A senior professor at City University's Cass Business School, London, has said that Bahrain's property bubble has officially burst.
According to Prof Stephen Lee, the sector was grossly "inflated" sector and would would now fall in line with prices and growth rates in the rest of the world. He said it would take at least 2 years to recover.
He added that the credit crunch has already hit Dubai where if you work for a property developer you will not get a loan to buy a car. Supply will far outstrip demand, according to Lee.
He said that although the Palm Island in Dubai and Bahrain Bay, for example, will be completed, the wealthy will not invest in them, unless confidence comes back.Read the story here