Real estate companies are always under suspicion across the globe because of the questionable land bank valuations which always look inflated and unrealistic.
The world over, the real estate prices have been crashing badly in the last one and a half year, and almost all the regionally strong real estate companies have seen their share prices crash like hell in this period. For example, the largest property developer in Middle East, Emaar Properties-Dubai, has seen its share price crash by over 50% during the period.
So is the case with all the real estate companies across the globe, including those in US / Europe and Asia.
Now, Emaar Properties shares have tumbled by another 10% yesterday, due to their plan to merge with three loss making Dubai-Government owned real estate companies.