Here is how it is right now in Dubai

[Loser69]

Sorry people, but regardless of whether Dubai has any cash or not - the media are literally destroying the country with the endless reports of doom and gloom. Expats forums are full of outrageous rumour and FEAR is running wild.

The big developers are busily delaying and 're-phasing' projects but there is no communication of what is really happening.

It broke today that the chairman of Emaar irresponsibly talked of his desire for merger with nakheel - again fueling wild speculation and rumour.

There are literally dozens of sites where there is NO ACTIVITY whatsoever.

Today a big developer TAMEER laid off over half of the staff !!!

The best talent is no doubt dusting off the CV as real class staff do not hang around with 'loser' companies.

Forget dubailand, forget COA, forget Meeras, forget Waterfront, forget Bawadi, forget palm jebel ali and palm deira - all gone.

If you have off plan - you have lost your cash. If you have a near completion - get ready to rent or lose the big premiums.

Dubai is a disaster at the moment people - an absolute, unmitigated disaster. A total, utter house of cards.

It really does make the 'genius' architects of the dubai dream look like a bunch of incompetent morons - look at the likes of limitless - 400 billion under development and they cannot pay their 400 staff ???

Look at City of Arabia - a 5 billion development managed by 2 blokes who run a taxi firm - WHAT - why did any of us believe any of it.

The lucky ones bough before 2005 and sold by July 2008. They were the clever ones - everyone else has lost their shirt i am afraid.

DO NOT PUT ANY MORE MONEY IN DUBAI - you will LOSE !!!!!!

 

[monsi]

Good grief.

Your post started off well, highlighting the problem media fear and propganda has on individual behaviour and economics.

You then started a panic-fueled rant. Perhaps a Prozac may be in order here.

You want doom and gloom - try the UK.

 

[Loser69]

prozac

going to need a whole bottle

it is getting worse day by day and i feel there will be loads of defaulters on loans - mortgage, cars, personal loans etc because if an expat is made redundant he / she has no choice but to flee on the first plane because you get put in jail if you cannot make your payments.

This will only makes banks behave worse than they are now and it will crank up the panic.

Lots of one way tickets being considered i reckon.

If i get made redundant - car, airport, bye.

 

[zombie]

Imagine what such an exodus would do on rental returns, I would not be surprised if returns fall to 5%(HORROR OF HORRORS, we would get what the world is getting) of value(which is already hammered). I wouldn't be surprised in the least bit.

 

[eyeC]

don't forget about maintenance fees which must be paid regardless of you renting

if most of the construction workers leave the country you will have difficulty renting

worse case scenario you will be left with an empty flat plus maintenance liability for the next 30 years

who will buy a liability at this time??

 

[georgihh]

don't forget about maintenance fees which must be paid regardless of you renting

if most of the construction workers leave the country you will have difficulty renting

worse case scenario you will be left with an empty flat plus maintenance liability for the next 30 years

who will buy a liability at this time??

This is a big problem
All the service charges are at chaos in Dubai at the moment.
The developers are competing with each other who receive more service charges per sqft.
The people are still poring to Dubai and humanitarian disaster could be expected.
Dubai needs a peaceful life - is too much too quick and they cannot handle it
On top of that the people with the money are gone and left behind only enormous amount of people searching for jobs.
Expect a very tough law in the near future – this is the only way to handle the situation

 

[zombie]

This is the worst depression we have ever encountered in our lifetime. Maybe for some our grandparents saw the Great one of the 30's, don't know if comparisions are accurate. It took a lot of time & a major war against Hitler to sort that out.

Who will the Hitler of our time be?? Till then, all I can say is those who are in it, Chin Up for the sucker punch & take it smiling. History shows that those you survived & stayed fared better than those who lost & ran. Maybe some can still cut our loses. Wish I knew what is a better option.

ANY IDEAS!!!!

 

[MASHH]

I agree with the media thing, on the other hand you can't say things will get worst or dont invest in Dubai coz this is not right..

Reports from UK , US , Asia have acknowledged that Dubai is still the number one place to put your money in...why ?? simply coz Dubai didnt get affected from the big crisis originally but the are just being cautious and BANKS who are the key player in the market and they are the ones that control the market as they have the CASH..developers cant get funding from banks and banks dont have more money to give.. NO LIQUIDITY

Believe me when I say the smart ppl are the ones buying now as prices are DOWN and this is coz ALLL INVESTORS bought cashh and lost huge amount of money outside and they are selling cheaply with a profit of 10-30% only and they are happy as they wanna make up their losses..ppl wanna buy now but the problem is FINANCE..

my opnion is that things will get better in the coming 2-6-8 months and everyone will be happy again and prices will go up inshallah... just be positive and all you hear abt firing and laying off more than half its all rumours but companies are firing ppl but not in real huge amount..

one day things will pick up and we will talk again loser69 and i hope youll change your username to rich again 69

Regards,

 

[sasherwani2]

You definately are living under a rock in Oman.

 

[eyeC]

if you bought a ready property in Dubai its not as bad as you might think reasons

1- its giving you yearly dividend(rent) might go down but still you getting something

2-its better than having money in a bank which can go bankrupt i know the law right now protects your money in local banks for two or three years but still
you are protected with your money in the property for longer term

3-hedge against inflation with all the printing around the world for the bailouts
at some point down the path high inflation will follow so you will be protected against future high inflation

4- you can live in it while you working in dubai saves your rent which is high in most places and sell it when you leave

5- you did better than most people who invested in the stock market weither in us or india or local markets

6-you did better than most who invested in business rented high end shops for long duration

7- you did better than most who invested in Ajman or other emirates offplan properties


now if you invested in offplan property the case is different

1-most likely your developer will not finish the job and this goes for large developers and small

your money will be with the developer for long time before you decide to pull out with 30%loss taking into account other costs involved it might be worse


2- if the developer started the job and do continue with the job you will get a very low quality end result

and the reason is most developers right now requesting consultants to cut back on the staff of the project

leaving 1 or 2 to run the project with no considerations for quality and safety whatsoever

they reducing the costs by hiring junior engineers to complete the job ,reducing the costs by using low end finishing materials ,reducing the costs by doing redesign to the building making changes like smaller swimming pools ,balconies ,.....
they r reducing finishing quality of lifts ,bathrooms,doors .windows,anything you can think of

i went to see a finished building by a a high end developer i was shocked at the finishing quality


trust me its becoming a joke if the government don't make strict rules to tackle the issues fast

 

[laguna33p]

ONE DAY THE RECESSION WILL BE OVER AND WE WILL ALL BE A HAPPY BUNCH AGAIN