Luxury Real Estate News Roundup 07/06

The Great Recession and the Real Estate Bubble

Between 2000 and 2006, the real estate market was booming due in large part to easy mortgage terms. Countless people bought into the market driving prices up and spurring major new home construction. In late 2006 the market crashed. Borrowers began to default on loans they could not afford. Lenders began to foreclose on the homes and found the homes to be worth less than owed. The crises affected every part of the US economy causing arguably the worst economic depression in the Unites States since the 1930s. Examiner

Indian Luxury Property Developers Raise Prices in the Face of Falling Demand

Several real estate developers are stopping discounts, have stalled further price cuts, increased prices in budget housing projects launched recently, and are returning to revive high-end projects. Property experts said they do not expect this to be reflective of demand returning strongly to the housing market and think it is just that some developers are testing the waters with higher prices. LiveMint

Saudi Property Fund Eyes $1 billion UK real estate deal

An investment manager part-owned by the Saudi royal family is planning to invest a chunk of its assets in UK and US commercial property, according to Prince Faisal bin Salman bin Abdulaziz, its chairman. The Peninsula

Emaar Properties closes Algerian Offices

Dubai-based developer, Emaar properties saw another slide in share prices after closing it’s offices in Algeria due to “a lack of progress which is beyond the company’s control.” The action came after announcements that Emaar will be merging with several other government-owned developers. Dubai property investment

In San Jose’s east hills, owners at The Ranch ‘had it all’ until housing bust

When Virgil Acacio drove his new Mercedes through the grand entrance towers of The Ranch On Silver Creek in early 2006, this real estate broker who had just quintupled his income felt like he was passing through his personal Arc de Triomphe….. Like cinders from a fire, foreclosures and short sales are landing on the mini mansions with double staircases, triple-tiered fountains and four-car garages. Mercury News

Manhattan Luxury Real Estate Prices “Fall off a cliff.”

Manhattan luxury real estate prices fell between 17 and 29% in the second quarter of 2009. The luxury segment is defined as the top 10% of the market by price and saw bigger falls in value than the total market. The overall market saw falls of between 13 and 19% from last year’s prices and sales volumes are at 50% of 2008. Manhattan Luxury Real Estate

Cape “Baroness,” faces foreclosure on luxury home

A socialite from Constantia who calls herself a baroness and is feared to have fled the country under a cloud of close to R50-million of debt now has a provisional sequestration order against her……Standard Bank took Von Maltzan to court for R45.5m owed on the luxury property, a Range Rover and a credit card, among other things. The court ordered Von Maltzan to repay the bank and instructed the sheriff of the court to attach her immovable property. IOL