Good News for City of Arabia - Wadi Tower

[jordandvdj]

Just got a call from my real estate agent. The price of a 2 bed in Wadi is now 2.5million AED. Galadari have just upped the price.

This is great for me as I bought mine for 1.5m 2 weeks ago.

Was on site last week - work is going on so hopefully a bit more than sand and pile caps to look at soon.

 

[jordandvdj]

Oh - also the ready date is now december 2009. I live in dubai so if you want an update let me know. My company has started on Universal Studios also - we are preparing all the temporary areas for the developer. 5 minutes from city of arabia.

 

[DAYFox]

Just got a call from my real estate agent. The price of a 2 bed in Wadi is now 2.5million AED. Galadari have just upped the price.

This is great for me as I bought mine for 1.5m 2 weeks ago.

Was on site last week - work is going on so hopefully a bit more than sand and pile caps to look at soon.

Hmm, are you sure this is true??? 1million in 2weeks is to good to be true...
I invested in Wadi Tower in 2006 already and now completed 75% of the total payment -only the last 25% installment has to be paid by me upon completion. I am planning to sell my unit (25th floor),so if someone is interested please let me know!
An update of the site would be great... Maybe you can step by after work or so thx

 

[jordandvdj]

i know. I bought through go wealthy directly from Galadari. They had not changed the price since december. Go wealthy called today as galadari had an exhibition for city of arabia in the burjaman centre and the price had changed. my realtor called galadari today to confirm and they said 2.5m for 2 bed.

Just got lucky I guess. I told my realtor if anyone was prepared to pay in excess of 2m let me know.

I was on site last week as it is only 10 mins for where I live. Mostly sand and hoarding with many pile caps. not much to see. Galadari also changed the handover date for wadi to December 2009 2 weeks ago. Will take a few snaps.

3 bed in wadi is now 3.5m AED. Can find them at gowealthy dot com

 

[Roshan]

Just got a call from my real estate agent. The price of a 2 bed in Wadi is now 2.5million AED. Galadari have just upped the price.

This is great for me as I bought mine for 1.5m 2 weeks ago.

Was on site last week - work is going on so hopefully a bit more than sand and pile caps to look at soon.

I don't mean to discourage you. On paper everything looks good.

The real value and test comes when a caller actually pays a down payment. Then you really know what the actual price is.

In the US I am told you can actually check what the properties were sold weeks back or years back. Why ?, because the market has gone through many cycles and a record of every sale is kept. People know the level of prices which existed a week back or for that matter a year back. Nobody knows what the actual prices in Dubai are. By raising the price overnight does not mean the property is worth so much.

When somebody asked me what appreciation I have got on my investments. I rightly say " On paper, it's so much ".

A developer raising the prices is not an indication. He might just be wanting to create a publicity - OR - dangle a carrot for the next investor.

But if you have made a million in 2 weeks, I am happy for you.

Look forward to the next million.

Regards

Roshan

 

[mpat]

This type of price hike is crazy and gives a dull impression of developer.
This is the first time I heard such a huge increase in prices.This may be like what roshan said , only to create a news amongst investors and keep them calm over the delays.
Anyway,its good that you are happy.
Wish you all the best.

 

[savais]

Hi there, sorry to be a pessimist, but I don't believe that the price of a 2bdrm in Wadi Tower is 2.5m. That is the price of a 2bdrm in Wadi Walk. You will find that the 2 beds in wadi and metro tower are all sold out, so why would the developer increase the price if there are no more units to sell? I would call galadari brothers directly and confirm.
I bought a 2bdrm in metro tower and all the units are sold out there as well, and the price has still remained around the 1.5 mark. I don't think we will see an increase until next year because it is still 2 years away from completion.

 

[savais]

I am waiting for the sales rep of galadari to call me back. I did check the gowealthy sire, and you are right, the prices have shot up. So that is good news indeed. However, as Roshan said, we should be cautious as this price is just on paper. I think once it is ready, it will be a good investment, but as it stands right now, with the price the same as a 3bdrm villa in the springs, it is a bit hard to believe people will buy at that price. Still, good news all the same. Thanks for that! Made my day brighter already.

 

[jordandvdj]

prices

Prices are crazy. I was thinking of going to JBR. I rang on a wednesday and the girl at Dubai properties told me 1.4m. I went down to their offices on Sunday and they were 1.8m??? Go figure. Priced out in 4 days!!

Wadi might sell well once there is something concrete there. Prices here tend to inflate once it can be seen coming out of the ground.

Rental is terrible too. I am looking for a place until wadi is ready and have 20,000 pounds, 40,000 us dollars to put down rent up front and I cannot get a 2 bed in the marina because my company wants their name on the lease. They do not have to bite your hand off. Demand is so high waving cash at them does not help unless it is on their terms.

One of the reasons why I bought - the greed of the landlords is disgraceful but hey - if you can make a quick buck.

Think they want your name on it as companies fight rent increases - individuals are not well placed.

 

[Roshan]

Hi there, sorry to be a pessimist, but I don't believe that the price of a 2bdrm in Wadi Tower is 2.5m. That is the price of a 2bdrm in Wadi Walk. You will find that the 2 beds in wadi and metro tower are all sold out, so why would the developer increase the price if there are no more units to sell? I would call galadari brothers directly and confirm.
I bought a 2bdrm in metro tower and all the units are sold out there as well, and the price has still remained around the 1.5 mark. I don't think we will see an increase until next year because it is still 2 years away from completion.

Prices in these areas will build rapidly on close to completion.

Regards

Roshan

 

[savais]

Roshan, in your opinion, what do you think the price per sqft will be in CoA upon completion? I see prices in Jumeirah Village have already reached 1000 dhs psf even though they are a couple of years away from completion. If the prices do go up to 1500-1800 dhs psf, what will the prices of the springs and arabian ranches be then? (they are already at 1100dhs psf which seems to me a better deal than JVS or CoA).

 

[savais]

jordandvdj, I just checked gowealthy's site and they have removed the prices. This could be because it was a mistake and has now been rectified, or it could be that the remaining units have been sold out. Can you confirm with your agent directly? Thanks!

 

[Roshan]

Roshan, in your opinion, what do you think the price per sqft will be in CoA upon completion? I see prices in Jumeirah Village have already reached 1000 dhs psf even though they are a couple of years away from completion. If the prices do go up to 1500-1800 dhs psf, what will the prices of the springs and arabian ranches be then? (they are already at 1100dhs psf which seems to me a better deal than JVS or CoA).

Savais,

Nobody can forecast prices - or - how the markets will move in time to come. Frankly speaking, I never even looked at CoA as I knew that developments of this size are humangous projects and take a lot of time to build and would exceed normal delivery schedules which the developer promise. Picture yourself staying in a building with sand & dust everywhere. Not very good at that point of time, but when the full development comes in, people would love to stay there. With Dubai being touted as a hot tourist destination, things will look good out there in time to come.

City of Arabia in my opinion is a long term investment. The sheer size of that development at times is frightening. It is a buy to hold strategy that works well in these kind of developments. When the full development comes into place, the value will shoot up.

Jumairah village is a smaller development as compared to CoA and will come into the market soon, hence you might see prices moving at a faster pace in this area.

Villas will continue to move up for sometime but will reach saturation when people find the prices obnoxious. You might see villa prices correcting in the near future ( that's my hunch, I could be wrong )

Regards

Roshan

 

[DAYFox]

I just spoke to Galadari personally and asked for the current sqfet price rate in WADI TOWER. She told me that for Floor 25 -the floor I am having a unit- is 1576 AED /sqfet. I asked her why the developer is increasing prices, if they have already sold all units? She told me that the developer has 4Units left and therefore they increased the prices (I thought Wadi Tower was sold out long time ago )! Wadi Tower is already under construction and she recommended me to hold the unit until Podium is ready...
Now a question to you all: What would you reommend to me if I want to resale now? Where shall i list the unit and what price can i expect when developers price is 1576Aed? Is it reasonable to wait until Podium is ready? The person I spoke to recommended to me to keep the unit and to rent it out (would be around 100.000AED for a 1Bed). But i prefer to sell, because who knows how the market stands in a few years and who knows if it will be easy to rent out (City of Arabia will be a construction paradise for the next years).
Would like to share your opinions!
thx

 

[savais]

Savais,

City of Arabia in my opinion is a long term investment. The sheer size of that development at times is frightening. It is a buy to hold strategy that works well in these kind of developments. When the full development comes into place, the value will shoot up.

Jumairah village is a smaller development as compared to CoA and will come into the market soon, hence you might see prices moving at a faster pace in this area.

Villas will continue to move up for sometime but will reach saturation when people find the prices obnoxious. You might see villa prices correcting in the near future ( that's my hunch, I could be wrong )

Regards

Roshan

Hi Roshan,

Thanks for the reply, always interested to read your opinion on things.

CoA is a big development (34 towers),but not bigger than Jumeirah Village (in terms of buildings anyway). However, I see your point about JV already having ready developments surrounding it, while dubailand is just sand at the moment.

I agree that all the projects in dubailand are better for long-term strategy. I cannot sell my 2bd unit in Metro Tower before 6 months after completion anyway (ADCB conditions),but my plan was to either live in it or rent it out if rents are favourable then.

For the short-term, I bought a 1bdrm in DSC which I hope to either rent out, or sell off once completed.

Really interesting opinion about villa prices correcting in the near future. With the sheer amount of apartments coming out, villas are always going to be in demand (supply won't reach demand in the villa sector) especially if the price per sq ft is still comparable with apartments (arabian ranches, springs are all at around 1100-1200dhs per sqft).

Where did you purchase property? What are your plans with it (short-term, long-term, etc)?

Looking forward to the dubai chapter forum meeting.

Regards,
Savio

 

[savais]

I just spoke to Galadari personally and asked for the current sqfet price rate in WADI TOWER. She told me that for Floor 25 -the floor I am having a unit- is 1576 AED /sqfet. I asked her why the developer is increasing prices, if they have already sold all units? She told me that the developer has 4Units left and therefore they increased the prices (I thought Wadi Tower was sold out long time ago )! Wadi Tower is already under construction and she recommended me to hold the unit until Podium is ready...
Now a question to you all: What would you reommend to me if I want to resale now? Where shall i list the unit and what price can i expect when developers price is 1576Aed? Is it reasonable to wait until Podium is ready? The person I spoke to recommended to me to keep the unit and to rent it out (would be around 100.000AED for a 1Bed). But i prefer to sell, because who knows how the market stands in a few years and who knows if it will be easy to rent out (City of Arabia will be a construction paradise for the next years).
Would like to share your opinions!
thx

Well, until a couple of days ago, Gowealthy were still advertising for the 3bdrm apmt in Wadi Tower, so I guess there were very few units left. Same with Metro tower. Surprised with the jump in price, especially that big a jump (it was just 950-1000dhs per sqft a week ago). I guess the developer is trying to recover whatever they can from the obvious losses being incurred what with the rising costs of construction materials, labour, delays, etc. Just hope they don't sacrifice the quality of build for profit (would not be surprised).

good news about the expected rental return. I have a 2bdrm apartment in metro, and would love to rent that out at 120K! I figured if I did not get enough in rent to cover the mortgage, I'd just move in myself!

 

[savais]

Now a question to you all: What would you reommend to me if I want to resale now? Where shall i list the unit and what price can i expect when developers price is 1576Aed? Is it reasonable to wait until Podium is ready? The person I spoke to recommended to me to keep the unit and to rent it out (would be around 100.000AED for a 1Bed). But i prefer to sell, because who knows how the market stands in a few years and who knows if it will be easy to rent out (City of Arabia will be a construction paradise for the next years).
Would like to share your opinions!
thx

Dayfox, I have not seen many units on re-sale in CoA, except for Wadi Walk. The problem is that the property is still 2 years away from completion, so the demand for it will not be very high. if you wanted to sell it now, you would have to sell it for lower than the prices being quoted elsewhere in dubailand, so that would mean about 950-1000dhs per sq ft. I don't think anyone will pay 1500dhs per sqft at the moment, not with other projects still affordable (Wings of Arabia was under 900dhs per sqft).

If you can, hold onto it until 6 months before completion, then the demand will begin to generate and you could/should get approx 1400-1500dhs per sqft.

Just my opinion, and I usually tend to be on the pessimistic side at the best of times ;o)

Regards,
Savio

 

[Roshan]

Hi Roshan,

Thanks for the reply, always interested to read your opinion on things.

CoA is a big development (34 towers),but not bigger than Jumeirah Village (in terms of buildings anyway). However, I see your point about JV already having ready developments surrounding it, while dubailand is just sand at the moment.

I agree that all the projects in dubailand are better for long-term strategy. I cannot sell my 2bd unit in Metro Tower before 6 months after completion anyway (ADCB conditions),but my plan was to either live in it or rent it out if rents are favourable then.

For the short-term, I bought a 1bdrm in DSC which I hope to either rent out, or sell off once completed.

Really interesting opinion about villa prices correcting in the near future. With the sheer amount of apartments coming out, villas are always going to be in demand (supply won't reach demand in the villa sector) especially if the price per sq ft is still comparable with apartments (arabian ranches, springs are all at around 1100-1200dhs per sqft).

Where did you purchase property? What are your plans with it (short-term, long-term, etc)?

Looking forward to the dubai chapter forum meeting.

Regards,
Savio

Savio,

On the villas, it's just my hunch. I am no expert. I always try to apply logic.

Villa prices can't keep moving up for ever. As it is the prices are high. A time might come where the prices will be too hot to handle and that's the time when there will not be people to buy, even if the seller wants to sell. That could lead to panic.

Most of the people are buying for flipping. Sometime back I saw an investor wanting to sell 34 villas in Al Furjan. It's situations like these that could bring about a correction. You are 100% right that for the time being villas are in demand, but I feel the madness will have to end somewhere. When madness ends panic sets in.

I have seriously not researched CoA but took it as a big part of Dubai land.

I have purchased 1000 sq ft office space in Business bay ( Gemini by Omniyat ) , Jumairah lake towers ( JBC2 by Al Fajer ) and a 3 bdr apartment
( Motorcity - Union properties ).

I need to add a few more names to the mailing list. I will be out of Dubai for a week. We hope to have the first meeting end of this month. Selecting a place will be a problem.

Regards

Roshan

 

[Demoniise]

Savio,

On the villas, it's just my hunch. I am no expert. I always try to apply logic.

Villa prices can't keep moving up for ever. As it is the prices are high. A time might come where the prices will be too hot to handle and that's the time when there will not be people to buy, even if the seller wants to sell. That could lead to panic.

Most of the people are buying for flipping. Sometime back I saw an investor wanting to sell 34 villas in Al Furjan. It's situations like these that could bring about a correction. You are 100% right that for the time being villas are in demand, but I feel the madness will have to end somewhere. When madness ends panic sets in.

I have seriously not researched CoA but took it as a big part of Dubai land.

I have purchased 1000 sq ft office space in Business bay ( Gemini by Omniyat ) , Jumairah lake towers ( JBC2 by Al Fajer ) and a 3 bdr apartment
( Motorcity - Union properties ).

I need to add a few more names to the mailing list. I will be out of Dubai for a week. We hope to have the first meeting end of this month. Selecting a place will be a problem.

Regards

Roshan

Hi Roshan,

I am interested in buying some office space and retail but am having problems finding a good agent to buy from. How much did your investment in Gemini cost?

D

 

[DAYFox]

Hi Roshan,

I am interested in buying some office space and retail but am having problems finding a good agent to buy from. How much did your investment in Gemini cost?

D

Hi Demoniise,
I have invested in BusinessBay as well (Commercial and Residential). Today you are right, it's not that easy to find the right property in BusinessBay that fits your needs (not much resale also). In addition, it's one of the most expensive areas in Dubai already. Currently, it's about 2000Dhs /sqfet. IMHO it's still a very good bet! I think BusinessBay will be one of the best and highest demanded areas for Business + residential will turn out fine as well. Just recently I heared that people prefer to buy resale in BB and accept to pay 100% premium, which is still cheaper than to go for offplan or just launched projects...
Good luck with your choice and keep me updated about your buy!