Moving to and buying a property in dubai

[Mrink]

I'm thinking about moving to Dubai and buying an apartment. I've browsed what feels like every corner on the web in order to gather information, yet I feel like I know nothing.

I'm a business owner of a few companies across Europe and I'm thinking about moving to Dubai due to the tax benefits. I'd still be traveling to Europe nearly half of the time. Married with a small kid.

At start I'm thinking of an apartment of around 1700sqft, and around 2 million Dirham. The apartment would have to be ready to move in. I'm planning on making the purchase after 6months to a year. This would give me enough time to travel om site and have a look.

I've been looking at Dubai marina and jumeirah beach residences. however, what makes me uncertain is the amount of complaints on the web. I assume some owners who are content don't go to the boards bragging about it.

Do you have any recommendations? Thanks in advance!

The question is, is it at all possible to make a decent deal in Dubai? I'm worried about the quality of the buildings as well as the maintenance fee and the maintenance of the building. Which building companies, areas and buildings are good?

 

[Mrink]

I think i mainly want to look at the marina, silverene, the jewel, infinity... Any other respectable projects that will be ready within a year? Is marina ok for a 3 year old child? Or will it be like living on a building site?

 

[Mrink]

I keep replying to myself. Can anyone give a quick estimate on how much discount is possible on the asking price? I know it totally depends on price and apartment, but some approximate? What would be your first bid if asking price is 2 million in this market situation?

 

[ssinghuk]

Discount - Obviously it depends on the price of the particular apartment comapred to the market, but I would start off 15% lower (probably be rejected outright). However, I would be dissapointed if I didn't get 5%. It all depends on the particular unit (whether it is already well priced or not).
JBR is great for restaurants and going out on foot - crowding, noise can be an issue as it gets so busy (also the specs of the units are okay but not luxury). The Marina pricing and quality varies by building. Units in certain buildings will command 30-40% premium over lower reputed buildings. There are now some good real estate agents (more service orientated then before). I would reccommend that you definitely meet a couple of agents from established agencies. They all have personal contacts with investors and may be able to get you a unit that is not on the market at a good price.

Lastly - maintenace is a big issue due to costs. JBR is notoriously expensive (considering they provide an average service). Dubai Marina varies by building (but most have come to a more reasonable level). High service charges are around AED 20+ per sq ft. Reasonable service charges are around AED 10-13 per sq ft.

 

[panchal]

Dear Sir,

Think twice before you comit. I have lost a lot of money my life saving has been taken by Dubai, be very careful about parting with your money in Dubai, to any estate agent's who in my experiance had give me receipts, all the official paperworks but its worthless in Dubai. The Dubai courts were not interested to help me either. So it was lost couse for me, and hundreds and thousand more who had commited, but were left pennyless.

Its you call, I suggest you rent, that way if all falls though you can just move out of Duabi as I had. Never to return.

Do your own resurch and only then comit.

Further do not buy offsit as you have no gurantee that project will ever finish.

Good Luck.

 

[Mrink]

Dear Sir,

Think twice before you comit. I have lost a lot of money my life saving has been taken by Dubai, be very careful about parting with your money in Dubai, to any estate agent's who in my experiance had give me receipts, all the official paperworks but its worthless in Dubai. The Dubai courts were not interested to help me either. So it was lost couse for me, and hundreds and thousand more who had commited, but were left pennyless.

Its you call, I suggest you rent, that way if all falls though you can just move out of Duabi as I had. Never to return.

Do your own resurch and only then comit.

Further do not buy offsit as you have no gurantee that project will ever finish.

Good Luck.

I'm sorry to hear about your investments and unfortunately there are many similar stories I've read across the internet. However, as people do live in apartments they own, it cannot be all bad. But again, one needs to be careful. Furthermore, I will only invest in an apartment I can move in to.

Did they just rob you of your money or did you invest in a building that never finished?

 

[MidasTouch]

Buyer beware

While Panchal made some great points, I think that as a grown adult, you need to know what your getting into before you jump. Many people did lose money and property value is down. Even lower than the other poster mentioned. But at the same time, you have to take responsibility for 1. Realizing you invested with a company or companies of owner's who until a decade before the boom knew nothing about property development, had no long term goal, and you invested in properties where no infrastructure was in place and there was no organized city management. And not only has this happened in Dubai, it's happened globally. I have been in real estate here for a few years and I've seen individuals who bought into off plan real estate where they were furious when they were advised of just how much their maintenance fees would cost annually AFTER THEY PURCHASED. Really? You bought an apartment without fee structures in place? Sorry but stupid is as stupid does. Is the time right to buy in the UAE now ? Absolutely. Because you can buy properties at half the original price. It is happening in UAQ and Ras Al Khaimah right now. I'm seeing it, I'm selling it !

 

[Mrink]

While Panchal made some great points, I think that as a grown adult, you need to know what your getting into before you jump. Many people did lose money and property value is down. Even lower than the other poster mentioned. But at the same time, you have to take responsibility for 1. Realizing you invested with a company or companies of owner's who until a decade before the boom knew nothing about property development, had no long term goal, and you invested in properties where no infrastructure was in place and there was no organized city management. And not only has this happened in Dubai, it's happened globally. I have been in real estate here for a few years and I've seen individuals who bought into off plan real estate where they were furious when they were advised of just how much their maintenance fees would cost annually AFTER THEY PURCHASED. Really? You bought an apartment without fee structures in place? Sorry but stupid is as stupid does. Is the time right to buy in the UAE now ? Absolutely. Because you can buy properties at half the original price. It is happening in UAQ and Ras Al Khaimah right now. I'm seeing it, I'm selling it !

Thanks for the reply!

Well, I'm certain the time to invest is certainly better now than in 2007. Prices down, ok they can still go down when new buildings finish, but I wouldn't expect another 50% drop in prices unless some other major changes, such as political turmoil. I'd expect the prices to fall around 10-15% during 2012 and then stabilizing. We'll see if my prediction is right. It's just a gut feeling and not based on any facts

At least I'm sure the tax raises across Europe/US will have some people moving out.

 

[shinedew01]

ladies.. im looking to buy as well ... anything to offer in silverene tower at good price would be great help..

 

[Veronica]

Quote "At start I'm thinking of an apartment of around 1700sqft, and around 2 million Dirham"

That seems an awful lot of money for an apartment. Thats almost 400.000euros.
The tax benefits must be fantastic to pay so much when that would buy a lovely villa with private pool in many other countries.:erp:

 

[Mrink]

Quote "At start I'm thinking of an apartment of around 1700sqft, and around 2 million Dirham"

That seems an awful lot of money for an apartment. Thats almost 400.000euros.
The tax benefits must be fantastic to pay so much when that would buy a lovely villa with private pool in many other countries.:erp:

Well it's about 58% tax vs. 0%. So yes, it's a huge benefit.

 

[Veronica]

wow 58% is a bit steep:erp:

 

[NJK]

JBR and the Marina

Hi Mrink

My family (from Europe) have lived in Dubai for 27 years and we have been through the quiet, boom and post boom times so hopefully can help on the market, and areas, having bought and sold at various points myself. I did own a sea view in JBR but have sold it for several reasons, firstly there have been some major ups and down in the maintenance prices of JBR, started off at 8dhs/sqft then rose to 21dhs/sqft and then were forced back down to 15dhs/sqft...not actually sure what they are now but JBR were not the only ones who did this so it is something to beware in any building you look at - check carefully what the maintenance fees are for the building and if there are any master development fees too. Secondly when I bought at JBR there were facilities promised which never materialised, due to construction costs rising and huge increases in material prices etc, despite what was promised on paper some of the included facilities like gyms in each building sector and a large residents beach club just never happened and this was part of the reason I wanted to live there. On the plus side JBR does have the beach across the road (though it can get very busy sometimes),the apartments are spacious and well finished, you can walk around 'The Walk' shops and there are plenty of restaurants, on the downside both JBR and the marina have had a reputation for fast cars and late night racing...this used to be a regular thing in the 1980s on certain roads when dubai was quiet so it is no surprise but in heavily populated areas late at night this has been cause for complaint from many ...although am not sure if this is still going on, i can ask friends who live in the marina if you like. The other problem i had at JBR was high ultility prices as JBR used a district cooling system for the ACs, from Empower, and I found them expensive compared to just paying DEWA (water and electric bill) in other developments. As for being child friendly there are areas for kids to play in JBR and the pools, the marina not so much and with so much building unfinished in the marina I am not sure i would recommend the marina for a little one just yet. Also the quality of build in the marina varies dramatically, I went into some which were terrible and yet others had great facilities and were nicely finished. The main thing I can say about the Marina is make sure you go and visit the building, some of the apartments are lovely and light if they are overlooking the marina, others on the side of the building with a partial view can be dark and shadowed by the building next to it....although that can sometimes be an advantage in summer keeping it cooler!!

My sisters both have young ones, one a 5 yr old boy and the other a 2 and a half year old so again I know where is and isn't great for kids...saying that most apartment blocks have areas where kids can play, swimming pools etc so each building needs to be taken on its own merit. One sister has moved to sports city after her son was born (from the marina) because it has a more space to offer for her little boy and she cycles the paths with him round there, another sister lives in the Springs but there is too much development still with the main roads being ripped up there- and my parents in the lakes which is family friendly but I think a little boring and not as friendly as some areas of Dubai.

As one of the other responders said i would be realistic about offers and go in about 10% under, deals are there to be had in some developments but the good ones can be popular and hard to find so very much depends on where you want to be and what facilities you are looking for in the place. Having a good eye on the market I would have said unless you are going for very high end 2 million is probably a little above what I would expect to pay for a 1700sqft, work on about 1100dhs / sqft, maybe a little more if it is very high end.

Hope that helps...

 

[MidasTouch]

Mods are now R/E and Tax experts?

First thing to learn about Real Estate.

LOCATION LOCATION LOCATION.

Good reply MrInk, I'm certain if purchasing property were only about getting more for less, you could find some fantastic deals in, let's say Syria ? Better yet, Libya ! :tongue:

 

[crendonman]

Come to Dubai first and Rent for a year...

Research the market fully, then make your choice.

Believe me you will not miss out on property here there is a glut now with more coming on stream...take your time then decide...prices are still falling for next 6 months maybe more

Cheers

 

[omar46]

Hello everybody, I made a fast trip to Dubai last week, it was my first time to visit the city, and I'm thinking of purchasing a property there for ?vacation ?investment, grabbing the chance of the drop of the real estate market. I got some advices from friends not to buy in unfinished projects or on papers, and that the unit should be already built or soon to be delivered. In my two-day stay I saw the Ocaen Hights by DAMAC in Dubai Marina, the tower was handed over last April / May, one bed room unit 926 sqf back view selling price 1,296,000 Dirhams .... Any advice? Shall I wait? Is it reasonable price regarding the current crisis and the legal claims against DAMAC? I'm Egyptian national working in Kuwait. Thank you very much.

 

[James Greg]

I keep replying to myself. Can anyone give a quick estimate on how much discount is possible on the asking price? I know it totally depends on price and apartment, but some approximate? What would be your first bid if asking price is 2 million in this market situation?

If you want to buy really cheap apartments or any property in Dubai then I know many places in this regard. There are many projects in Dubai that are in process. Many others are available at cheap and discount prices or rent in Dubai Marina, Downtown Dubai etc. If you are interested then reply me, I will definitely help you.

 

[iftikhar]

Moving to Dubai is a good idea but the struggles of Dubai to get back to the heights are popular every where. Dubai real estate sector is still a little doubtful and risky that's why you should have to be 100% confident about the investment is safe and profitable.