Morning round-up: Sorouh rethinks Reem Island project


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Sorouh Real Estate is looking at rescheduling its Shams project on Reem Island in Abu Dhabi and is cutting prices at some of its developments because of slow sales, The National's Bradley Hope reports. The efforts to streamline the company come as it announced second-quarter earnings of Dh151 million (US$41.1m), a 75.5 per cent drop compared with the same period last year.

Thirty-five per cent is a manageable recovery rate when it comes to mortgage defaults and 50 per cent should be considered an excellent recovery rate, according to Chris Green, Managing Director at Independent Finance, a specialist financial services company. "The other half will probably result in repossessions and auctions and the lenders will recover more of their losses over a period of time," he told Emirates Business 24/7.

And Arabian Business reports that Dubai rents continued to plunge in July, though a few areas like the Arabian Ranches saw "marginal rent growth" as people moved into bigger properties.