 The recession has hit almost every industry quite badly and the plight of the real estate industry is no different. Changes in the price of real estate have led to despair amongst land owners and buyers as well.
The City Center project in Las Vegas had been one of the most high priced developments in the country wih $8.4 billion being invested in the project. Changes in the price of real estate, however, account for a great deal of loss for those involved. Buyers reveal that with the fall in market value, they are now paying more than the building is worth and wish for the price to either be reduced or to be reimbursed for this loss.
Some £313 million in deposits have gone into the 2,44o unit complex and buyers are now approaching law firms in hopes of recovering their money or looking for a fairer deal from the principal developer of the project, MGM Mirage. Home sale prices in Las Vegas have fallen 30% in the past year, however, MGM Mirage reveals that it has not planned in offering discounts to any new buyers or on reimbursing the earlier buyers as yet.
Via: WSJ
