I read an article in the Times today, about around 3000 cars that have been abandoned at the International airport in Dubai, as people flee the financial problems there. You leave your flashy apartment, chuck the keys at your bank manager, drive to the airport and leave the BMW (on finance) at the airport, and bugger off back to the UK or wherever it is that you are from.
The property boom in Dubai (compared to Spain and elsewhere) has happened over a shorter period and with more pronounced growth rates. It seems that because of this they are coming crashing down to the ground so much quicker too.
Spain has decades of holiday destination experience and holiday home ownership behind it. Plus a mortgage and banking system that, whilst pretty archaic, is developed enough to at least be in a position to lend.
The mortgage market in Dubai has barely got off the ground, before the shit has hit the fan. All those with buy to lets and offplan apartments that had been hoping for 70-80% of inflated valuations are going to be in trouble. They will be lucky to get 50-60% of purchase price at the moment. Consequently many will just walk away and lose their deposits, hence putting more empty, repossessd units back into a falling marketplace.
I have been trying to help some clients to mortgage their place in Dubai, and it's just not possible. Plus, most lenders would only lend on certain developments and for certain builders. It's highly likely that this wasn't mentioned by estate agents at the time of purchase.......