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investorppty
New Member
DoBuy, Plse can you PM yr agents details as I too have a propoerty to sell in Abu Dhabi.
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monsi
New Member
A question...
This thread seems to be quite bullish and the posts for the question I asked...
are very bearish.
I am getting quite confused.
This thread seems to be quite bullish and the posts for the question I asked...
are very bearish.
I am getting quite confused.
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sameer.dada
New Member
Monsi, I know a hundred people who are willing to sell their units for 0% and cannot. So that should answer your question..
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memo123
Member
Every one is talking his position
In the financial sector that is the word for it , when you are long the market ( bullish ) you keep on convincing yourself including all people around you that the market is healthy and will hold up , and even rise . yet deep down inside you know that you are only fooling yourself and only talking your position and literally dying to get out of your position if you only had last week prices. The same hold for when you are short the market , i.e. bearish
so people with huge real estate portfolio and inventory of unsold properties have to talk the market up .
the real truth is this , not only the market is down , but the market is melting down . and it will sink like hot knife in butter .
people are selling at 0 premium and there are no buyers, last night i saw an add where one investor was selling his house at 1000 dirham below his buying price OP. , so all the signs of collapse are there and time will only tell.
oil prices are 60% below what they where , steel prices are 55% below . all commodities are at 14 months low. every one is liquidating foreign assets .
and if oil prices reaches 42-25 $ all current government projects will come to a halt and all new projected projects will be canceled . i KNOW TODAY THEY HAVE REDUCED OIL PRODUCTION , ONLY IRAN REDUCED BUY 2.5 MILLION BARREL but that didn't raise the oil prices and it blipped by 2$ and went down again
this market is driven with so much negative sentiment, and we are going to go through a deflation period where no one is welling to do anything .
I know the problem started with U.S.A but the domino effect is reaching all of us . We are one big village , and when you see market in Dubai collapse by 42% in 3 sessions . the first thing people will do is to liquidate illiquid assets like houses , cars , even furniture , at below much below market prices to get out first . especially that for foreign investors their currencies are at 7 years low . so what ever they loose in real estate they will make from converting Durhams to their currencies . Times are bad and we haven't seen the end of it we have not seen the real capitulation yet . I have seen the collapse in 87 and was nothing like this , this is a depression period and not a recession that will last for 2to 3 quarters .
the best is yet to come. so if you don't own anything in Dubai yet or anywhere in the world , put ur money literally in your pillow . and don't buy anything that you can get later at 70 or 55 % of the value in 6 months , wait .
best of luck to all the flippers and investors out there but it is time to get in touch with reality .
regards
memo
P.S. I am a investor my self in Dubai . but got to ride these furious waves and hold on tight .
In the financial sector that is the word for it , when you are long the market ( bullish ) you keep on convincing yourself including all people around you that the market is healthy and will hold up , and even rise . yet deep down inside you know that you are only fooling yourself and only talking your position and literally dying to get out of your position if you only had last week prices. The same hold for when you are short the market , i.e. bearish
so people with huge real estate portfolio and inventory of unsold properties have to talk the market up .
the real truth is this , not only the market is down , but the market is melting down . and it will sink like hot knife in butter .
people are selling at 0 premium and there are no buyers, last night i saw an add where one investor was selling his house at 1000 dirham below his buying price OP. , so all the signs of collapse are there and time will only tell.
oil prices are 60% below what they where , steel prices are 55% below . all commodities are at 14 months low. every one is liquidating foreign assets .
and if oil prices reaches 42-25 $ all current government projects will come to a halt and all new projected projects will be canceled . i KNOW TODAY THEY HAVE REDUCED OIL PRODUCTION , ONLY IRAN REDUCED BUY 2.5 MILLION BARREL but that didn't raise the oil prices and it blipped by 2$ and went down again
this market is driven with so much negative sentiment, and we are going to go through a deflation period where no one is welling to do anything .
I know the problem started with U.S.A but the domino effect is reaching all of us . We are one big village , and when you see market in Dubai collapse by 42% in 3 sessions . the first thing people will do is to liquidate illiquid assets like houses , cars , even furniture , at below much below market prices to get out first . especially that for foreign investors their currencies are at 7 years low . so what ever they loose in real estate they will make from converting Durhams to their currencies . Times are bad and we haven't seen the end of it we have not seen the real capitulation yet . I have seen the collapse in 87 and was nothing like this , this is a depression period and not a recession that will last for 2to 3 quarters .
the best is yet to come. so if you don't own anything in Dubai yet or anywhere in the world , put ur money literally in your pillow . and don't buy anything that you can get later at 70 or 55 % of the value in 6 months , wait .
best of luck to all the flippers and investors out there but it is time to get in touch with reality .
regards
memo
P.S. I am a investor my self in Dubai . but got to ride these furious waves and hold on tight .
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sameer.dada
New Member
Memo, I agree with you on all points. Oil won't fall to $40 because OPEC will reduce production even more.
So you feel its 6 months till market is back on track?
So you feel its 6 months till market is back on track?
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monsi
New Member
Thank you memo123.
Good grief.
In the UK there is a belief the Middle East is best positioned to weather this storm, but I believe that considering the ridiculous property price rises in Dubai, many people will be hoping that a little fear in the market may shake out some bargains.
Unlike the UK and USA , the leadership in Dubai may know how to safeguard their countries' economy and they have more power and resources within their gift to do this - not as easy in a democratic environment with very little money in the coffers.
Hypothetically speaking, canceling or delaying a few proposed developments will, if done correctly, should help reduce supply. I have a suspicion we will see some projects being 'strategically' delayed?
Plus I have seen some interesting ads for DIFC, which should feed off the disillusionment in the west.
It's just as well we aren't desperate to sell and we only have one Villa in Dubai, which we reserved back in 2005.
I think we will wait and see.
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Roshan
New Member
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Gashead
New Member
It really does seem to be over at least for a while. Radio interviewees last night and this morning didn't even try and put a positive spin on it.
Well, it was good while it lasted and let's hope for a soft landing.
I really don't envy anyone who has bought off plan.
Well, it was good while it lasted and let's hope for a soft landing.
I really don't envy anyone who has bought off plan.
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AAPROP
New Member
Hi DoBuy,
Please email me your agent's contact info as well. My email id is waqarahmadi at gmail dot com. Thank you.
Please email me your agent's contact info as well. My email id is waqarahmadi at gmail dot com. Thank you.
Fran
New Member
Absolutely agree: PANIC is gown out of any proportions.
Funny, we are doing quite well with the commercial properties right now - corporate end users.
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iconoverseas
New Member
all makes interesting reading. there are certainly bargains out there.
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TommyC
New Member
Bargains it is, I'm very curious what will happen, since I'm in the same situation offering a bargain as well.
Just three months ago I bought 2 offplan apartments (my first investerment whatsoever here in Dubai since I came here, good timing!) for a 7% pre-launch discount. Unfortunately the real estate agent that set me up with the deal, and then also handling my resale, left me the phonenumber of the guy interested in buying the apartments and then disappeared. So I'm now stuck with 2 apartments and a buyer that has been given so many promises and stories by the agent that I'm not sure if I can straighten it out
Urgently getting rid of the apartments now anyway to first offer, if anyone is interested in 1 or 2 1BR 7% discount offplan apartments by a reputable developer at a just-cover-my-expenses premium (just over 1%). Send me a PM.
I do believe though that the market will stay floating, there will be no more increases in the same speed, but rather be at a standstill. Of course, heavily inflated premiums will go down in the short-term, but in the medium to long-term we'll probably see the usual 5% a year increase in property, somewhere along the inflation (which will no longer be based on property, rather property prices be influenced by inflation).
Just three months ago I bought 2 offplan apartments (my first investerment whatsoever here in Dubai since I came here, good timing!) for a 7% pre-launch discount. Unfortunately the real estate agent that set me up with the deal, and then also handling my resale, left me the phonenumber of the guy interested in buying the apartments and then disappeared. So I'm now stuck with 2 apartments and a buyer that has been given so many promises and stories by the agent that I'm not sure if I can straighten it out
Urgently getting rid of the apartments now anyway to first offer, if anyone is interested in 1 or 2 1BR 7% discount offplan apartments by a reputable developer at a just-cover-my-expenses premium (just over 1%). Send me a PM.I do believe though that the market will stay floating, there will be no more increases in the same speed, but rather be at a standstill. Of course, heavily inflated premiums will go down in the short-term, but in the medium to long-term we'll probably see the usual 5% a year increase in property, somewhere along the inflation (which will no longer be based on property, rather property prices be influenced by inflation).
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shahid
New Member
hi, all
there is correction in the market, which was due for a year, and correction is healthy for the market, there are always bulls and bears, so dont think its a crash, the genuine buy to live and buy to let demand is there and will remain, till average 6 to 8% of growth is there in the poputlation, and the number of units coming by 2010 are even less then what the demand is.
The genuine problem is with quick flippers,,, and thats where you hear the probelm, specially the way people have bought the plots @ 10% and 15% down payment, and thats where the real crash situation is, and it is not because there is no demand in the market, it is because it is not in the hands of real and genuine investors.
The investments in the plots is never for weeks and months, it should be atleast a year if not years.
Once all the weak holders ( with no deep pockets as compare to bought property ) sell their loads, the market will be fine,, which in my view will not take later than jan 2nd to 3rd week.
regards,
Shahid Pirani
there is correction in the market, which was due for a year, and correction is healthy for the market, there are always bulls and bears, so dont think its a crash, the genuine buy to live and buy to let demand is there and will remain, till average 6 to 8% of growth is there in the poputlation, and the number of units coming by 2010 are even less then what the demand is.
The genuine problem is with quick flippers,,, and thats where you hear the probelm, specially the way people have bought the plots @ 10% and 15% down payment, and thats where the real crash situation is, and it is not because there is no demand in the market, it is because it is not in the hands of real and genuine investors.
The investments in the plots is never for weeks and months, it should be atleast a year if not years.
Once all the weak holders ( with no deep pockets as compare to bought property ) sell their loads, the market will be fine,, which in my view will not take later than jan 2nd to 3rd week.
regards,
Shahid Pirani
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TommyC
New Member
I guess that's exactly where I come in, unfortunately. At least I've opened up the possibilty for a "real" investor to get an offplan property at an even better price, since I doubt the developer I bought from will open up the possibilty to buy for that discount again. As someone mentioned, there will be a few bargains on the market for the next couple of months, keep your eyes open.
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Wannaberich
New Member
EMIRATES 24/7:
Land deals to hit Dh300bn
Land transactions in Dubai are expected to touch Dh300 billion by end of this year, says Sultan Butti bin Mijrin, Director-General of the emirate's Land Department, adding that this indicates the property sector in Dubai is not experiencing any negative impact from the international financial crisis.
He also believes there will be no ill-effects in the near future.
Bin Mijrin told Emirates Business that the property sector was still healthy and generated business opportunities for the region and the world.
"The department has registered Dh228bn worth of transactions since the beginning of 2008 until October 12, a record growth of 115 per cent compared with the same period in 2007," he said.
"And we are just at the start of the heavy season for transactions, which begins in October and runs until the end of the year."
He expects a record transaction total of Dh300bn by the end of 2008 compared with 2007's figure of Dh175bn.
"This is a correct and realistic reflection of the whole real estate market in Dubai. The market has suffered harsh attacks lately as some have predicted a correction as a result of declining demand locally in response to the global crisis. "This has simply not happened and the market gained a lot as demand increased. This shows that talk of a decline in prices in the summer were just rumours. Some Dubai districts saw a rise in Ramadan, which is normally a slow month for transactions," said Bin Mijrin.
He said Dubai always got the best out of every situation, even unfortunate ones, thanks to its economic structure. "The profits Dubai has gained for investors as a global business centre are the reason investors rush to the emirate seeking a safe shelter for their money."
The Land Department transactions of Dh228bn between January 1 and October 12 had Dh76bn in direct sales, compared with Dh47bn in 2007. Mortgage deals amounted to Dh110bn compared with Dh58bn last year. Delayed sales – including off-plan and installment transactions – amounted to Dh32bn.
Land deals to hit Dh300bn
Land transactions in Dubai are expected to touch Dh300 billion by end of this year, says Sultan Butti bin Mijrin, Director-General of the emirate's Land Department, adding that this indicates the property sector in Dubai is not experiencing any negative impact from the international financial crisis.
He also believes there will be no ill-effects in the near future.
Bin Mijrin told Emirates Business that the property sector was still healthy and generated business opportunities for the region and the world.
"The department has registered Dh228bn worth of transactions since the beginning of 2008 until October 12, a record growth of 115 per cent compared with the same period in 2007," he said.
"And we are just at the start of the heavy season for transactions, which begins in October and runs until the end of the year."
He expects a record transaction total of Dh300bn by the end of 2008 compared with 2007's figure of Dh175bn.
"This is a correct and realistic reflection of the whole real estate market in Dubai. The market has suffered harsh attacks lately as some have predicted a correction as a result of declining demand locally in response to the global crisis. "This has simply not happened and the market gained a lot as demand increased. This shows that talk of a decline in prices in the summer were just rumours. Some Dubai districts saw a rise in Ramadan, which is normally a slow month for transactions," said Bin Mijrin.
He said Dubai always got the best out of every situation, even unfortunate ones, thanks to its economic structure. "The profits Dubai has gained for investors as a global business centre are the reason investors rush to the emirate seeking a safe shelter for their money."
The Land Department transactions of Dh228bn between January 1 and October 12 had Dh76bn in direct sales, compared with Dh47bn in 2007. Mortgage deals amounted to Dh110bn compared with Dh58bn last year. Delayed sales – including off-plan and installment transactions – amounted to Dh32bn.
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TommyC
New Member
Edit: Saw you updated... It's amazing how they keep telling stories to keep it going, maybe it works and all will be well. On the contrary though, just got info (20 mins ago) from a colleague that has a friend working as real estate agent which just got fired because there are no sales at the moment. (Not the news I wanted to hear....)
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Investoman_uae
New Member
I work in one of the biggest real estate consultancy companies in Dubai. Things have gone quiet recently,... we are still doin business but not at the same pace as before.
The next 2 months should decide where the market will go and how it will shape insha'Allah.
Meanwhile, i have an apartment in Abu Dhabi which i will try and get finance for ... i have one installement comin up in a week.
Anyways, I am glad I bought in Abu Dhabi... I dont know why I feel its less riskier than Dubai... and a more luxury market where demand is alot bigger than the demand in Dubai.
Inv.
The next 2 months should decide where the market will go and how it will shape insha'Allah.
Meanwhile, i have an apartment in Abu Dhabi which i will try and get finance for ... i have one installement comin up in a week.
Anyways, I am glad I bought in Abu Dhabi... I dont know why I feel its less riskier than Dubai... and a more luxury market where demand is alot bigger than the demand in Dubai.
Inv.
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Wannaberich
New Member
EMIRATES 24/7:
Prices in the UAE property market surged in September with Dubai registering 17 per cent increase month-on-month and 11 per cent in Abu Dhabi, compared to an average of two to three per cent during the summer months, according to a new report.
"Price growth is picking up again after a brief moderation during the summer. However, while prices remain on an upward spiral, rental rates in Dubai seem to be stabilising, thereby compressing rental yields. This shows we have reached a level where affordability is getting breached," HSBC said in a report released recently on the UAE real estate market.
According to the bank, the market will remain tight at least until 2010.
"As we mentioned in our previous reports, the government can manage supply through its direct and indirect ownership in Dubai's largest developers. We estimate roughly 90 per cent of upcoming supply in Dubai is controlled by Nakheel, Dubai Holding and Emaar."
The thing to look at now is demand, which is being affected by several factors. Price appreciation is breaching affordability, which will be further amplified by upward pressure on mortgage rates and declining loan to values. "The situation has not been helped by the recent stock market declines, which have highlighted the fact that the region is not immune to global trends, whether in equity, debt or property."
HSBC believes the off-plan market will be the hardest hit and the first to be affected, given the high level of speculation. "On the other hand, we believe that ready units will be supported by demand, and any weakness will therefore be less pronounced.
"The fall in prices should be limited to the level where rental yields are at the mortgage rate or at a slight discount, which will vary from segment to segment."
While prices in the UAE are becoming less affordable, Dubai unlike Abu Dhabi, offers a wide range of units catering to most income levels. "Price softening in the real estate market is not only healthy, but necessary at this point for the sustainability of the economic story," the bank said in the report.
Prices in the UAE property market surged in September with Dubai registering 17 per cent increase month-on-month and 11 per cent in Abu Dhabi, compared to an average of two to three per cent during the summer months, according to a new report.
"Price growth is picking up again after a brief moderation during the summer. However, while prices remain on an upward spiral, rental rates in Dubai seem to be stabilising, thereby compressing rental yields. This shows we have reached a level where affordability is getting breached," HSBC said in a report released recently on the UAE real estate market.
According to the bank, the market will remain tight at least until 2010.
"As we mentioned in our previous reports, the government can manage supply through its direct and indirect ownership in Dubai's largest developers. We estimate roughly 90 per cent of upcoming supply in Dubai is controlled by Nakheel, Dubai Holding and Emaar."
The thing to look at now is demand, which is being affected by several factors. Price appreciation is breaching affordability, which will be further amplified by upward pressure on mortgage rates and declining loan to values. "The situation has not been helped by the recent stock market declines, which have highlighted the fact that the region is not immune to global trends, whether in equity, debt or property."
HSBC believes the off-plan market will be the hardest hit and the first to be affected, given the high level of speculation. "On the other hand, we believe that ready units will be supported by demand, and any weakness will therefore be less pronounced.
"The fall in prices should be limited to the level where rental yields are at the mortgage rate or at a slight discount, which will vary from segment to segment."
While prices in the UAE are becoming less affordable, Dubai unlike Abu Dhabi, offers a wide range of units catering to most income levels. "Price softening in the real estate market is not only healthy, but necessary at this point for the sustainability of the economic story," the bank said in the report.
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Investoman_uae
New Member
Am I reading this right? Maybe prices for completed properties have seen some growth but certainly not the offplan market.
Inv.
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Wannaberich
New Member
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