Friday, December 4, 2009
What does a complete land use and development implosion look like?
This story from the Guardian about Dubai's continued problems gives a good hint:
Creditors of Dubai World are expected to reject a standstill agreement proposed by the company, threatening to drag out negotiations over $26bn (£15bn) worth of the conglomerate's debt.
Just how ridiculous were these various default-inducing development plans in Dubai?
Check out the website for one of the main developers and just try to comprehend all of this being built in a desert whose population is less than 5 million. It really makes some of those crazy (and now essentially abandoned) California Inland Empire subdivisions look like nothing more than a paper cut when compared to the mortal wounds facing Dubai.
What's even worse for those intrepid souls who bought into Dubai real estate during the bubble is that they don't really have bankruptcy over there. Indeed, this story describes how, in addition to losing a ton of money on the post-bubble property, you can also find yourself in the equivalent of Debtors Prison in the Desert.
What a mess.
--Chad Emerson, Faulkner U.