Stars including David and Victoria Beckham, Michael Jackson and Brad Pitt are losing £80,000 A WEEK as their luxury Dubai villas crash in value. Celebs who bought the properties in their droves over the last few years have seen prices halve, with pads worth £3.2million in October now on the market for £1.6million. And with the world’s superwealthy cutting their losses and selling up, Dubai’s bubble has well and truly burst.
The oil-rich Gulf state courted the famous for its Palm and World Islands developments, a series of artificial peninsulas in the Persian Gulf. Among those who bought there were Angelina Jolie and Brad Pitt, England cricketer Andrew Flintoff and ex-Formula 1 champ Michael Schumacher, who owns a £5million slice of “Antarctica” in the World Islands. England footballers were some of the keenest buyers.
When the squad stopped off in Dubai on their way to the 2002 World Cup in Japan and South Korea, they were shown plans for Palm Jumeirah, a vast, palm-tree shaped island made from sand dredged from the seabed. Beckham, Michael Owen, Ashley Cole, David James, Joe Cole, Wayne Bridge, Gary Neville and Paul Scholes put down deposits on £800,000 sixbedroom villas at a special rate. They immediately looked like unbelievable investments, as real estate prices quadrupled over the next six years.
But last October, amid the global recession, Dubai was hit by a housing market crash, which has now cost investors billions. Jack Whisker, of luxury agents Dream Property Dubai, said: “The Dubai market has fallen off a cliff. “The credit crunch hit us suddenly because all the foreign investors lost confidence. “It has hit the higher-value properties the hardest. Fourbedroom villas worth £3million a couple of months ago are now being sold for £1.5million.”
reported in mirror.co.uk
Dubai real estate market is fast recovering.Government has announced lot of remedial measure to uplifit the market..I don’t think,real estate recession will contiune for ever.
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In reply to Dubai property’s comments……It is one thing to be optimistic and another to be over optimistic which I see in your case. The property market is no way near a “fast” recovery. Indeed the Gov. is trying to take actions, but at what point does the action gets implemented is another arguable case.
I am aware of investors who have paid up 50% so far, and the construction is yet to begin. It is what the Gov. does to assist these people will clarify the actual goal of the resort land.
More tabloid nonsense – they haven’t lost anything – no-one does until and unless they sell an asset which has dropped in value.
And the drop in value they quote is from the peak, not from the price these ‘celebs’ paid. Even the figures quoted show they’re still doing very well :
“…put down deposits on £800,000 sixbedroom villas at a special rate….Fourbedroom villas worth £3million a couple of months ago are now being sold for £1.5million.”