Dubai property market taking a nose dive?

[monsi]

A UK agent told my wife that the Dubai property market is taking a nose dive.

He went on to advise her that she should not be taken in by agents in Dubai.

He said that unless a property is an exclusive development, e.g. The Pearl, it was of no interest to buyers.

Any idea what is going on?

 

[Stephendxb]

A UK agent told my wife that the Dubai property market is taking a nose dive.

He went on to advise her that she should not be taken in by agents in Dubai.

He said that unless a property is an exclusive development, e.g. The Pearl, it was of no interest to buyers.

Any idea what is going on?

Yes, someone doesn't know what they are talking about................

 

[Wannaberich]

The agent probably read another unresearched report by another ignorant British journalist who has issues with Dubai.

 

[sajburud]

yes dubai property going down

well i agree dubai property is going nose down and all saying no are just agents trying to keep a calm and fool people but reality is there are no buyers in the market unless the property is ready
no loans no money from investors in the market

 

[Sean@Phuket]

Yes, someone doesn't know what they are talking about................

The UK ... The hub of negativity !!

I suppose he said the UK market is about to sky rocket.

 

[monsi]

I think he may have been trying to buy our Dubai home at a knock-down price.

I just wanted to ask the question here to find out what others think.

 

[georgihh]

A UK agent told my wife that the Dubai property market is taking a nose dive.

He went on to advise her that she should not be taken in by agents in Dubai.

He said that unless a property is an exclusive development, e.g. The Pearl, it was of no interest to buyers.

Any idea what is going on?

The agent is right.
What is happening in Dubai was supposed to happen after one year but the financial crisis and the cash flow out of the country accelerated the situation.
Regarding the of plan properties I don’t think anybody will splash the money when the cash is the king.
Dubai had a couple of year’s double digits inflation and next year will be deflation.
What goes up comes down.
On top of that the $ is getting stronger and stronger and is going to be very difficult for fresh money to come in.
Unfortunately all the flippers and the agents will have to look for another job but nothing we can do – that’s live.
Anyway the rental business will be ok for some time that’s way the completed project will keep value

 

[iced]

falls

yes prices are beginning to fall and some have fallen over 10% especially the recent off plan purchases. banks are not willing to lend more than 70% so buyers are struggling to raise if infact there are any buyers.

Even some completed projects like discovery gardens have prices falling 3-5%.

Now is the time to wait and watch as the market falls. the government controls the supply so it can step to make sure that the whole market does not crash

 

[georgihh]

yes prices are beginning to fall and some have fallen over 10% especially the recent off plan purchases. banks are not willing to lend more than 70% so buyers are struggling to raise if infact there are any buyers.

Even some completed projects like discovery gardens have prices falling 3-5%.

Now is the time to wait and watch as the market falls. the government controls the supply so it can step to make sure that the whole market does not crash

Discovery gardens prices will drop more once the people find out that they need to pay 20000.00 DHS per year per studio for some kind of cooling system

 

[Wannaberich]

Banks apparantly will go back to lending 90% soon so that will help greatly.

 

[John]

Banks apparantly will go back to lending 90% soon so that will help greatly.

Where did you learn this?!

 

[Wannaberich]

Where did you learn this?!

Another forum.A few people were saying it quoting good sources.

 

[georgihh]

Another forum.A few people were saying it quoting good sources.

90% or 70% of what?
Only from the original price, no bank will give you 90% of the asking prices.
The premiums and the market appreciations you pay from your pocket.
If I am mistaken please correct

 

[Mujteba]

Hi Guys

I am noticing a drop in a lot of prices and the number of emails i am getting on property for sale has gone up post citiscape. I bought a furjan villa in the resale with a 9% premium in sept, searched and ran around the whole of dubai to find one. now i have the chance to buy 3 for 4%....so quite extraordinary how markets have turned. I also think alot of buyers need to release cash, they dont have much choice particularly those in the sub continent where property and stocks are falling like there is no tomorrow - pakistan for example. So all in all not a good mix, Hope abu dhabi save the day for dubai.

i am hearing alot about investing in labour camps as the next big thing, has anyone come across or know anything about these?

regds from the UK...

 

[talk]

Hi Guys

I am noticing a drop in a lot of prices and the number of emails i am getting on property for sale has gone up post citiscape. I bought a furjan villa in the resale with a 9% premium in sept, searched and ran around the whole of dubai to find one. now i have the chance to buy 3 for 4%....so quite extraordinary how markets have turned. I also think alot of buyers need to release cash, they dont have much choice particularly those in the sub continent where property and stocks are falling like there is no tomorrow - pakistan for example. So all in all not a good mix, Hope abu dhabi save the day for dubai.

i am hearing alot about investing in labour camps as the next big thing, has anyone come across or know anything about these?

regds from the UK...

I've looked at 1000's of for sale ads over the past 2 months.Estate agents are mainly interested in new developments being launched.For those who also do resale I believe are mis/informing their clients of the true value of there investments.Keeping prices up and then being unable to sell them.Investors who are new think that it always cheaper to buy offplan,but there's much better value in the resale market.

Everybody do a survey over the next 21days and you will find a pattern.Competition has started in the resale market.Properties have dropped between 200/250 drms per sq/ft.Ive watched different sites and slowly you will see prices per sq/ft coming down.

Do a survey and let everyone know the outcome and if you see a pattern.

 

[rg_andi]

hi Georgi,

is this true ie charges for cooling system? does it apply for all properties?

 

[Mujteba]

Hi that is a good idea. I have been tracking Furjans for the last 6 months and i can say that they are on their way down as the current buyers have to make a payment in november for a futher 10% so there are signs the speculators and those who could never afford these things are being filtered out.

When do u all think there will be a cooling off in selling/buying? Will these new laws of november make any changes?

regds

 

[georgihh]

hi Georgi,

is this true ie charges for cooling system? does it apply for all properties?

Not all some of them where the system is installed - Palm Jumeirah, DG and some more

 

[georgihh]

Hi Guys

I am noticing a drop in a lot of prices and the number of emails i am getting on property for sale has gone up post citiscape. I bought a furjan villa in the resale with a 9% premium in sept, searched and ran around the whole of dubai to find one. now i have the chance to buy 3 for 4%....so quite extraordinary how markets have turned. I also think alot of buyers need to release cash, they dont have much choice particularly those in the sub continent where property and stocks are falling like there is no tomorrow - pakistan for example. So all in all not a good mix, Hope abu dhabi save the day for dubai.

i am hearing alot about investing in labour camps as the next big thing, has anyone come across or know anything about these?

regds from the UK...

Sensible post.

Tough time is coming.
Some projects are well overpriced particularly the recent from Emaar and I don’t know how they will manage the situation.
You can’t sell a villa which cost you one million for 5 million – five times!!!!!!
But the very bad news is that buyers are gone as you said people from Pakistan .
Not officially they were involved in 20% of the properties deals in Dubai.
Europe and Russia are also pulling out.
Who has left – Iran.
The locals and the Saudis they don’t buy freehold as they can buy in Jumeirah

 

[monsi]

Our Dubai Villa is due to complete in a few months (allegedly). There are no more payments to make until complete and we have no financing on it so we were not desperate. She got the impression that he wasn't very happy with that.


The chap was very strange he kept telling my wife that prices had already dropped dramatically in Dubai and something he had sold for 25m 6 months ago would sell for 10m now.

As this is a worse scenario than in the UK, this did not make him seem credible.

Added to this he then went on to ask her if we would like to sell one of our UK properties.

Considering the state of the UK property market - the answer was a categorical no.