Bahrain
Kuwait
Oman
Qatar
Saudi Arabia
UAE
Property prices on Palm Jebel Ali fall by up to 40%
by This email address is being protected from spam bots, you need Javascript enabled to view it on Thursday, 6 November 2008
Page 1
Results 1 to 5 of 5
Posted on Sunday, 9 November 2008
Welcome to the Dubai nightmare
Posted by michael at 15:23 UAE time
Five years into the making, we finally see this massive buble burst. After stalling a few years after the first DFM stock crash in 2005/2006, Dubai real estate is going to get what it deserves. A speculators' dream has come to an end and as the big guys liquidate, the end-user investors will take the beating... Same happened in the stock market in '05-'06, the speculators ran and the little guys got hit!
The Dubai real estate market and Dubai as a whole has been marketed as a "sure thing" a "dream"! I am absolutely sick of all the propaganda/pr in the UAE newspapers regarding the strength of the real estate market and Dubai as a whole. "Expert" PR articles written by real estate agencies send shivers up my spine as do the recent declarations by some developers that the Dubai real estate market will never fall! The real estate market has what's coming to it as it was build on greed and no regulations... many will soon realise that they had bought into a nightmare rather than a dream.
CLICK HERE TO POST A COMMENT
Posted on Friday, 7 November 2008
The downward pressure is YET to come ...
Posted by Moazzam at 19:30 UAE time
The Dubai market fundamentals are firmly anchored into globalisation. Even without the global recession, the property market for new starts was down to single digit growth. Now with the recession, there's no escaping gravity! First the real estate stocks have been hit - Emaar is 60% down and Amlak and Tamweer have announced merger.
A slowing domestic economy will lower rental yields and by extension, property prices - Morgan Stanley predicts 10% as early as 2010. And if this trend persists, cumulative decline by 2012 could be over 30%.
On the demand side, this is primarily driven by Iranians, Pakistanis and former Soviet states. These states are in a crunch - Ukraine and Pakistan have reached out to the IMF and Iran hit by tumbling oil price. A crunch here so there is every reason to believe the demand will further slow down.
CLICK HERE TO POST A COMMENT
I dont think so!!
Posted by SR at 13:20 UAE time
All this while these property chiefs insisted that real estate market is not affected, it is still at growth stage, hence prices will continue to soar, demand is outstripping supply etc. etc. etc.
Finally, they admit that prices in an iconic development has dropped by 40% over the last 02 months, but the best part is that it will pick-up in December!!!
Well, I dont think so, if the drop is this sharp, it will fall further over the next 06 months, simply because global economic indicators are not going to be any better. This I guess is an economic reality that some guys predicted on this forum over the last 06 months or so!
Finally, they have also accepted that Dubai can not operate in a vaccum, they are part and parcel of the global economy!
The chances are that real estate prices will fall and continue to fall and remain flat until the global economy recovers, which might take another 02 years.
I guess it would be worthwhile if Developers / Real Estate Brokers look at contingency plans rather than launching new projects! Welcome back to the real world!
CLICK HERE TO POST A COMMENT
advertisement
Posted on Thursday, 6 November 2008
Palmed down....
Posted by Obelix at 15:00 UAE time
The plot thickens as they say. Upto 40% down in two months and yet experts quoted here say they will rebound in December which is 3 weeks away. Hmmmm , interesting.
At this rate, I think I'll take a dozen. Now, where is that cheque book.
CLICK HERE TO POST A COMMENT
still in denial
Posted by Paul at 14:06 UAE time
Those denying the bubble said it would never happen here. Then they said if it did it would only be small falls. Now they are implying the falls are limited to off-plan. They are in denial.
Once off-plan prices crash like this, developers will have to suspend or cancel projects. They cannot pay staff to do nothing so there will be large numbers of people made redundant. This will feed through to reduced demand for housing and rental properties, fuelling the crash.
A building frenzy fuelled growth and jobs, and this put pressure on rents and the housing stock. Now this will all work in reverse and a sudden crash in construction will undermine rents and house prices. And remember, crashes are always quicker than the growth of the bubbles that preceded them. Beware!
CLICK HERE TO POST A COMMENT
Page 1
Mobile
