Sunday, July 4, 2010

More Signs of Real Estate Woes in the UAE



According to Bradley Hope at The National, Sorouh Real Estate has introduced a "rent-to-buy" scheme for commercial tenants at its Sky Tower on Reem Island.  The plan is apparently designed to "fill out" the remaining 20,000 square meters of commercial space.  Previously, Sorouh had offered a below market rate of 4.99% to first time buyers at its Sky and Sun Towers in the Shams Gate project on Reem.




This follows the announcement earlier this week that Dubai had given Nakheel's Board control over Limitless.    I suspect this is the first step towards combining the two companies as a way of reducing costs as well as adjusting capacity to realistic prospects for demand.

As you'll notice from this article also from The National, Limitless' problems were caused by the "global" (financial) crisis.   On a personal note, I was gratified to see that TN did not use the term "Global Financial crisis" using the SAM stylebook with all lower case letters.  There are some sensitive folks up North as AA knows only too well.

2 comments:

the real nick said...

Perhaps the consolidated company will be rebranded as 'Nakheel Limited' i.e. limited to 'one palm only', as opposed to a limitless number of palm islands everywhere as had been the intention originally.

Abu 'Arqala said...

TRN

My suggestion would be Nukhayl (little palm, singular).

But then I lack "the vision" and sadly that has consistently kept me from greatness.