Bad press dents Brit interest in UAE property

Wednesday, 8 February 2012 11:01 AM

Rows over service fees have surged in the wake of Dubai's property crash

Press headlines of stalled projects and investor groups who have lost their money has put UK investors off buying in the UAE, according to the results of a study by an independent UK-based property portal.

The UAE was one of the most high profile regional markets hit by the global downturn, with property prices dropping by up to 60 percent and nearly half of projected put on hold or canceled. With hundreds of investors who bought into off-plan developments still waiting for construction to start, or news on the whereabouts of their money, the emirates has suffered a drop in confidence.

According to the latest rankings from TheMoveChannel.com, a UK-based independent website for international property, the UAE dropped ten places to 22nd on the list, behind other emerging markets such as Bulgaria, Turkey and Thailand.

"There is no avoiding the number of horror stories that have circulated about the UAE property market, from incomplete projects to developers sitting on funds. These have severely impacted demand,” Dan Johnson, managing director of TheMoveChannel.com, told Arabian Business.

“The media coverage of the Gulf states has also not been hugely positive - in a period where investors are being more cautious than ever, any market that carries a perceived risk is likely to suffer,” he added.

Despite the onset of the Arab Spring and a drop in tourism levels, Egypt ranked just above the UAE, which has sold itself as a ‘safe haven’ as the anti-government protests swept across the region.

"Egypt and Morocco have both fared better. The property boom in each country was comparatively less strong, which makes any subsequent loss of confidence in their property markets less steep. As established tourist locations, they also benefit from familiarity with buyers, which makes them a more reassuring prospect for investment,” Johnson said.

With more than 400,000 listings in over 100 countries around the world, Johnson also believed other Gulf regions had failed to spark interest among British investors.

Qatar, which was awarded the hosting of the 2022 FIFA World Cup and is set to invest billions in infrastructure investment, does not even feature in the top 40 rankings at all.

“Other countries in the region, such as Jordan and Qatar, have not seen a concerted push to promote them as property destinations. As a result, there is a lower level of interest," he said.

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Posted by: PKK Friday, 16 March 2012 10:47 AM[UAE] - Germany

Yes, this has hit the press also in my home country. Unfortunately it damages the reputation of Dubai even more.
For sure, I will continue to rent for the time being as I expect the prices to drop further. The outlook for the next two years remains pessimistic

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Posted by: Red Snappa Thursday, 15 March 2012 5:38 PM[UAE] - Ireland

Seeing as ITV in the UK have just run an edition of the series "Homes from Hell" which happens to feature a couple that were even fortunate enough to take delivery of a property in Dubai to find it less than an asset, then I think the British will remain immune to the further charms of the emirate's property market. As the article implies, just simply too much bad news and unethical conduct to ignore and all heavily backed by proof.

You ask anybody from UK and Ireland now whether they would invest in a holiday home in Dubai and they laugh and trot out observations like, "you must be joking!", "never again!", "once bitten twice shy!" While professional investors say, if the prices come down another 25% we'll consider it.

Not just the Brits, you should read what they say about the standards in the market in 'Bild', 'Le Figaro', 'De Telegraaf', El Mundo' and La Repubblica' or get a translation.

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Posted by: uWmregozLlDNlgKs Wednesday, 14 March 2012 10:39 PM[UAE] - tCVJaGAP

Employing epmeoyles Employing epmeoyles measures the flexibleness of labour laws among varied states around the planet. Some of the tax inducements schemes distributed by the Industrial Development Board of Singapore ( EDB ) include : Trailblazer Industries The EDB may grant lead runner inducement to an authorised industry which isn't being carried on in Singapore on a scale satisfactory to the industrial wishes of Singapore, and for which there are propitious prospects for development. To date, Singapore has signed and ratified all-embracing DTAs with sixty nations, seven limited treaties and four more which are signed though not ratified.

Posted by: Ambulance Thursday, 15 March 2012 5:38 PM[UAE] - UAE

Employing epmeoyles Employing epmeoyles??

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Posted by: Wayne Thornton Monday, 13 February 2012 6:58 PM[UAE] - United Kingdom

I bought a property in Oxford Court through GPD Investments approx 4 1/2 years ago. This was bought off plan, it was supposed to be completed over 2 years ago. According to my contract, when the completion date on a property exceeds 12 months there is a monthly penalty fee to pay by the developer, after 24 months i am entitled to my full deposit back. I have received no monthly penalty fee and have little or no hope of getting any of my deposit back. I have written to the developer, RERA and even the Dubai Courts, the developers have just tried to fob me off, RERA and the Dubai Courts haven't even had the decency to answer. I have correspondance from GPD stating that the studio was also supposed to be fully furnished, have a gauranteed 3 years let in place and have end user finance in place. Apparently none of these now apply either. My contract doesn't appear to be worth the paper it's written on, I will not be investing another penny in Dubai and I urge everybody to do the same.

Posted by: european Thursday, 15 March 2012 4:10 PM[UAE] - Germany

Wayne,
I have a similar experience and fully agree with your conclusion, i.e. My contract doesn't appear to be worth the paper it's written on, I will not be investing another penny in Dubai and I urge everybody to do the same.

By the way, is anybody surprised about the contents of the article?