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Dubai house prices slump 8% - Colliers
by This email address is being protected from spam bots, you need Javascript enabled to view it on Tuesday, 13 January 2009Posted on Saturday, 17 January 2009
The Economics .... ??
Posted by Ignorant Me at 18:41 UAE time
I am confused but having said that I am in a perpetual state of confusion ever since I landed in Dubai.
Just as soon I start of grasp the 'can do' I am told it has been reversed to 'no can do' only to be followed by a 'probably can silently do'. So do excuse me.
My confusion now lies in the fact that a fair amount of projects have been shelved (so nothing new on the market), empty apartments are quickly filling up as people have no confidence or money to buy. Quite a few of the new projects do not have electricity connections, etc. etc.
So come 2010, with the continuous influx of people into the UAE, why should the rents/selling prices drop? I would reckon they will drop no further, steady and then slowly start climbing.
Another factor is Dubai has no more beach property - so why would owners of the only property directly on the beach i.e. JBR - think their prices will drop?
Perhaps Collier's should spend a little more research time before issueing hard to believe or, worse, outdated reports.
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Posted on Wednesday, 14 January 2009
The Economics of Supply and Demand
Posted by Saleh at 14:10 UAE time
Let us be realistic. The increase in prices has mostly been driven by speculation; this had created a bubble and there is no way that the 'stellar growth' can be sustained sooner or later prices have to obey the economics of supply and demand and head southward. when will it hit the bottom? It is anyone's guess but I suspect we we still have a long way to go; taking into consideration the global recession and capital flight from GCC countries, we should brace ourselves for the hard landing which is still to come by 2010.
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The best expression
Posted by Property Guru at 10:11 UAE time
The best way to decribe Dubai real estate market managment is - Oh God forgive them, they don't know what they are doing.
The issues are very simple to address, but someone somewhere just don't want to acknowledge them. It is like s suspense movie where you keep guessing :-
Residence visa or not? Rent cap or not? Can I stay in my property or not once it has been rented out? Is there any service charges limit on developer or not? Can a property owner audit the service charges accounts or not? Is there any penalty on developer for delaying beyond agreed delay period in contract or not? Who will handle rental disputes - RERA or rent committee? Why service charges have no regultion but rentals have a 5% gap? What does an owner do if Emaar or Nakheel simply double the service charges but lanlord has to keep the rent same for 2 years?
Anyone listening? NO. Oh god again forgive them.
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Dubai house prices slump 8% - Colliers
Posted by UK at 09:58 UAE time
In DEC 2008, Colliers "predicted" in AB that "house prices in Dubai set to fall..."when in realty they had already dropped significantly. When many readers raised this issue, the author of the report had to openly admit that the report was prepared months earlier and published in DEC when the atual situation had changed considerably. Now we have this new "finding"from Colliers which again seems to be far from reality. It is time for Colliers to provide another explanation. And as far AB, they should seriously consider if such priority be accorded to Colliers reports in future.
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Residency Rules
Posted by ALEX.A at 07:37 UAE time
The government was told that the residency rules are being abused. People are obtaining residency for their whole family buy simply buying a studio and then rent out the studio and do not even live in it. Well, instead of coming up with a wise solution to curb the abuse, they simply said no more residence visa!!! This is not only a misrepresentation (as the companies promising the residency were mainly government owned companies like EMAAR), but it simply put a major lid on investor confidence. How can someone spending 10,000,000 DH in this country not be allowed to live in their own house??!! This is absurd. Would anyone in the world buy any property anywhere in the world that does not allow them to live in it? Absolutely not. The first thing the government MUST do is put the confidence back in investor's mind and that starts by giving them the facility to live in their own place. That is not even enough. They should come up with a long term plan that even allows people to become citizens. They can do the same thing in Canada and obtain residency right away and obtain citizenship in 3 years at much lower prices!
This is from a stupid investor that has bought over 15 properties!! I know, it is my own fault.
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Posted on Tuesday, 13 January 2009
8%
Posted by kumar at 01:10 UAE time
Colliers ! well come to Dubai.
Hope you people will come to know the real rates of the market & study the prices & give the correct information to your investors as they have too much to loose or gain on your trust.
good luck to your investors & customers.
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colliers report
Posted by nhea jmani at 20:36 UAE time
IN WHICH WORLD IS COLLIERS LIVING - 8% - ANY WAY ZERO
HAS NO VALUE
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Realistic Environment
Posted by Muhammed Azeem at 18:34 UAE time
It should be accepted as a reality that, any country, any race, any religion, any society is a combination of beggars to Kings. We can never create a city with an ARTIFICIAL super rich, handsome/beautiful, driving limos/sports car kind of people. The people come here make money and save money in different brackets.
So a modern cosmopolitan city should be planned in such a way to accommodate all income group people.
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House price decline
Posted by Property Guru at 15:07 UAE time
What makes these consultants worthy of publishing comments in all the prominent publications? they have no clue of what is happening. The prices have fallen from 25-40% across the board. It's seven years now since the market opened yet the government can't tell clearly that a residence visa will be given or not? or at least a firm statement of rules and procedures. Even this is a matter of speculation in Dubai, the whole market was anyway under specultion mode.
The developers are charging service charges without any limits on them but rentals are governed by rent caps. Who can affort to buy and maintain an apartment after paying AED 30 per sq ft as annual charges. It is as good as paying rent for your own apartment. Such funny thing can happen only here.
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Prices are still too high
Posted by Aadil at 14:18 UAE time
Even after the decreases, prices are still way too high.
Entry level should be AED500 per sq ft. Average price should be AED1100 per sq ft.
Developers need to stop ripping people off.
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realestate
Posted by mostafa at 14:18 UAE time
Price of real estate in dubai or UAE is crazy ; AED 3M for 3 bedroom townhouse in the desert sand has no sense , for that price you can buy a 5 bedrooms fantastic villa with seaview in most of the european rivieras, realstate speculation is really crazy in dubai ...
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25% property price decrease!
Posted by robert at 13:39 UAE time
I fully agree with the Consultant prices in the springs have gone down from 4 - 3 million DHS in the past 3 months. It's time to face reality and stop watching "Feel Good shows" like Dubai One news @ 830pm each evening!
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8% loss???
Posted by Unhappy chappy at 13:21 UAE time
What a joke of a figure. Do you just make this rubbish up. Nobody is buying, nobody can get a mortgage, no body wants to buy even if they could because your told what you can do and how you should live in what you bought. I would buy a villa now if i could share it with my friends to help pay the cosy but then i would have to do it with no electricity or water. Your just making this place worse for all concerned. Write something thats true, even if its bad, 6 months down the line they will only complain about how you lied to them anyway.
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Very true
Posted by John Doe at 13:07 UAE time
I couldn't have said it better myself, such preposterous figures only add to the aggravations of others and 'boost the morale of greedy investors!'
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the volumes speak er... volumes
Posted by paul at 12:37 UAE time
The beginning of a price decline is always the period of denial. Buyers won't pay the high prices, sellers are in denial and won't cut. The end result is a massive fall in the volume of sales (which is what we see above). The big price falls kick in later, although there is certainly some panic selling going on in Dubai already.
We saw exactly the same in the UK at end of 2007. But month-on-month price falls have continued to accelerate there, and are bigger than ever more than one year later, with no end in sight yet. Those in Dubai expecting a quick wobble and then back to business as usual in a month or too are completely deluding themselves.
Colliers are deluding themselves if they think rental demand will quickly pick up. House price crashes are not caused by recessions, on the contrary, they cause recessions. The UK, US and Europe all went into recession as their property bubbles collapsed, credit dried up and jobs start being lost. Dubai, despite what some like to believe, is not immune to the laws of economics. A recession is inevitable, and costs like rent must fall if competitiveness is to be restored. Dubai simply cannot afford to be more expensive than London at a time when overseas investors are pulling out and tourists are staying at home.
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