52% of UAE's construction projects suspended

Posted by: Ametis Saturday, 7 February 2009 10:15 AM[UAE] - UAE

I think that many have confused speculation with investment. Speculators who bought on the ground floor in the early days have made their money and if sensible moved on.. The Property Hype was fueled by speculation, sadly this was not just in Dubai, but also in USA where people who could ill afford the property were given high mortgages.... In Dubai those that worshiped the temple of eternal wealth borrowed money jumped on the gravy train..... That Gravy train has derailed... The market is now ready for serious business............ What the government needs to do to curb speculators is to introduce Tax of 65% on sale of any second property, first property being tax free... Same system as is available in UK and other countries....

Posted by: worried Friday, 6 February 2009 10:05 PM[UAE]

Why is good money being squandered in such a display. Could this money not be put to better use? Im sure readers will be able to come up with thousand ways to put this "up in smoke " money to some much better use. This mus t be stopped with immediate effect unless there is some really good reason to hve the fireworks go on.

Posted by: No Einstein Friday, 6 February 2009 1:18 PM[UAE]

If "Nearly 53 percent of the UAE?s development portfolio, worth a combined $582bn, has been suspended", yet "Dubai-based market research firm Proleads show that of a $1.3 trillion-strong industry, only $698bn is still in operation on active construction projects" how does $582bn suddenly become "nearly 53 percent"? I am no mathematical genius, but isn't $582bn a smaller number than $698bn?

Posted by: Ganesh Friday, 6 February 2009 12:15 PM[UAE] - UAE

Hi, The good news is the traffic within and inter-Emirates is slowly improving but has to go a long way. The effects of global crisis on local life is yet to be felt looking at the way traffic moves, search for parking continues in residential areas and above all the rents are revised upwardly by landlords citing the Rental Index. Unless the situation is affected there won't be a difference felt. Recently the Modern School increased the school fee by 90% and all parents protested. These are the indicators that the economy is going positive for the ones who have money and those who cannot afford are supposed to leave the country. All the speculations that Q2-2009 will be the realistic one seems to be funny because everyone here is looking at increasing price of basic necessities - food, shelter, school, healthcare etc. Best is to wait for next 3 months as someone said if the economy does not start stabilizing in 6 months then it is going in negative direction and recession can be expected after that. Ganesh

Posted by: Neilius Friday, 6 February 2009 8:38 AM[UAE] - UAE

I agree with ColonialB about the fact that property, for the near future, will not figure as an investment. That said this does not define Dubai, it did but not now. The recession will not last forever, this is a fact. A country with a low tax system, relatively cheap housing and commerical premises, excellent schools and transport infrastructure (or will have) and sun in the sky is still a desirable place to live and work. My point and thoughts are that yes its all a bit gloomy now but once a recovery starts Dubai is probably one of the best placed to take advantage. Frankly it has done the advertising all ready all it needs to do is make it clear to the world the crazy rents etc have gone, or will have by then, and hightlight the tax system. People will realise it is a sensible option.