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

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Marina Terrace, Lake Wanaka is no more

Several projects in downtown Dallas have been canceled or work has stopped mid-flow as the credit crisis arrives in Dallas with a bang. Prescott Realty Group stopped work on the 22-storey “Heritage at the Stoneleigh,” condominium tower in Uptown near Maple Avenue when financing dried up part way through the project. Hillwood, the developer at The Victory Park project, a 43-story hotel and residential tower has also stopped work, and a partially built parking garage and wooden construction fencing are all that remain. Source – Dallas News

More on Luxury Real Estate News – Credit Crunch Does Dallas, Myrtle Beach Developer Halves Staff, Toll Brothers Take More Write Downs, New Zealand Developer Drops Mega Hotel Project and Honda Pull Out of Formula One

King Abdullah Announces Kilometer high Tower in Jeddah

King Abdullah, Custodian of the Two Holy Mosques unveiled and inaugurated the two colossal projects of Kingdom City in Jeddah and Kingdom Tower in Jeddah in the presence of HRH Crown Prince Sultan Bin Abdulaziz, HRH Prince Khaled Alfaisal Governor of Makkah Province, HRH Prince Alwaleed bin Talal Chairman of Kingdom Holding Company (KHC) and Eng. Adel Muhammad Faqih, Mayor of Jeddah and other members of the royal family.

More on Luxury Real Estate News – Saudi King Announces World’s Tallest Tower

Dwindling demand, rising interest rates and high inflation means many well-known Indian luxury property developers are shifting their focus down-market in major Indian property markets. “Affordable housing,” is becoming the new “luxury.”

More on Luxury Property News – Indian luxury real estate developers go down-market, Cityscape Dubai attracts thousands of investors, U.S millionaires choose timeshares over mansions

Underlying reasoning for the ups and downs in the luxury real estate market

There seems to be a lot of ups and downs in the luxury real estate market this week, and if any one is wondering why that may be, this chart should clear things up nicely.

More on Luxury Real Estate News – Gangsters in Montreal – Indian Luxury Property still Strong – Super rich detached from Property Slump and 30 Luxury Homes in Arizona go to Auction

Luxury Apartments in Mumbai

Indians today have a keen understanding of global trends and are becoming rather savvy in terms of their lifestyle expectations. It seems as though “luxury mania” has hit the people of Mumbai. No longer are they satisfied or willing to settle for the run of the mill type of apartments. If you have the money, live in luxury is today’s mantra. Real estate developers are cashing in on this growing trend in the market and you’ll find a number of real estate developers who are catering to the luxurious needs of the people. Moreover this demand for luxury is fueled by the NRI community, who are interested in investing in high end apartments.

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