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Dubai real estate correction 'very close'
by This email address is being protected from spam bots, you need Javascript enabled to view it on Sunday, 28 September 2008
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Results 1 to 11 of 11
Posted on Wednesday, 1 October 2008
Karl...wake up and smell the sewage
Posted by brandaid at 12:06 UAE time
Karl..I have been involved in property marketing here for the past 6 years at a very high level (Marketing Director Better Homes, VP Omniyat, Damac etc) and I can tell you that you must be one of the only fools around that still has your head in the sand....which is better than the contaminated beaches. Yes, a few folks are still buying and flipping locally, but this will be coming to an end very shortly my friend. Everyone I know in this industry that has any commen sense can feel it, knows it and has seen it coming on for the past few months...now with the global banking crisis you will see the non-Gulf based investors running for cover...and since 70% of the market comes from these people..you do the math, sunshine. It's funny how all the people who have vested interests in selling property seem to see no problems..the eternal sunshine of the spotless mind...time to wake up to reality and take a look around you.
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Posted on Monday, 29 September 2008
No one knows!!
Posted by SR at 18:34 UAE time
From all these comments, what I gather is that no one knows what will happen!!! Obviously people associated with the real estate sector would always be optimistic because otherwise they'll be out of business.
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Karl..
Posted by Mohd Ali at 17:21 UAE time
In response to your claims, isnt it apparent that the only ones predicting prices to keep on increasing forever are either real estate investors or owners, why should we take their word for it when they have a very strong interest in high prices? Banks may not be the best sources for predictions, but neither are investors....
Investors in the UK were confident their bubble woudlnt burst, but it sure did....similarly we hear boasts of how prices in Dubai will keep on increasing (from the ones who will benefit from it inceasing...), only time will tell....
Also banks
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Properties prices will never fall back to the year 2000
Posted by Salim ALSuwaidi at 14:47 UAE time
Prices will never ever reach prices which was more than 8~10 years ago.
i remember i was looking for an appartment for a friend of mine in Sharjah, it was not furnished but it was big, 2 bed rooms big hall 2 toilets kitchen blabla all for around 20.000 AED only a year, now see how much does a small 2bed room cost a year.
Maybe after 10years ahead properties will remain the same prices as of today.
No one will do anything about these prices as UAE is having an open policy for business investors here in the UAE
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Really?!
Posted by Karl at 13:03 UAE time
Im amused as to how the only people who predict downfalls in real estate prices are always coming from people sitting at their desks in cushy financial institutions.
I suggest you get some advise from people working in real estate and learn to collate the property parameters for bubble theories... the fact that u mention the world correction/bubble implies a limited understanding of the market fundamentals here whether it be the facts that the largest investor in property is the UAE gov, or other facts such as the fact a bubble happens due to mortgages playing a dominant force in the market. the GCC in general has a mortgage infancy that dictates otherwise and the last thing you will see here is a bubble.
FYI; I sold 2 buildings for 1.7bn last week and ive seen people fighting over property. from where i am standing, you could you use a couple of courses in real estate.. and probably quite few more in banking as its seems you guys are have your own issues to deal with at the moment.
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any correction might be too late for Dubai
Posted by Paul at 11:06 UAE time
Costs have already risen to unsustainable levels for most businesses and many are already downsizing or leaving as they cannot afford to stay with such an unstable and inflationary business environment.
The housing crash might be too late to persuade many businesses to stay. My company is already committed to relocating to a more business friendly economy regardless of what happens in Dubai. The government really needs to do something drastic regarding inflation and costs for non-oil and non-real estate businesses otherwise when the property bust comes, there will be nothing else to pick up any slack.
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Property slump
Posted by Kris Z at 10:58 UAE time
All these so called "experts" with their opinions on real estate market - how does it help people who are looking for somewhere to live NOW, to know that sometime in the future it will cost less to rent/buy a property ??
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Are you kidding me, what assurance!? you are suppose to pay only ...
Posted by Ralph at 08:50 UAE time
the sad fact is that no one wants to hear you, this is how it goes my friend 'the profits belongs to dubai & the losses is yours'... i have invested more than 10,000,000 in what they call it The Dubai-Land-DREAM 'Dubai Oultet Mall & the Academic City' and i'm losing money every day...yet, i'm not suppose to open my mouth, in fact i've been told to shut up and take it with a smile. DUBAI THE CITY THAT CARES, watch out guys...watch where you invest.
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Posted on Sunday, 28 September 2008
You'd think Standard Chartered had better things to worry about!
Posted by Naz Hussain at 16:20 UAE time
So the guy who can't even operate the most simple of banking principles, e.g. answer telephones, bank queues, customer service, customer alerts, oh and saving and general looking after our money - is telling us about the property market. If you want a better overall opinion and some better advice, listen to your taxi driver tomorrow morning. His words can't have any less wisdom in them than these so-called experts in the region's banking industry!
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Oh YES! It's coming
Posted by Aadil at 15:52 UAE time
The CRASH is coming and I can't wait.
With regards to the comment by Vue, this is typical by Gulf Developers. When margins are squeezed, they reneg on agreements, cut corners, or look for any other excuse. This is disgusting because even at these 'reduced' margins, they're still making a greater profit than developers in other countries. Their greed has blinded them. All they can see is the astronomical profit margins on new projects. So they ignore existing projects without realising, their actions will result in their failure.
Want to know why so many 'bluechip' UAE companies are trading at Earnings multiples of 5 and 7 while 'bluechips' around the world trade at around 30? Because the Gulf mentality of build, build, build while ignoring fundamentals is not sustainable.
Take the Real Estate sector. We've heard many times that when demand dries up, development will stop i.e. grind to a halt. Is that a sustainable business philosophy. If developers in the UAE are essentially going to stop building in a few years, how can we value their companies at anything more than short term values.
The Gulf may be rich with petrodollars, but that doesn't mean they can ignore fundamentals.
The correction/crash is coming. Prices will continue to rise this year and early next year as the flop bankers who've lost their jobs in the financial crisis in Europe and the USA, flock to Dubai for the next quick buck. Dubai is a quick buck/wild west/gold rush town.
The crash is necessary to drive out the parasites, get back to basics and restore sanity. After this, Dubai will be a much better place.
The long term future for Dubai is bright but nobody can escape growing pains.
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Vue Du Lac
Posted by SG at 13:20 UAE time
We bought a flat from Al Attar in 2006 and we were told the completion date was in 2007. In 2007, the date was shifted to 2008. We went to Jumeirah Lake Towers and noticed that nothing was started at the site. Our money is locked in with the developer. What kind of assurance does the Dubai government give people whose money has been locked in for more than two years. From what we see, we don't think the building will be ready before mid-2010 -- if they start working now on it, that is. Shouldn't investors be compensated for this delay?
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