Palm home prices hit new three-year low

Posted by: Geriant Tuesday, 26 May 2009 3:49 PM[UAE] - UAE

The adage "don't shoot the messenger" is in play here, because so many vested interests are smarting. As Dubai property values evaporate there is a trend towards attacking the scribes brave enough to call the market. AB, unlike its toothless competition in the Gulf who toe the government line like moths to a flame, actually reports the facts that are available, and any serious investor should take heed from the reporting. In a disaster like this there are no real "experts", and absence of fact and real research means taking people at their word. Too many are talking up a doomed market, when one honest word from on high could staunch the flow of investor blood. Keep going Anil.

Posted by: AW Monday, 25 May 2009 7:31 PM[UAE]

I wonder if Mr. Bill ever complained in 2007 when every ?single? agent, speculator, flipper (all experts here) and their plural forms claimed that prices will still double from those levels. No one complained when there was insane exuberance in the UAE real estate market. Now when some sanity seems to be coming back, the same does not get appreciated. The fact that 1. There is no dependable / believable market research or information available in this market, 2. The fact that there are no regulations here in this market, (laws change like a monkey on a swing) 3. The fact that (sadly enough) your palace of dreams was nothing but a colorful brochure (off plan), 4. The fact that your ready property does not give you a medium term (forget long term) visa, You will find people sharing their individual experiences and other following / believing it. I won?t claim to have spoken to any expert. But I have looked around for suitable house for end use. Believe me not one agent even asked me if I was a cash buyer or need a mortgage. I was given the best of attention & time by all the sales agents and buyers with no questions asked. Not even what?s my budget! The reality of the state today is that there are no buyers. Only those who have some millions to spare. The full page advertisements in Gulf News by individual investors claiming why is it a right time to invest and that they can be contacted on the phone / email for more perspective. The hype around this auction of 3 / 4 properties and how it may represent the average market value. All these silly measures are desperate attempts to talk up the markets. If AB is publishing reports that Palm prices have dropped around AED 800 / sq ft, if Aldar CEO is stating that prices will continue to remain depressed, if StanC is saying that job losses will continue, whats wrong with Mr. Bhoyrul adding some of his own perspective. Even if it after speaking to singular person! Didn?t most people invest in UAE property after knowing another individual who made his / her first million? I am really sorry Mr. Bill, if you have made such a mistake which most of us seem to have made. But wasn?t the over hyped UAE real estate price a ?sensational rubbish??

Posted by: Minumaster Wednesday, 13 May 2009 4:18 PM[UAE]

I agree with Mr. Zia & Mr. Rupesh's views. The same thing I have been telling my friends who were keen on investing in Real Estate here. I used to tell them that this boom is only a bubble and can crash at any time! Those who will hold the properties for longer period will be losers and their money will be blocked in the concrete! This is what exactly is happening now! The very fact is that, the so called Real Estate Boom was fake. It was mainly created by short term gainers and (may be) greedy real estate brokers, which lured other greedy people into this trade and only a handful of real investors to invest in these properties. Now, since the short term players have played their game, reaped the fruits and vanished (or say returned to their respective places) the real investors are stuck with the Concrete called "Property". Every day we read in the print media that the real Estate price have fallen to "x" % etc. etc., But where are the buyers ?? And why one would think to buy a Concrete Structure of Dhs. 1 million+; which is more than US$ 273,973/- or GBP 179,000/- for which I am sure one may get better deal(s) in one's own home country; where one has not to struggle to obtain a VISA to enjoy the benefits of his/her investment! Additionally, here one has to pay the Developer the "Maintenance Fees" on per square foot basis per annum which is also becomes a sizable amount, and often equal to the annual rent of the same size of property elsewhere in Dubai! So why BUY why not stay in rented place ?? Even the visa part is tricky! A visa with EVERY property was announced first, and now it has been announced that investors will get 6 months visa, that too will be based on the price of the property, OK, which Price ? Purchase Price or Current Market Price? What will be the criteria of Property?s valuation? What about investor's family's visa(s)? Why only 6 month's visa? Won't it be better to introduce a long term, say 5 - 10 years' multiple entry visa for the investor and his immediate family members (at least wife and children, if not "Aging" parents!) so that it gives some assurance to investor about the continuity of his association with this land and can establish the lost confidence of the investors and attract other investors too (at least the ones who have the idle funds to invest) . This can be ONE of the solutions, if not the only solution, to save the dying property market. And mind it, the "Property" which we are talking about is ONLY for "Classes" and not for "Masses" , ? so?.., upper middle class or middle class people, please stay away and be happy with your rented places of living (if you can afford them) ...... and yes .... Lower income people, you just confine to your "Bunk Beds" .... These properties are not meant for you (even if you are the one who might have put your sweat to create these structures)! ???.. But hold on guys ?.. June / July are approaching ?.. Just wait and watch!! ??.. This may be the BEST time for investment, IF (& IF) someone has got surplus money to put in these P R O P E R T I E S!!

Posted by: MK Wednesday, 13 May 2009 10:10 AM[UAE] - United Arab Emirates

The recent Law by Federal govt. regarding residency is not enough to bring back the investers. It is good that things have moved a bit but is not enough. Who will invest Dh 1 million for 6 months residency. And every 6 months you have to pay again for renewal. A family of four in that case has to spend about Dh 12000 pa. which is not realistic and justified. Govt. must consider at least 3 years on a more reasonsable cost of visa and then see... People will start coming back. Otherwise it will be difficult to recover.

Posted by: Victor Tuesday, 12 May 2009 5:26 PM[UAE] - UAE

The whole problem is the investor/buyer confidence and uncertainty of regulatory laws. When develpers publicly advertised of residency whole lot of people went for real estate who had stored money expecting high and quick returns never thinking risk and returns are work in inverse order. One single law of longer residency and you will see real estate will sell like hot cakes.