Celebrities lose in Dubai real estate

[LahoreEstate]

The Beckhams, the Jolie/Pittses, Michael Schumacher and other celebs are losing lots of dosh each week in the Dubai real estate meltdown. Many U.K. football stars and other monied Europeans bought into the dream that was Dubai - a miracle property market growing out of the sand. Posh'n'Becks and others invested in these trophy properties, rented them out at big bucks by the week and went shopping with the proceeds.

Let's hope there are some sales on, as the luxury real estate market in Dubai and environs has plunged as it has around the world, and there aren't as many tenants forking over those US$100,000 weekly rents. And there's no point selling, as property values have been halved, what with all the foreign investors turning tail and staying closer to home.

In January, Luxist.com reported that the Beckhams, who have a luxury villa on the Palm Jumeirah complex (top photo), were considering purchasing a second property in the Burj Dubai tower (second photo), so it may be that they're doubly exposed. Brad and Angelina reportedly own one of the artificial islands in the out-there development known as The World (third photo), as does Formula 1 racer Michael Schumacher (though his US$7-million island was a gift from Dubai's crown prince Sheikh Mohammed bin Rashid Al Maktoum upon retirement). And it was rumored that Rod Stewart spent US$33-million to buy mini-Britain. Each island in the 9x6-km archipelago reportedly went for between US$15-million and US$50-million, with one asking price hitting US$250-million (back in the glory days of the uber-heated real estate market).

(Photos: top, an aerial view of Palm Dubai, the artificial palm-shaped island, with Dubai in the background; middle, the Burj Dubai hotel with Palm Dubai in the background; bottom, The World, with its artificial islands laid out to mimic the Earth's continents. Credits: Ahmed Jadallah/Reuters; Steve Crisp/Reuters; handout.)


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