the economy stabilizes further.
It will still be sometime before the sector will re-balance itself and many now feel that the Nakheel deal will not be a success in the long term.Paul Holdsworth, Staff Writer, Gulf Jobs Market News