Dubai property market starts its comeback

[Sole Dubai]

Property prices in Dubai are bottoming out with initial signs of confidence returning to the market, new research said yesterday.

"Distressed stock is gradually clearing, with further signs of consolidation as volumes continue to pick up. Also, more recently, mortgage providers have moved to ease their requirements, raising loan-to-value (LTV) and relaxing credit norms, which we view as a further sign of some normalcy returning to the market," HSBC said in its "Property Ladder" report.

According to the bank, the May transaction survey suggests that the market is starting to bottom out, with agreed prices up four per cent and five per cent month-on-month (m-o-m) in April and May, respectively.

"On the ground market testing confirms that the distressed stock is gradually clearing due to renewed interest as well as some sellers repricing, pulling their properties off the market, or putting them up for lease. Sentiment seems to be improving and sellers are now less willing to negotiate. Anecdotal evidence also suggests that foreign investors seem to be back in the market and there are bulk buyers of property for investment purposes."

Besides, most of this year's transactions have been conducted in cash, but mortgage purchases are starting to pick up following the recent change in policy by lenders. Apparently, Standard Chartered and RAKBank are leading the way, the report said.

While agreed prices are now down 23 per cent from the September 2008 peak, "we believe that it is important to compare agreed prices to advertised prices in order to fully understand the extent of the downturn". According to the report, prices are down 65 per cent from the peak asking prices to the agreed prices.

David Lepper, Head of UAE Equity Research, HSBC Global Research, said: "Market data from April and May show a range of positive indicators: agreed property sale prices are rising, volumes are holding up well, and banks have loosened their lending criteria. However, we will not be able to discern a sustainable trend until later in 2009, and while we note these positive developments, the market as a whole is coming off a very low base, given the sharp declines since the market peak. Credit growth remains subdued, and the UAE economy still has challenges to deal with."

While apartment prices (which account for 85 per cent of transactions) have started to turn around, up nine per cent in May 2009, villa prices continue to come under pressure, down 11 per cent m-o-m. Villa agreed prices have now fallen 49 per cent since the September 2008 peak, compared to only 16 per cent for apartments.

The steeper decline in villa pricing is partly due to a sharper upturn last year, but is also a result of affordability, in light of lower mortgage LTV. "Transaction prices could be understated as buyers could potentially understate the value of their property in order to reduce registration fees. That said, however, the discrepancy is unlikely to be large, since properties with suspiciously low values are typically investigated by the regulator. This means that actual prices should be somewhere in between asking and agreed, which are now starting to converge," HSBC said.

However, there are still potential risks. With the summer approaching, volumes are likely to soften leading to short-term price volatility. The school year coming to an end in June, and more supply coming on the market could lead to renewed weakness.

According to the report, construction costs are likely to come down further although the building materials price index points to a 20 to 30 per cent price drop from the July 2008. "We believe that construction costs are likely to continue to trend downwards," HSBC said.

YIELD COMPRESSION

Yield compression is now apparent as rentals continue to slide (down 41 per cent year-to-date),while prices start to stabilise. Rental yields are down from seven per cent in March to 5.9 per cent in May. However, yields on asking prices are higher, upwards of 10 per cent in May.

Rental yields initially expanded, as prices were first to get hit by tightening credit conditions. Rentals, on the other hand, were only impacted after the first lay-offs. "Considering that rentals are a pure reflection of demand/

supply dynamics, we believe they are likely to see further weakness as more stock comes on to the market."

According to HSBC, the May survey of advertised listings shows initial signs of stabilisation as transaction prices lead advertised aspirations. While down 18 per cent m-o-m in March, advertised prices in Dubai were up three per cent in April and down one per cent in May. The advertised data highlights no m-o-m change in apartment prices in May, but a three per cent m-o-m decline in villa prices.

Dubai advertised listings saw a gradual decline over the past two months despite more stock being delivered, falling 11 per cent from 5,782 in March to 5,173 in May.

"We believe this adds further credence to our analysis and shows that stock is clearing and/or listings are being pulled off the market. In any case, this is supportive of pricing. Also the shift in mix towards lease listings persisted in May 2009, increasing to 15 per cent, the highest level since we started our survey in September 2008."

ABU DHABI

Advertised prices in the capital are also showing signs of stabilisation, up two per cent and seven per cent, in April and May, respectively. Villa prices underperformed apartments, declining by four per cent m-o-m in May, while apartment prices rose eight per cent m-o-m. The bank believes this has to do more with lower affordability due to tightening liquidity than preference, said HSBC.

QUALITY UNITS IN FOCUS

In Abu Dhabi and Dubai, buyers and tenants are showing renewed willingness to pay for better units and better locations, a report by Sole Dubai said yesterday. "Even if decline patterns differ between Dubai and Abu Dhabi, falling prices are creating opportunities that boost demand in both markets. In April, we observed strong leasing and higher sales volumes," said Trevor Bondoro, Director of Sole Real Estate in the Q2-2009 real estate report on Abu Dhabi and Dubai.

"Since mortgage activity is low, cash buys constitute a significant portion of transactions. Therefore, to accurately assess price trends, it's critical to have access to data sets containing both transaction types. In Dubai, Emaar is faring best in terms of demand and pricing," he added. Bondoro said with a flight to quality clearly under way, end-user preferences are differentiating prices in favour of developers such as Emaar and preferred locations such as Dubai Marina. In the Q1 of 2009, Emaar master developments accounted for approximately two-thirds of sales and 57 per cent of new leases. "More specifically, units developed directly by Emaar represented over half of sales and 39 per cent of new rentals."

Dubai Marina was the most popular area among renters, capturing 30 per cent of all new annual leasing contracts. Emirates Living came in second, at 16 per cent.

As for Abu Dhabi, "the issue of first-phase master development integration will leave certain Abu Dhabi developers more vulnerable in the short to medium term," said Bondoro. Sole Dubai's analysis shows a positive correlation between price performance and proximity to central Abu Dhabi.

 

[financier888]

numbers misleading?

What these 'experts' are not telling us, when it comes to their 'statistics' - is - 'what numbers they are basing their projections on' - 'the 'quanitity' of the transactions. If it is a relative small volume - of course, indicators will show an increase - but to draw the conclusion that 'the market shows signs of 'bottoming out' flies in the face of reason and common sense - especially as we are going into the summer and tens of thousands of families are planning to move out after the school year ends - this month. (over 55,000 transfers for school children were filed months ago....!)

What is also NOT being taken into account is - 1) the new inventory coming on the market - over 30,000 units and 2) the investors that hold mutiple units - many that are empty becuase they cannot find tenants and will ultimately seek to liquidate by the end of Q 4. (they can't find buyers either)

Even during the boom times many of the published reports by these gurus were way off the mark - especially those published by the banks! fortunately for them - most of the public and their bosses have short memories... Why should we continue to believe them, as the they may be surely, self serving.

Unless we know the amount / volume of the transactions - namely the data, it's 'inconclusive'. Let's say that in a given month there are 100 transactions - out of a possible 10,000 units on the market, and those 100 transactions show a nominal increase in price - possibly based on location. Do those 100 transactions truly reflect a market where there are 9,900 units still sitting vacant waiting for a buyer?

Let's see what the experts have to see by August....

 

[Sole Dubai]

This interview was published on Sheikh Mohammeds website of an interview he had with the general public... Shame I never got to hear about it prior to it being conducted, I have a lot of questions for him.

UAE's path to recovery will be faster and signs manifest

The UAE's path to recovery from the global economic crisis will be shorter than most other nations and early signs of resurgence have already appeared, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, said yesterday.

In a wide-ranging response to questions by people living in the UAE and countries such as Saudi Arabia and the UK, Sheikh Mohammed said, "the symptoms of recovery have started to manifest", and the duration of recovery "is expected to be much shorter than that required for other economies".

In his first e-interaction with the people, similar to one he conducted with the media, Sheikh Mohammed covered topics ranging from the UAE's response to the financial meltdown to education, women's empowerment, healthcare, housing, regional politics, government and more.

"The implications of the global financial crisis require that we revise our 2015 plan. The plan is currently under a careful review," he said. "Should we feel that the timelines set for our initiatives need to be adjusted, we will adjust them in order to maintain a reasonable and actionable plan, and ensure the achievement of its objectives."

Sheikh Mohammed emphasised, however, that he expects "a considerable number" of the 2015 objectives to be achieved, "given that the actual achievements during the past years of the 2006-2015 plan have been accomplished ahead of schedule". He added: "Our nation possesses a state-of-the-art legislative framework, our economy is strong, diverse and resourceful. Our financial system is efficient, and our infrastructure is developed to the highest international standards.

"We employ the best and most important of human expertise and qualifications and our business networks are established around the globe. Our accomplishments within the last 10 years would take decades to accomplish by other economies."

Dismissing negative news reports in Western nations as "the price we pay for our great success and for maintaining an open society", Sheikh Mohammed said: "We have self-confidence in the UAE's ability to continue to make economic and social progress."

 

[Sole Dubai]

This was a report by HSBC

Property market returning to normalcy, says HSBC

Most industry participants and analysts yesterday agreed with an HSBC research report that said the gloom and doom in Dubai's real estate sector has ended, with property prices bottoming and initial signs of confidence returning.

"Distressed stock is gradually clearing, with further signs of consolidation as volumes continue to pick up. Also, more recently, mortgage providers have moved to ease their requirements, raising loan-to-value (LTV) and relaxing credit norms, which we view as a further sign of some normalcy returning to the market," HSBC said.

According to the bank, the May transaction survey suggests that the market is starting to bottom out, with agreed prices up four per cent and five per cent month-on-month in April and May, respectively.

Apartment prices (which account for 85 per cent of transactions) are up nine per cent in May, villa prices continue to come under pressure, down 11 per cent month-on-month. Villa agreed prices have now

fallen 49 per cent since a September 2008 peak, compared to only 16 per cent for apartments, HSBC said.

 

[Wannaberich]

I dont think much will happen until after the summer.For the next few months I believe things will stabilise as most reports are indicating.Hopefully real improvements will start after Cityscape.By then the worlds economies which are already improving,will be well on the road to recovery.Also by then banks should be lending normally again.Also the dollar has weakened quite a bit which makes buying for overseas investors cheaper.
I think come October/November things will be alot more positive.

 

[georgihh]

Don’t cry again

It doesn’t get better just approaching the bottom.
The people are disappointed. A year ago everything was based on speculations - no foundations.
But you never know one more baby balloon and time to go home.
As I said before Dubai is Ok for 1 million people, anything above that - out of proportion.
Simply there is no money and business for more than one million people in Dubai.

 

[PropGuy]

I sense before aug or nov market will go down onces more, Abu Dhabi is very smart they took the money out at the right time from Barclays. Right now market is too much risky till fall until it gives a clear sign of final recovery.

 

[Sole Dubai]

Increasing activity suggests Dubai realty market recovery by late 2010

Dubai's real estate sector is expected to recover by late 2010 with emerging signs of increased activity, industry sources said yesterday.

"In Dubai, we expect a recovery to happen in 2010, although it will not be a sharp one. The real estate market will be a far more matured with competitive mortgage rates and good amount of affordable housing in place by 2010," said David Macadam, Director Sales and Leasing, Better Homes.

According to Elaine Jones, CEO of Asteco, a real estate and property management company, cash and confidence are the two elements needed to bring confidence back into the real estate market in the emirate.

"The recent announcement of the issuance of a six-month visa to property purchasers is a very short notice for buyers to stay in the market. It should be for a longer time. One cannot do much without a visa in this city. One cannot apply for Dubai Electricity and Water Authority facilities and there is no point in selling a property if you cannot have people live in it," she said.

Steven Henderson, Partner at law firm Clifford Chance, said: "The next few months will be very quiet with little real estate activity in Dubai. However, by the end of this year we could see a number of consolidations of developer companies through mergers and acquisitions. Recovery can be expected towards the third quarter of 2010."

Speaking on the sidelines of the Cityscape Connect Business Breakfast Dubai, Henderson said the law in Dubai would need to catch up with the progress of the real estate market. "In the past six to seven months, the Real Estate Regulatory Agency has been proactive and introduced a number of regulations into the market. The Strata Law will help to bring back confidence into the market," he added.

Sunil P Gomes, Chief Guru, Guru Real Estate, said the real estate sector has witnessed a dramatic growth in the past two years.

"Today master developers and developers are looking seriously at their feasibility studies. Dubai has been and still is an emerging market with developers making a return of about 16 to 17 per cent on their investments. While earlier they were making about 40 per cent return, now they have to be more realistic," he said.

According to Better Homes, Dubai is set to witness 29,000 new residential units to be added onto the property market.

Macadam said the company has recorded an increased number of new lease transactions for Dubai.

"In May we recorded about 400 lease transactions, in February the number was about 208, in March we recorded 308 transactions and in April these totalled 323 transactions.

"A third of those people are coming as new entrants from the United Kingdom, Western Europe and North America. They are mostly in the mid-managerial level and they are coming now because the salaries in the market today are at a certain level that is not too high or too low," said Macadam.

 

[jags]

Dubai needs more people.the people with desposable income and good jobs.at present people are leaving.until Dubai can bring up to 2 million people all the existing units and almost completed units will not be occupied.

the reality is where these people will come from and why.there are not enough jobs. companies are packing up.real estate offplane sector is dead.it is not going to be active for any forseable future. so architectural firms contractor companies suppliers project planners are all gone for good.tourism is affected.

even when world economy starts to recover Dubai will have to make extra efforts. to bring world investment either from private individual or foreign companies. trust in Dubai has to be reestabilished. people are bruised.lot of companies are not paid their dues by gavt own companies.there are broken promises.

personally i love Dubai.i have my properties rented out. it went up 200 % on paper and returned to its original price.but i am still achieving 10% return. i haven't lost anything.i would love to see Dubai turn around.

i always favoured Dubai.but now i have my doubts.there will never be any boom for next 7 to 10 years.prices will stabalise in near future at the current level and stay there for long time.but what about thousands of people who have lost in offplane projects which are not going to take off the ground. gavt has not done anything for them. not fair.

i was lucky to buy in early 2005.even luckier t o be able to offload four off plan units bought last year.3 of them were returned to the developer just before market collapsed without any penalty. and the last one i could sell at a loss but recovered money in currency exchange.but my heart goes out for those who have lost their life savings.

Dubai needs to do more in terms of legal infrastructure.here laws have become laughing stock.they are changing everyday like a french fashion.Rera- escrow accounts and other lagislations have no meanings unless they are effectively implimented.

 

[PropGuy]

markets have started to come down.

 

[mpat]

Everything that goes up will come down, that s the principle , and on the other hand , everything that goes down will go up. How much and when ? is the question. the answer should be the faster it went down the sooner it will go up, but not upto the previous high levels . That level will be achieved in 5 to 7 years.

 

[Sole Dubai]

Tangible signs of UAE recovery by 'end of the year'

The first tangible signs of economic recovery in the UAE will be witnessed towards the end of the year and the current positive indicators of recovering markets, high oil prices and reports of a possible bottoming out should be met with caution, say economists and industry leaders.
With local markets on the upswing, oil floating in the high $60s and the real estate market witnessing few sales, public perception that the economy may have seen the worst of this global recession is premature, they said.

The full effects of several measures governments and central banks have taken to mitigate the crisis are yet to be seen and felt, meaning uncertain times remain.

"I see the UAE economy bottoming by the end of 2009 with weak recovery thereafter in L-shaped scenario not 'U' or 'V'-shaped," Dr Eckart Woertz, Programme Manager, Economics, at the Gulf Research Centre, told Sole Business.

"In my view, the gross domestic product (GDP) will be between zero and one per cent for 2009.
"The global situation is slightly improving but it's still too early to tell. We might see some hiccups going forward," said Woertz.

"The global economy, which plays a major role in how our economy performs, could face massive inflation due to the ongoing monetary expansion or prolonged recession without it. So either way we are facing tough times. One must understand that this is a serious structural crisis. The economists who feel this is just a cyclical crisis are not on the right track, and all this talk of green shoots is premature," said Woertz.

The bottoming out of the real estate market after widespread distressed selling would be the key catalyst to the economy's upswing, he added.

In a report released this week, HSBC said: "The distressed stock is gradually clearing due to renewed interest as well as some sellers re-pricing, pulling their properties off the market, or putting them up for lease."

HSBC indicated the real estate market in the UAE was beginning to bottom out as prices stabilised, but warned that values could still fall further as more property comes onto the market.

Andrew Chambers, Managing Director of Asteco, however, put aside the notion of the current market reaching its bottom. "We will see the bottom and then recover in the last quarter of this year because the summer is traditionally slow even in a booming market," he said.

"The last quarter is the real deal because by then we should see a lot more mortgages and loans happening. Very few have qualified for mortgages today. It will never get back to last year's level, but the market needs more loans given, and the loan to value ratio still needs to improve," said Chambers, pictured right.

Property firm Asteco has begun recording single digit sales over the past few weeks, which, though pale in comparison to the two dozen weekly sales the firm recorded last year, is a sign of slight movement.

"In the last six weeks we started to see people putting offers on property because they believe the market is at its bottom," said Chambers.

"We have seen more interest now. People are accepting current prices as fair value. But there have only been a few sales. This is obviously better than March this year, when nothing sold. So the handful of sales we are recording now is still a better situation.

Current Asteco data for Dubai shows increasing offers for villas on The Palm Jumeirah, studios and one-bedroom apartments in Discovery Gardens and completed units at Dubai Marina.
The H?SBC report states agreed prices in the UAE rose four per cent month-on-month in April and five per cent in May, but were still 23 per cent down from its peak in September 2008.
Advertised prices in Dubai rose three per cent month-on-month in April and fell one per cent in May, while prices in Abu Dhabi were up two per cent and seven per cent for both months respectively.

Residential real estate prices in Dubai fell an average 41 per cent in the first three months of the year, according to data from property consultants Colliers.

Average prices for apartments in Abu Dhabi have fallen by 10 per cent since the end of the first quarter, while villa prices remained stable, property consultancy Landmark Advisory said earlier this week.

"In the UAE, the real estate situation still has its problems, especially now as summer time is approaching. Since it plays a crucial role in the country's economy, no recovery is possible without real estate healing first," said Dr Woertz.

Oil prices, another crucial factor to economic growth in the region, played favourably this week, peaking above $69 (Dh253) this week, before returning to $66.92 yesterday.
Citing reasons for rising oil prices, Tom Bentz, a senior energy analyst at BNP Paribas Commodity Futures Inc said: "This is all about recovery expectations. It looks like manufacturing is recovering in a number of countries, which is feeding into the belief that the worst is behind us. It doesn't hurt that the dollar is at the lowest level of the year."

"We're certainly on our way to $70, if not $75," said Stephen Schork, President of Schork Group. "That seems to be the number everyone is talking about. Given the technical momentum in this market, you cannot bet against it and step in front of this train."

Woertz said: "The current oil prices are helpful for the UAE economy. In my opinion, the prices are right and pretty well calculated because of tight supply scenarios going forward. So even in these recessionary times, it can perform well."

Meanwhile, annual inflation in the UAE slowed to 1.9 per cent in April and prices dropped between January and April led by the housing price slump. Inflation rates have decelerated quickly in the second-largest Arab economy since hitting a 20-year peak of 12.3 per cent in 2008, Ministry of Economy data showed.

"This gives us a good sense that for the year as a whole you could have deflation, and it is being driven by a sharp fall in rents," said Giyas Gokkent, chief economist at National Bank of Abu Dhabi.

"Rental increases have been the key driver of inflation in the UAE," said Monica Malik, regional economist at EFG-Hermes, which expects rental prices to fall between 20 and 50 per cent this year compared with a rise of 21 per cent in 2008.

The Ministry's data stayed true to the International Monetary Fund's (IMF) April forecast that the UAE would record one of the lowest inflation rates in the GCC at around two per cent.
IMF figures in its World Economic Outlook showed the combined inflation rate of the Middle East oil exporters would recede to around 8.8 per cent in 2009 from 10.3 per cent in 2008. "For the region as a whole, inflation pressures are projected to subside quickly, owing to lower commodity prices, rents, and economic activity," the IMF said. (With input from agencies)

 

[jags]

the basic fact remains.Dubai needs people and jobs.there are 30000 units coming to market this year. already hundreds of units are empty.population is shrinking day by day.when there are jobs and people start arriving we talk about what goes down comes up.at the moment people are leaving. if you are last one to leave please don't forget to switch off the light.

 

[Roshan]

Dubai needs to stop building and concentrate on finding ways of supply meeting demand.

Overkill is the right name for Dubai property. Building too much in a short while put the final nail into the coffin.

The rental markets have fallen and tenants are having a nice time moving into bigger houses.

Roshan

 

[Sole Dubai]

Overkill = Great Selection = Competition = Bargains

I am really pleased to see what is happening in Dubai and how the market has adapted to the financial crisis. Like it or not Dubai is now an establish property market which is improving on a daily basis! Overkill as Roshan put it isn't such a bad thing in my opinion, as I am witnessing greed being put through it's paces. Landlords who drove rents and prices up to rediculous levels because of the hype that had been created which brought a lot of demand with it. I am happy for the tenants, first time buyers and investors reaping the rewards of the credit crisis. Wherever there is doom and gloom are huge opportunities to be had. Now they having to learn to bargain and for those that took whatever they could for the sake of getting in on the act are paying the price.

I have always advised my clients to research developments, developers and locations thoroughly prior to investing and not to invest blindly. Those that took my advice and stuck to the simple fundamentals of location location are still smiling. Yes the rental returns are not as lucrative as before and the property value has dropped considerably but they haven't made any loses. If they were to sell today they would still make a minimum 15% return on their total layout. There is no such thing as bad press, if you're a seasoned investor with disposable income you stick to your formula and you'll do well in this market! Long term investments offering modest returns are now the order of the day! As with anything that goes down it must come again. It is only a matter of time before we start to see real gains within the market.

All this talk of the market returning to normalcy is just a lot of talk, yes there are more and more transcations being conducted. There definitely a lot more enquiries but is this going to be sustained or improved upon in the summer months? Summer in Dubai hasd always been my most successful period in this industry. So hope to follow suit this year and keep the tradition going.

Yes I am an optimist and all round positive consultant! I am also waiting to see where the global economy takes us all as no one can tell for sure what will happen. I am not going to get in on the act of negative talk and bad mouthing of Dubai or any other global markets affected by the credit crisis! I will however do my best to keep a positive outlook and work to improve on our services and knowledge of local and global markets and trends as one can never know too much.

Sole Dubai - Great minds have purposes, others have wishes...

 

[Brendan R]

just came back from a 10-day holiday in Dubai. The picture is very bleak.

Hotels are far from operating at full capacity, the malls are not busy (mind you, prices are 50% higher than in London, so much for dubai tax-free shopping),construction has been stopped on several projects, the building of the islands in front of the JBH has stopped (couldn't spot a single boat working),taxis are aplenty. and restaurants are far from full. It is also very expensive and getting more so except for renting. A friend of mine that moved there last summer has managed to renogiate his rent 50% lower. On the other end, school fees have skyrocketed and utility bills are through the roof. So much for cheap energy. Not in Dubai.

What was pretty funny is that all the sellers of Property dreams one could see in the malls are almost completely gone. The little stands in the alleys with Russian babes selling you real estate with just a 20% downpayment are gone.

Only one group still seems to operate, the First .... Group, whose logo and colors remind me of Credit Suisse First Boston, too funny. Anyway, I give these guys another few months, not sure they will resist the summer.

I've been going to Dubai for more than 8 years, and it's the first time I could feel such lack of buzz and disappointment.

In the hotel I was staying, staff were leaving or about to leave, the money is not good anymore apparently. Very sad.

Well, it's all unravelling after all. Dubai is not a place to live, it's a holiday destination (for 7 months a year by the way, it was more than 50 celsius last week on the beach so forget about the months of May, june, July, August and September if you want to go).

 

[Sole Dubai]

I was at the Hilton Beach this afternoon as we took a few Katamarans with some of my friends and navigated our way along Jumeirah Beach, The Palm Jumeirah and The Gulf for a few hours! The Hilton is always at full capacity and the beach was very busy with the Wavebreaker always busy day and night, despite the heat! I am actually suprised at the number of people still going down to the beach and spending the day in the sun and water.

As for the Malls with Dubai Mall and Marina Malls both opening it has devided the business between all the malls! Which has greatly reduced the traffic in Mall of the Emirates and Iban Batuta Mall! This is a great thing for me as the numbers of people tracking through the malls this time last year was rediculous and I didn't like going shopping as it meant spending a few hours for something that would normally take half an hour. I love the fact that you can get parking in Mall of the Emirates now, it is a welcome change believe me.

I am very pleased with what I am witnessing in Dubai, nothing has changed as much as what most people are trying to make out. The situation in Dubai is not as bad as in most major cities in the world, and yes Dubai is not immune to the credit crisis and ecenomic downturn. I feel people come to Dubai or look at Dubai with an already formed opinion as opposed to looking at it with an unbiased eye. If I felt that there was something really wrong and it was being covered up I will be the first to blow the whistle. However if your going to comment on something that can be easily be deciphered as to why it is so.. make sure you take a longer look! When you look, make sure you see.. just don't stop at seeing make sure you understand. If you understand then get a second opinion if it differs with yours this is not a bad thing as we are not meant to have the same opinion. This will then take away from the discussion as we will always agree. But I believe in having an informed decision and comment.

Based on where you stayed you would have had a completely different opinion on Dubai if you had stayed at the Hilton. The JBR is always buzzing day and night, the restaurants and cafes are always busy. Not some of them all of them are getting a lot of business and it is proving to be a success. The staff at the Hilton are always happy and very friendly and I find the wavebreaker to be a great retreat when in search of a good mocktail and chilled atmosphere to unwind with a few friends.

Again we go back to the simple well known comment of Location Location Location!!!

Sole Dubai - Reflections give you fair warning and good advice...

 

[Brendan R]

just came back from a 10-day holiday in Dubai. The picture is very bleak.

Hotels are far from operating at full capacity, the malls are not busy (mind you, prices are 50% higher than in London, so much for dubai tax-free shopping),construction has been stopped on several projects, the building of the islands in front of the JBH has stopped (couldn't spot a single boat working),taxis are aplenty. and restaurants are far from full. It is also very expensive and getting more so except for renting. A friend of mine that moved there last summer has managed to renogiate his rent 50% lower. On the other end, school fees have skyrocketed and utility bills are through the roof. So much for cheap energy. Not in Dubai.

What was pretty funny is that all the sellers of Property dreams one could see in the malls are almost completely gone. The little stands in the alleys with Russian babes selling you real estate with just a 20% downpayment are gone.

Only one group still seems to operate, the First .... Group, whose logo and colors remind me of Credit Suisse First Boston, too funny. Anyway, I give these guys another few months, not sure they will resist the summer.

I've been going to Dubai for more than 8 years, and it's the first time I could feel such lack of buzz and disappointment.

In the hotel I was staying, staff were leaving or about to leave, the money is not good anymore apparently. Very sad.

Well, it's all unravelling after all. Dubai is not a place to live, it's a holiday destination (for 7 months a year by the way, it was more than 50 celsius last week on the beach so forget about the months of May, june, July, August and September if you want to go).

FYI, I was staying at the Al Qasr, close to the Burj.

I'm a free thinker whose view of Dubai is unbiased (I'm not a real estate agent and do not own property in Dubai) and I believe my testimony to be a fair reflection of what is currently going on.

I don't speculate on Dubai's future and wish the region the best.

 

[Sole Dubai]

I would like to apologise if you felt my response was aimed at you Brendan.. I was making a general comment regarding some of the posts which have been a slight exaggeration! Everyone is entitled to voice their opinion, whether people would like to hear it or not! Your post was a depiction of your experiences which are different to mine and views with various influences that led you to your current stance. I appreciate how your posts are based on your experience rather than mere speculation and negativity..

Sole Dubai - A true leader seeks firmness in truth, not mob endorsement

 

[TommyC]

So what we have got here is another real estate broker marketing himself, great. If you at least could remove the link in your signature ( as well as the fancy slogans),I'm sure that would help your credibility a bit.

"Buy now, quick! Tomorrow it's to late, rush, rush, rush!"

What we are really seeing in the property market in Dubai is the real estate agents taking their last desperate breath...