floor value and a loss of 20% average rent when comparing to the peak in 2008 clubbed with the stringent bank policies has put down new foreign investments.
The crisis relates to Dubai World, which is a holding owned by the Dubai Government that manages some 90 entities and expands well beyond the national boundaries. The organisation has a major role in the direction of Dubai's economy with regards to the way Dubai is perceived by the outside world. In November 2009, the Dubai World delayed a payment of 26 billion USD for six months and this shock the confidence of investors holding the government debt, and had a domino effect on downgrading the credit rating of several governmental entities across the world [10] .
According to Proleads, a Dubai based research firm, approximately 52.80 percent of the total civil construction projects portfolio of the UAE, most of which is in real estate worth a combined value of 582 billion USD is put on hold while a further 698 billion USD is operational. The negative impact of the recession is still prominent with the cancellations on the rise, but a significant thing is that the government continues to invest on the infrastructure development by allocating 16bn AED from their annual budget even in 2009.
The surge in inflation in the latter half of the decade shows a trend towards a steep rise in rental and housing category which contributes to almost 36.1% of the Consumer Price Index. Towards the end of 2008 it had a considerable increase of 17.5% comparing to the previous year and over all of 11.9% from 2003 - 2007. The economic growth due to the increase in FDI and development in construction and property market has impacted in a huge flow of expatriates. As the consequence of this the housing rent has risen steeply.
With the growing population it anticipated to that there will be a demand for 4.20 million moderate housing spaces in India [11] . For this over 150 overseas private equity funds have teamed up with real estate developers in India [12] . The industry experts anticipate the realty sector will attract $108 billion USD worth of investment by 2012. The rationalization and liberalization policies of the country has created an opportunities for foreign investors and NRIs to invest in India. These situations create a demand of almost three times as that of the supply.
Conclusion 结论
The falling crude oil from USD150 to below USD50 a barrel eased the inflationary effect of the consumables like food and raw materials which were the main driver for the economic downturn in 2009. This acts as a buffer for the tax burden, significantly increasing the purchasing power of people. India houses a major population of world's poor people requires more complex housing term since the present terms will be unacceptable to them.
Points..
On December 6 2009, the Reserve Bank of India cut interest rates for the third time in less than two months, bringing its repo rate down to 6.5% from 7.5%.
The contribution of the property market and construction had grown over all from 15% to 18.90% during the past decade.
Porter's Five forces.
