Brangelina crunched in dubai

Even those with A-list bank balances can't avoid the economic turmoil - Brad Pitt, Michael Jackson and the Beckhams have all fallen victim to the dreaded crunch as the value of their luxury properties in Dubai plummet to Z-list status...

Once the superstar of the United Arab Emirates; oil rich Dubai has witnessed extraordinary price growth over the last few years as eager investors pumped millions into the property market, eager to cash in on the boom.

Hollywood heavyweights were also keen to have a finger in the Dubai pie and celebrities galore flocked to the man-made emirate, with some even going so far as to endorse new Dubai developments - Boris Becker and Hillary Swank, you know who you are.

Valued at £107 million, the Boris Becker Tower is built on one of the most prestigious addressed in Dubai, in the Centre of the business district and features 19-storeys of class- A commercial space with freehold titles.

Miss Swank chose to endorse the £289.6 million Aquitainia development in the middle of offshore development ‘The World,' one of Dubai's most ambitious and costly projects.

The King and Queen of Hollywood, Brad and Angelina, reportedly bought a whole island in Dubai - snapping up a slice of The World.

But fast forward a year or so and here we are, slap bang in the middle of the worst economic situation since, some say, the Great Depression.

Dubai has fallen foul of the global recession and has been hit by a massive housing market crash which has cost investors, including celebs, billions of pounds.

Properties worth £3.2 million in October last year are now on the market for just £1.6 million.

According to Ronald Hinchey, Resident Partner at Cluttons Dubai, dire times lie ahead for Dubai.

"The property market in Dubai is staring into a black hole and any hope of a recovery in 2009 is just wishful thinking.

"Company sales were at two or less a month, compared to about 15 during the peak months of July and August last year and mortgage valuations, which peaked at about 250 a month for around 17 mortgage providers, were down to 50 per month," added Mr Hinchey.

Picture by ecb29