Business Bay Good Investment Or Not

[DAYFox]

Very interesting discussion! Always like to hear more about BusinessBay and Dubai poperties in general
What is current market price in BB now (off & res)? And i recognized you are talking about HongKong, Singapore etc. comparing to Dubai. Therefore I was wondering what the current sqfeet price at those places? But don't forget one thing; in HongKong there is no space which can be build at all whereas in Dubai there is still a lot !!!

 

[Wannaberich]

From the Dubai Chronicle:
There has been a decrease in the number of individual and collective work permits issued by the Ministry of Labour (MoL) in Dubai in 2007 as compared to 2006, according to a senior official from the ministry.

Humeid Bin Demas, Executive Manager for Labour Relations (MoL),said around 9,214 individual work permits were issued by MoL in 2006, whereas only 7,882 individual work permits were issued in 2007.

According to him, the number of collective work permits also decreased last year as compared with those issued in 2006. As many as 654 collective work permits were issued by MoL in 2006, but only 428 collective work permits were issued last year.

Bin Demas downplayed the decline in the number of work permits issued in Dubai. “It does not indicate anything. It is probably due to the fact that most companies have already hired their required number of workers before 2007. Employers have hence been applying for renewal of work permits,” he added.

Employers can seek collective work permits from the MoL if the minimum number of workers is 50 workers for one company. The employer should fill in the special form of collective permits providing the same necessary information as in the application for individual employment visa or individual work permit, he pointed out.
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With so many business towers going up I dont think this is great news.

 

[georgihh]

From the Dubai Chronicle:
There has been a decrease in the number of individual and collective work permits issued by the Ministry of Labour (MoL) in Dubai in 2007 as compared to 2006, according to a senior official from the ministry.

Humeid Bin Demas, Executive Manager for Labour Relations (MoL),said around 9,214 individual work permits were issued by MoL in 2006, whereas only 7,882 individual work permits were issued in 2007.

According to him, the number of collective work permits also decreased last year as compared with those issued in 2006. As many as 654 collective work permits were issued by MoL in 2006, but only 428 collective work permits were issued last year.

Bin Demas downplayed the decline in the number of work permits issued in Dubai. “It does not indicate anything. It is probably due to the fact that most companies have already hired their required number of workers before 2007. Employers have hence been applying for renewal of work permits,” he added.

Employers can seek collective work permits from the MoL if the minimum number of workers is 50 workers for one company. The employer should fill in the special form of collective permits providing the same necessary information as in the application for individual employment visa or individual work permit, he pointed out.
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With so many business towers going up I dont think this is great news.

Something sensible in this forum - thanks
What is the reason behind this?
Enormous charges for work permits.
And this will accelerate the inflation as the labor is getting expensive.
Yes is very prestige to open an office in Dubai but nobody wants to employ people
anymore. Everybody wants to cash up and run way.
And if this starts all of us with some properties in Dubai will suffer big time.
There is enormous amount of jobs in Dubai but employing people means you take care of them and the government doesn’t help at all.
It’s a catch 22
You make and they take – less you make less they take, more you make more they take.
Me personally prefer to pay 30% in taxes, but have a stable life instead of
Paying unpredictable charges for unknown reasons
That’s why next year your numbers won’t differ much from this year

 

[Roshan]

Very interesting discussion! Always like to hear more about BusinessBay and Dubai poperties in general
What is current market price in BB now (off & res)? And i recognized you are talking about HongKong, Singapore etc. comparing to Dubai. Therefore I was wondering what the current sqfeet price at those places? But don't forget one thing; in HongKong there is no space which can be build at all whereas in Dubai there is still a lot !!!

Now that's a valid point. Hong Kong, Singapore there is no space to build anymore. While Dubai has a lot.

You cannot compare Dubai to matured markets like Singapore, Moscow, London. These places have seen the up and downs, twists and turns of a cyclical market. What has Dubai seen. Dubai is still on the starting point of the cycle.

There are countries like the U.S. where you have real estate indexes where you can analyse how that particular areas are performing. You can approach authorities to see what prices the last umpteen number of properties were sold for.

Nobody knows how Dubai will move in years to come. If it moves up, everyone will be happy. If it does not, we will be licking our wounds.

At the moment, Dubai can be compared only to Dubai and no other place.

Regards

Roshan

 

[DAYFox]

Now that's a valid point. Hong Kong, Singapore there is no space to build anymore. While Dubai has a lot.

You cannot compare Dubai to matured markets like Singapore, Moscow, London. These places have seen the up and downs, twists and turns of a cyclical market. What has Dubai seen. Dubai is still on the starting point of the cycle.

There are countries like the U.S. where you have real estate indexes where you can analyse how that particular areas are performing. You can approach authorities to see what prices the last umpteen number of properties were sold for.

Nobody knows how Dubai will move in years to come. If it moves up, everyone will be happy. If it does not, we will be licking our wounds.

At the moment, Dubai can be compared only to Dubai and no other place.

Regards

Roshan

That is what I am trying to say all in all over and over again

 

[yang]

to invest in business bay

If you have any projects in business bay for sale, pls let me know.
my cell 050 1365918
many thks.

For argument sake, If my entire fortune was a billion pound, I wouldn't hesitate in putting 900M in Business Bay as an area. [90% of my entire capital shows how much faith I have in it, and how much I beleive it to be an extremely LOW risk investment, and the best in the world today!]

I'll probably spread it between several developers, and will only use the largest names to avoid surprises from new-comer and smallish developing firms.

Rentals will keep increasing for few years, and I expect the government to end up having to put a cap towards the increase per annum similarly to what was done for the residential properties after the huge rental increase in 2003/2004. In 2005, the Gov capped the increase by 15% per annum, and then in 2006 it lowered the cap to 7% every 2 years! But that's to stabilize the market which was going out of control with those increases, and making Dubai harder to live in if it was to keep soaring at that rate!

I am employed by DAMAC Properties, and work in their Mayfair office. Feel free to pm me if you wish to hear about our availabilities there, and I'll be happy to go into more details if you wish to. We can arrange to speak over the phone for a start, and I can also go through a powerpoint presentation that I have designed specifically for commercial investments in Dubai! [it includes facts and figures of capital growth there for the past years, and the projections for the future will be left for the investor to imagine once enforced with the full pack of information that we can provide]

Regards,


Rammah

 

[sameer.dada]

I'm not an agent. I'm an investor. To give you my opinion, if you can find an office for only aed 1,000 per sqft for sale, BUY IT! And email me the details, i'd like to buy it as well.
I thought business bay property was upwards of 1500 aed/sq ft.

For the agents posting, please post some figures about current rents. What is the yearly rent amount there if any projects are finished? or estimated rents? Is there more demand for under 1,000 sq ft offices in Duba or for bigger ones?

Thanks.

 

[sameer.dada]

Century Groove - What rates AED?sqft are you getting for offices for sale in Business Bay?

Damaac lately doesn't seem to have a good reputation anymore. I wonder what went wrong. They were so strong in the begining. But now everybody is advising against buying form them??

 

[docc]

I recently visited business bay (my poor SUV went through hell!) and there were atleast a 100 towers under construction. Most of the plots were boarded up and there was some sort of activity going on most plots. However, the one's that have come really far are Bay gate, Churchill Executive, One Business Bay and Vision tower. There were also a few other that were a few floors high but i don't remember their names.

BBay is a great investment and has a lot of potential. However, there will be a point in time when there will be too many offices in the market. I was told by a reputable source that the annual population growth in dubai is 8% which equates to about 70,000-80,000 people moving to Dubai each other. This clearly tells us as to HOW many office and residential units will be required.

At present, there are only 2 freehold office spaces available ON SZR. First is Escan tower by ACI and the second one is The Onyx by Ishraqah. JLT is freezone and can only be used by people in the metals and commodities business. Tecom is also freezone but can only be used by people in the media and telecom business.

This clearly explains how much of FREEHOLD office space is required in Dubai. BBay is the answer to that and hence a very stable development. BBay plus DBD equates to Manhattan - Wall street and midtown combined together. Prices are bound to hit 3000/Sft in the next 6 months and i believe, most of the new announcements at Cityscape will be in that range.

Good luck to everyone!

 

[Fran]

I can offer a bit larger than 4000 sq.ft office space for AED 1750 per sq.ft from the resale market.
It's a DAMAC development. Maybe you can PM me if interested. It is a very good price.

Regarding the Business Bay, here is brief overview: Business Bay in review : Dubai Chronicle

 

[docc]

I can offer a bit larger than 4000 sq.ft office space for AED 1750 per sq.ft from the resale market.
It's a DAMAC development. Maybe you can PM me if interested. It is a very good price.

Regarding the Business Bay, here is brief overview: Business Bay in review : Dubai Chronicle

Damac? Which project is that in? PM me with details.

Thanks.

 

[sameer.dada]

docc - thanks for that detailed post. It was helpful. But Im not so sure about 3,000 in BB byt this cityscape. Maybe expensive developers like Omniyat, but there are so many developers there.
How are re-sales for BB? What is the area is Dubai which has most activity for re-sale now?

 

[junaidrafique]

Business Bay is a great long term investment based on the fact that there are still no dedicated commercial zones in Dubai other than DIFC which is limited in space. As long as there's 0 % income and corporate tax companes will locate offices in Dubai. Developers like Omniyat have placed a lot of towers here and for this good reason. But since there is no infastructure there, those developments ready in 2010 are the ones to go for and will see the greatest rise in premiums. If you want to know more about Omniyat's offerings in BB let me know.

 

[Roshan]

Business Bay is a great long term investment based on the fact that there are still no dedicated commercial zones in Dubai other than DIFC which is limited in space. As long as there's 0 % income and corporate tax companes will locate offices in Dubai. Developers like Omniyat have placed a lot of towers here and for this good reason. But since there is no infastructure there, those developments ready in 2010 are the ones to go for and will see the greatest rise in premiums. If you want to know more about Omniyat's offerings in BB let me know.

What would be the prices for Omniyat offerings in BB.

REgards

Roshan

 

[docc]

Omniyat is offer properties directly right now. Starts 3500/Sft while those that are creek facing have an asking price of AEF 7500/Sft. Absolutely ridiculous and untrue prices!

 

[sameer.dada]

Where is the best place to find distress sales? Any good web sites for listing of uae properties?

 

[docc]

Sameer,

There is no website listing distress sales. If that was the case, you wouldn't find any properties available there as they would get snapped up in seconds!

If you're a local, then open up the freehold papers and skim through them. I do that all the time and find atleast 10 distress sales every single day

Good luck.

 

[junaidrafique]

Doc, I challenge you to show me where Omniyat are listing their properties for 7,500...pls let me know. If youcan't get me the proof of your generalisation then I suggest u apply for a job with Damac.

 

[Rammah]

Doc, I challenge you to show me where Omniyat are listing their properties for 7,500...pls let me know. If youcan't get me the proof of your generalisation then I suggest u apply for a job with Damac.

Why are you dragging DAMAC into this topic Junaidrafique?

Rammah

 

[docc]

Doc, I challenge you to show me where Omniyat are listing their properties for 7,500...pls let me know. If youcan't get me the proof of your generalisation then I suggest u apply for a job with Damac.

Hmmm, I seem to have stepped on a nerve there. There is no need to get that defensive my friend. As for that price I quoted, it came through the web. I will try to get the source for you however. Again, you need to take a chill pill mate I have no personal interest vested in my statements. Infact I myself am looking at buying office space in The Opus .

Regards.

Edit: Found the link: http://www.skyscrapercity.com/showthread.php?t=423124&page=6

Please read post 107 and thereafter. Direct quote:

"683.94 sqft 1bdroom is listed at 3077730 AED and Omniyat says 1bd rooms are sold out, which is at 4500AED/Sqft

they are selling 1bdroom lofts for 7500 AED/sqft"