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Dubai's Deyaar expects 'high single digit' default rate

Deyaar Development expects customer defaults in the ''high single digits'' across its projects, as the real estate downturn in Dubai continues.

CEO Markus Giebel told Bloomberg in a telephone interview, late Tuesday, that the developer has a ''substantial amount'' of customers on plans that allow struggling home buyers to delay payments.

''There will be a certain period of time we can still do easy payment plans and assist our customers,'' Giebel said. ''But we believe within this year there will probably be a time we can’t continue these plans anymore and we will see the first customers in default situation.''
Back in May Giebel told Arabian Business in an interview at the World Economic Forum in Jordan that he saw Dubai real estate bottoming out in the second half of this year, but added that the company would shift its focus from the UAE to emerging markets next year.

''We think the bottom will be reached in one year, faster than in any other crisis. The reason for this acceleration is government intervention,'' he said, adding that this would be achieved in the third or fourth quarter of this year.

On June 17, meanwhile, Deyaar formally cancelled its Enclave project in Dubai after making a full refund to all investors.

The development was to have been the first residential development at Dubai's International Media Production Zone (IMPZ) and would have included homes, retail space, large play areas and swimming pools, according to the company's website.

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