Distress Sales in Dubai - Why?

[jomonanu1]

I do not know why people wanted to do Distress Sales. Dubai, it will take time to mature, the correction, I mean the real correction will take only after many years. The government is giving protection to the Dubai Investors. The projects are announcing in Dubai is still at the beginning. The government has a plan behind this, they will protect the investments.

Look at the new Investments, Meraas for the example. It will cover and spread over Satwa and Jumeirah 1&2. With in a couple of years, the tenants have to move out of this area and look out for new areas to live. They can move to JLT, Marina or to the Dubailand only, so there is not going to be any more vacant flats or villas.

The same way, there are projects, the government is going to launch , revamping the entire Ras Al Khor and Rashidiya by next year, again the tenants have to move out to new destinations. Followed by Al Qouze, Deira and Al Ghusais and at the end, it is Bur Dubai and Jumeirah, Umm Suquiem area. All these projects will be finishing by 2025.
Think, once Deira and Bur Dubai is going for a shift, where all this public will move in to.By the time, all Dubailand will be congested and the rental Income will be more.

Other than this, please look in to the projects announced already. The new Al Maktoum International Airport at Jabal Ali needs 135000 employees, once it is operational. This airport will open in the 4th quarter of 2009. Look at the number of hotels are coming up, according to Movenpick, they alone need around 12000 new staffs by the end of 2009. The Metro line will be operational from 2009 and the construction will start for the Blue Line and Purple line from 2010. Once Business Bay is complete more global giants are moving to Dubai.

Right now, Dubai is the only safe heaven for the Investors. People they lost jobs in US, UK and Europe, they have move towards Middle East. 90% of those people are eyeing Dubai. With in months they will move to Dubai and they started buying properties, the prices will again go up.

After all, as RERA and govt departments say, Dubai is not a market for speculators. This should be ended. Right now, the Investors are looking for resale from day one of the properties, In future; they can only resell it only after one year or after the completion of the project.

Dear investors, please note, Dubai is not ruled by Democracy but Monarchy. In democracy, there are ruling party and opposition and they can adopt any type of policies. That can lead destruct ions in the market. Dubai is ruled by Visionary, Business Oriented Leaders. They also have Business Interests. So they never let you down.

Look at the Rent, it is just increasing only, I never saw it is decreasing. Again it will go up all these coming years. The present City cannot afford the flow of people right now. And Dubai is growing and it will grow only.

 

[Manuch76]

I am also looking for buyers for multiple properties that my investor has bought. And yes, I would consider it a distress sale also, since the buyer is in panic over the financial crisis. I wish everyone would have the same beliefs and the vision that you have.

 

[rossantony]

the economy is global..havn't you heard?

Dubai, China, even little Laos and Vietnam are effected by the global economy, however well their own economy stacks up..

What will be interested to see is what the visionary businessmen of Dubai will get into next..

Here in Egypt we have seen a large rise in construction stocks against trend..why?

Because arab businessmen are bailing out of Dubai on heavy stock losses and investing into Egypt.....

I do not know why people wanted to do Distress Sales. Dubai, it will take time to mature, the correction, I mean the real correction will take only after many years. The government is giving protection to the Dubai Investors. The projects are announcing in Dubai is still at the beginning. The government has a plan behind this, they will protect the investments.

Look at the new Investments, Meraas for the example. It will cover and spread over Satwa and Jumeirah 1&2. With in a couple of years, the tenants have to move out of this area and look out for new areas to live. They can move to JLT, Marina or to the Dubailand only, so there is not going to be any more vacant flats or villas.

The same way, there are projects, the government is going to launch , revamping the entire Ras Al Khor and Rashidiya by next year, again the tenants have to move out to new destinations. Followed by Al Qouze, Deira and Al Ghusais and at the end, it is Bur Dubai and Jumeirah, Umm Suquiem area. All these projects will be finishing by 2025.
Think, once Deira and Bur Dubai is going for a shift, where all this public will move in to.By the time, all Dubailand will be congested and the rental Income will be more.

Other than this, please look in to the projects announced already. The new Al Maktoum International Airport at Jabal Ali needs 135000 employees, once it is operational. This airport will open in the 4th quarter of 2009. Look at the number of hotels are coming up, according to Movenpick, they alone need around 12000 new staffs by the end of 2009. The Metro line will be operational from 2009 and the construction will start for the Blue Line and Purple line from 2010. Once Business Bay is complete more global giants are moving to Dubai.

Right now, Dubai is the only safe heaven for the Investors. People they lost jobs in US, UK and Europe, they have move towards Middle East. 90% of those people are eyeing Dubai. With in months they will move to Dubai and they started buying properties, the prices will again go up.

After all, as RERA and govt departments say, Dubai is not a market for speculators. This should be ended. Right now, the Investors are looking for resale from day one of the properties, In future; they can only resell it only after one year or after the completion of the project.

Dear investors, please note, Dubai is not ruled by Democracy but Monarchy. In democracy, there are ruling party and opposition and they can adopt any type of policies. That can lead destruct ions in the market. Dubai is ruled by Visionary, Business Oriented Leaders. They also have Business Interests. So they never let you down.

Look at the Rent, it is just increasing only, I never saw it is decreasing. Again it will go up all these coming years. The present City cannot afford the flow of people right now. And Dubai is growing and it will grow only.

 

[Suru]

Face teh Facts in Dubai and UAE

There is something very important which most of the people seem to miss out of sheer ignorance and interest in the green paper. How is an economy of a country run? Where does the country get the money from? How do the rich become rich, because they have a million(s) middle-class & low-class people (who make up the mass) to support it. Its like a traingle. However by the looks of what is happening in dubai, the place is being made up for the RICH only. Can you have an inverted triangle standing at its peak, i.e., can you have high number of rich people and less middle-class or low-class? Very soon the triangle will tumble.

Most of the rich investing here are doing so out of interest to protect their black money.

We are talking about shortage of houses to live here that is driving up rentals and also the cost of construction. Do all those apartments need a GYM, 2/3 swimming pools, hitech gadgets, all marble finish, expensive chandeliers, etc. and then we talk about conserving water and energy, what a joke. The middle class and low class does not need all this, it is the high class who need this and they are making the city in this way.

Honestly, it looks like a SIEGE, a well planned SIEGE to rip the low-class and middle-class people of their money and savings and stop them from sending money back to their countries (as the ruler mentioned in one of the forums publicly that money earned here should be retained here). One very important thing they forgot, this place does not have anything other than oil and compared to the other Emirates, Dubai has very less. Which means all the money generated here, is actually coming from outside, which they want to protect from going somehwere else. I wonder how would the words CASH FLOW and LIQUIDITY continue to hold their meaning and one of the key positions in a economy.

By the by, just as the rents were not controlled first, followed by a 20% rent cap, that was reduced to 15% and then to 7% and still no control....the residence visa concept with the apartments was withdrawn....after so many people including individuals invested their hard earned money. What is the guarantee that tomorrow while you are living in your house, someone will not come and say, this bldg is to be demolished under order from government..you need to vacate.

All I can think is KISS your money good bye and better have a backup plan.

For investments if significant scale into a country, a country has to give back something to its residents, what is it that is given here oh sorry I forgot they give you SALIK charges, they give you NO PARKING space, they give you time to enjoy in traffic jams, they give you the privilege to part away with your hard earned money by raising cost of living and rents on,on,on and on.


Come on, lets face the fact, the world is not born new.

There are several countries in this world that have established a mark on the globe since years

why doesn't the country consult them and understand the best way to run the country, get peopel to invest in it, give them benefits, put in controls to protect people's interest, etc. why do we want to learn with mistakes first no rent cap landlords increase rents as they feel like...then 20%, 15% & 7% cap...still no control landlords somehow find a way to get awat with it .then we have the famous realy frauds .only after which we have escrow accounts,common the world has grown already .we are not inventing something new here why not implement controls that have been implemented and working else where? .

Well the only reason I can see to go by learning mistakes and improving is

b'coz its a well planned SIEGE and when a part of their SIEGE is exposed in the form of frauds or miscontrol..they come up with some "loose" controls to show that it is being controlled now.

All I can is BEST of LUCK to those people who only look at the country's prospects by the bldgs coming up and not by the indepth fundamentals and corporate governance.

 

[rossantony]

doombai

some firms posting no sales in 3 months, loads of off plans going back to the developers due to the global financial crisis, prices down 40%...whats the truth? Is it out there?

 

[PropGuy]

some firms posting no sales in 3 months, loads of off plans going back to the developers due to the global financial crisis, prices down 40%...whats the truth? Is it out there?

yet I can't find the real estate I want. So many times I posted on forum get me a good deal yet no replies.

 

[sasherwani2]

yet I can't find the real estate I want. So many times I posted on forum get me a good deal yet no replies.

There arent many brokers on the forum anymore. You should consult a good broker and inquire on distress sales. I knew two really good brokers who could get you the best deals in town but both of them have left the country. What exactly are you looking for?

 

[PropGuy]

There arent many brokers on the forum anymore. You should consult a good broker and inquire on distress sales. I knew two really good brokers who could get you the best deals in town but both of them have left the country. What exactly are you looking for?

Distress sales for The Address, Burj Dubai Tall Tower, JBR, J. Park, or PJA signature villa. Or good land price in sport city or JVS. Yesterday there was sale for approx 15,000 sqft land sale for aed 5,000,000.

 

[sasherwani2]

Distress sales for The Address, Burj Dubai Tall Tower, JBR, J. Park, or PJA signature villa. Or good land price in sport city or JVS. Yesterday there was sale for approx 15,000 sqft land sale for aed 5,000,000.

I'm not surprised since someone has to be crazy to be brining up any new buildings in Dubai.
I'll check your requirements with my friends. Not everyone is willing to sell at the new market prices but you might get lucky.

 

[renter1]

yet I can't find the real estate I want. So many times I posted on forum get me a good deal yet no replies.

What do you want? There are plenty of deals out there but just aimlessly asking for them to be emailed to you is a little optimistic!!

 

[financier888]

deals

Distress sales for The Address, Burj Dubai Tall Tower, JBR, J. Park, or PJA signature villa. Or good land price in sport city or JVS. Yesterday there was sale for approx 15,000 sqft land sale for aed 5,000,000.

IF you wait till around April / May and going into the summer- you'll start to see real bargains coming on the market - in the areas you specified. In the downtown Burj area - many investors are still holding out hoping the market would come back by March - which it won't. As the impact starts to settle in - then the hard choices will have to made and with less and less tenants available - owners will start selling and dropping prices.. (like the Address, etc..) I think the Burj Tower may be an acception due to it's unique iconic status.... But, you may find some investors needing cash and then they'll come on the market. JBR should be easier... Time is on your side but you need to network with some good brokers that intend to stay here and work the market

 

[financier888]

same planet?

I do not know why people wanted to do Distress Sales. Dubai, it will take time to mature, the correction, I mean the real correction will take only after many years. The government is giving protection to the Dubai Investors. The projects are announcing in Dubai is still at the beginning. The government has a plan behind this, they will protect the investments.

Some people want to buy distress sales because the prices were hyper-inflated and now, the supply exceeds the demand. As such, the prices will start dropping to reasonable levels.. (2006OP prices in many cases) making the residential and commercial more affordable. In the same way, Dubai has these annual sales promotions of 50% off etc - it attracts buyers..well, it used to anyway

Look at the new Investments, Meraas for the example. It will cover and spread over Satwa and Jumeirah 1&2. With in a couple of years, the tenants have to move out of this area and look out for new areas to live. They can move to JLT, Marina or to the Dubailand only, so there is not going to be any more vacant flats or villas.

Meraas has placed most of the aforementioned projects on 'hold' - indefinitely and you cannot compare rental prices in Satwa with JLT or the Marina. Don't be suprised if the projects are delayed for 2-3 years. It's about liquidity - and demand. Why build in absense of demand? - how would the developer exit?

The same way, there are projects, the government is going to launch , revamping the entire Ras Al Khor and Rashidiya by next year, again the tenants have to move out to new destinations. Followed by Al Qouze, Deira and Al Ghusais and at the end, it is Bur Dubai and Jumeirah, Umm Suquiem area. All these projects will be finishing by 2025. Think, once Deira and Bur Dubai is going for a shift, where all this public will move in to.By the time, all Dubailand will be congested and the rental Income will be more.

Considering the amount of rising unemployment here (and across the world) "where will these people go'? - back to their country! Dubai is very expensive and once you lose your job and visa is cancelled - you go home. Even if you could stay - you wouldn;t want to - it's simply too expensive. Expecially if you have a family - as some of the private schools have increased tutition by 90% ! Do you have any idea how much these schools were monthly BEFORE they raised they price? Rental income will rise based on demand and don't expect to see that anytime soon in Dubai or for that matter - most major cities across the world. If there are 50-100 vacant flats for each new persepctive tenant - how do you think that will impact rental prices? and... as the sales prices drop - people that are working and renting - will buy. Expect another wave of rental price decreases as we approach the summer... Rental prices in the downtown Burj area are already down 30% and this is just early Feb - and that's after several months of sitting vacant... more to come

Other than this, please look in to the projects announced already. The new Al Maktoum International Airport at Jabal Ali needs 135000 employees, once it is operational. This airport will open in the 4th quarter of 2009. Look at the number of hotels are coming up, according to Movenpick, they alone need around 12000 new staffs by the end of 2009. The Metro line will be operational from 2009 and the construction will start for the Blue Line and Purple line from 2010. Once Business Bay is complete more global giants are moving to Dubai.

For the first time in years, the vacancy rates in the hotels here has dropped with many five star hotels dropping their prices during the week. Some are still enjoying decent occupancy rates (85% +) because of prior booking packages that were done months ago. These will decline as less people are travelling and businesses are cutting back. 5 star hotels will drop and 3-4 star hotels may continue to be firm ( AED 500-700 per night pricing) for business guests that have to travel here. The largest hotel project here ASIA ASIA HOTEL - 6,500 rooms - cancelled. Others delayed. This is about a global liquidity issue and based on demand. With some of the amusement park and tourist attractions on hold or cancelled - you won't see the spike in tourism that these projects were intended to draw. Retail sales are already off 50% - and that's during the 'Sale' month - so - many people will shop at their local malls rather than fly here - only to find higher prices on comparable goods - because the retial rents are too high...

Right now, Dubai is the only safe heaven for the Investors. People they lost jobs in US, UK and Europe, they have move towards Middle East. 90% of those people are eyeing Dubai. With in months they will move to Dubai and they started buying properties, the prices will again go up.

Dubai may be a safe 'heaven' for some - those that liquidated their holdings by May 2008. Although it is a safe haven for many, if UAE pushes through income and corporate taxation - other more attractive 'safe havens' will emerge. Considering the debacle connected with the EIDA (national identity cards) imagine the fun you'll have when having to deal with a new tax authority! 'Moving to Dubai in the months ahead?' - perhaps in heaven.... with 85% of the populas being expats and many on their way out - who will be moving here? Especially if you cannot get a residence visa if you buy and you cant' find a job? Will these buyers coming in to buy only to be able to stay here for 30 days and then fly out. People that have lost thier job in the USA, UK & EU will not flocking to Dubai to find work. Even unskilled labout in India won't be able to find work here. Do you really expect people from Europe and USA to come here, pay US $500- US $700 to share one room with 4 others, sleeping in a bunk bed and try to find work? Firms are cutting jobs every month here and will continue to do so because it will take some time for the global economy to get back on track.

After all, as RERA and govt departments say, Dubai is not a market for speculators. This should be ended. Right now, the Investors are looking for resale from day one of the properties, In future; they can only resell it only after one year or after the completion of the project.

Well, that's certainly true now!! Dubai is now NOT a market for speculators!! However, what i think many people lost sight of is - this is largely an expat market and many people that have bought here - this is their secondary residenance - for investment - whether long or short term. the problem occured beacuse developers did not qualify the people that purchased and many, were in no position to make the second installment. - They should have never been able to buy in the first place! The way the market is going - you should wait a year till after completion - because it may be cheaper!! I am sure that some the buyers who purchased in 2007 and continued to make payments would have been delighted by your suggestion to hold for one year after completion before they sell but unfortunately, on some of those plots, the developer hasn't shifted one spoon of sand yet...

Dear investors, please note, Dubai is not ruled by Democracy but Monarchy. In democracy, there are ruling party and opposition and they can adopt any type of policies. That can lead destruct ions in the market. Dubai is ruled by Visionary, Business Oriented Leaders. They also have Business Interests. So they never let you down.

I agree and Dubai has indeed captured the imagination around the world. It's not an issue of Dubai letting anyone down, (although some investors that are being burnt by errant developers may disagree.. but it's too soon to say as dubai is stepping-up enforcement....) It's a GLOBAL condition. No One has escaped unless you were already living on less than a 1 dollar a day. Trillions have evaporated from the global cash flow - many people have lost significant amount of the savings and may lose their job - it's a pandemic problem.

Look at the Rent, it is just increasing only, I never saw it is decreasing. Again it will go up all these coming years. The present City cannot afford the flow of people right now. And Dubai is growing and it will grow only.

Rent increasing only? My freind, I think you are believing the rents being quoted in the paper and haven,t spoken to any rental agents - the few that are left. If you haven't seen rents decreasing i don't think we're in the same city. (better talk to Sash....) cannot afford the flow? - the current flow is OUTBOUND. Tens of thousands of apartments are VACANT. When you pass most of these developments at 8-9 PM and see the lights out - its not that the tenants are out smoking shisha somewhere - THE APARTMENTS ARE EMPTY.



I just saw the movie THE DAY THE EARTH STOOD STILL - and after reading this post - I was wondering.. are we on the same planet? (comments in RED)

 

[sasherwani2]

This was an old post. The guy probably has woken up from his beauty sleep by now. Reading his post was like watching a Disney movie with the happiest of endings for all!!

 

[heat_wave]

Distress sales for The Address, Burj Dubai Tall Tower, JBR, J. Park, or PJA signature villa. Or good land price in sport city or JVS. Yesterday there was sale for approx 15,000 sqft land sale for aed 5,000,000.

I have a number of good deals in JBR and Burj Dubai area, let me know if you want a chat.