Dubai headed for another slump within 18mths says Abu Dhabi chief

“It will fall, it will correct and this is something we should all expect to happen and I expect it to happen in the next 18 to 24 months"

 

Revealed: Top 10 locations for Dubai's future mega projects

1. Wafi
Price: AED 980,000,000 ($266.8m)
Size: 500,000.00 square feet
Agent: Lannhill
“It’s got potential for anything really, because it’s just open land. You could do a shopping centre, some retail, commercial.” (Agent Gavin McNally)

Tuesday, 20 Aug 2013 4:55 PM
Tools: Email
 
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Posted by: Awi

Ha, the moment property prices start to rise again, the whole 'bubble' discussion starts again. As if we haven't had that pre 2008!! People said in 2006 it was a bubble... And yes, they were right... just the timing was a bit off!

Posted by: Steady

Just reading these experts and all of the earlier one's who steered the likes of Lehmann's into oblivion makes me wonder how people can talk rubbish or be stupid enough to believe their own rubbish, these guys believe their home market experience is bound to replicate here whereas the fact remains that it is the Indian and Pakistani investor set who influences the Dubai realty market and trust me they care two hoots for these "experts"!

One really does not to be a genius to realize that anybody who bought last year when the confidence had not returned would make a windfall if the confidence returned and it did! And it would be stupid to expect to have the prices continue to rise at that level as that opportunity has passed however fundamentals will ensure a healthy ROI on Dubai realty for a long time.

Posted by: Geko

Among all the prediction, the one about ?next correction? would go wrong anyway. In the first crisis, we had cash buyers from Afghan, Egypt, Pakistan, Russia and Iraq ran through floodgate with their suitcases packed up.

Now, the channels are dry after that flood. Especially, after the aids were locked out, recovery would be nearly even utterly impossible.

Posted by: Lover of Camels

In June 2012 for the first time since the crash we bought something in Dubai.

The market was still dead in my view, or was just ever so slightly starting to pick up.

We are little more then a year on from this and we are being told we have peaked?

Surely we are still at the very beginning of an upward cycle?

I know he says there are shorter cycles for emerging markets, but I haven't even had time to finish my breakfast!

Posted by: Yogi Bear

1. Property prices continue to rise from here, as expo win is announced and pressure on housing (from rising population) keeps rents increasing.


2. Property prices end up at 2 or 3 times todays values and are out of whack with salaries and yield expectations. Basically are based on sentiment and no solid fundamentals

3. New projects start completing 12-24 months and pressure starts easing on housing - prices level out.

4. Something triggers a crash. Spike in cost of borrowing, or more dramatically something that causes a 'mass exodus'.

5. Crash halves property prices (bottom of cycle) but as they had inflated 2 - 3 times, the bottom is still be significantly higher then prices we have today.


Does anybody agree with this - sort of?

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