UAE property hunters rush to seal home deals

Peter

Well, looks like property prices in the mid to high ranges are about to take a tumble. Good for buyers. Watch out sellers and agents - better drop prices to get your property off the market asap!!

The 50% mark appears to be a realistic pricing rate for most overpriced Dubai properties. Guess this better protects local Banks in case of default - and over 20 years mortgage, there will me many - and they should be able to flog the home in the resale market quickly at that price to recover their money + costs.

Good luck to the Dubai property market. Buyers with ready cash to pay in full are worth their weight in gold right now!!

nabi

DEAR
HI
I NEED ONE HOME FOR LIVIG
PLEASE GIFT ME YOUR HOME
BY LITTLE MONEY

Muhammad Uzair

I was looking to buy a villa by September 2013 as my current rental expires at that time. I have been saving since I came to Dubai i.e. in April 2009. I have saved AED 240000 till date and my wife was planning to sell her gold to make it up to the required level for which the bank is willing to lend. But now I have to wait till 3 to 5 more years to buy the property and keep on paying money for the monthly rental. I think I am just putting money in other people's pocket and not saving it. Hats off to central bank. Another policy which has not been thought through. Can anyone from central bank tell me what I am suppose to do now as I dont have enough money to do the down payment. Take a personal loan and pay more interest.

BritPop

Everybody is concerned about how this is hurting existing buyers, but surely it will help far more future buyers, by preventing a second property bubble, which is already being partly created by industry spokespersons 'talking up' the market?

The U.K. mortgage industry has changed dramatically over the past 40 years. You used to be able to get 90% or even 100% mortgages at one time, but now it tends to be considerably lower.

As a consequence, house prices have pretty much stabilised in most regions of the U.K. for the past few years.

Telcoguy

@BritPop: Yes, finally! I think you got it right. We in fact do not know what will happen in 1, 3 or 5 years because we do not know how many properties are being hold empty by unrealistic sellers
@Muhammad, yes you will need to wait. And maybe it will be good that you think seriously if you want to put your life savings into a property you may be denied access to with 30 days notice
@Stephan, yes that "normal" people is precisely the ones that should have stayed away of the real estate casino, here in Dubai but also in Dublin, Madrid or Tampa. Or Sao Paulo and Shanghai (even if people are still on denial about those two)

Stephan

Property prices will go on a hold since for sellers, the demographic that can buy properties is going down with this law. While a lot of people can afford property at 80% mortgage, only very few can afford 50%. Eventually it will remain a buyer's market, and sellers will have to adjust their prices accordingly. Good for buyers... But the people who really influence the market are the cash buyers who buy entire floors... Sadly, this affects only the "normal" people who want to make a living rather than an investment...

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