Recovering from Cityscape: Its not over yet

[NewLook]

For all those with droopy shoulders and sad faces in regard to the real estate market -- keep your chin up. Yes there has been some panic with investors who played a risky game of buying and hoping for a quick turn around which of course is unlikely for most. I am refering to people buying floors and large numbers of unit who have now hit the market in a desperate bid to sell at no premium because they dont have the next payments, but it appears 2 schools of thought prevail, both depending greatly on your finance and nerve. Either take the hit and default on payment for which there is a possibility you will get back 70% of what you have paid with law 13, but only when the unit has been sold in the market. This could take some time so you would have to wait. Or, continue with your payments and change your expectations regarding return and duration of that return then hey, the market WILL stabilize in time and esp. if the unit you have is in a great location as these are the areas that will recover first. The market here has been heading for a correction for some time, it is a shame that this correction, coupled with the slow summer sales, Ramadan and the looming credit crisis all happened at once. Due to this there is an unfounded panic which I believe will settle in the coming weeks. The longer term investor will win out in this situation, longer term meaning one year or completion of the project. The resale market has two types of investor, those who want to flip in the market (right now these are few to be found) and the end user who will either live there themselves or rent out as an investment. This is your target market should you choose to continue, and those units that are ideally situated for this type of investor and if put on the market at a fair price should sell. I still have my Burj flat w/Emaar, and sure, I wished it sold it at Cityscape, but I'm trying to see it from a broader perspective because the location is very good, and the developer is a solid bet, I'll just have to see what happens next.

 

[kaku67]

dou think burj properties will go as high as 50000 dhs per sq feet . like a one bedroom for 50 million dhs . i dont think so .

 

[NewLook]

dou think burj properties will go as high as 50000 dhs per sq feet . like a one bedroom for 50 million dhs . i dont think so .

WHO AM I to venture a guess (except that you asked).

My first response is ... who would have thought units would go to $4,400sqft?
Or $12,000 sqft? A few months ago I remember front page headlines in a commerce newspaper announcing $12,000 sqft sale at the Burj. What does that mean? It means that anything is possible.

I think that Dubai will succeed in its vision of becoming a prime destination tourist attraction, but more importantly, I think, is its strategic position as an international business hub and financial center. These complementary elements are key circumstances that will accelerate Dubai's maturity into its fledgling footprint.

Dubai is in an excellent position to achieve international business and financial icon status. And if I were in Dubai as a business exec, I'd prefer a clean, modern, luxury downtown suite, close in proximity to business central and respective amenities. I like the waterway concept surrounding the Burj. I would suspect that corporate suits want to make their stay as prosperous and comfy as possible in terms of location and convenience. The Burj area can deliver on this.

Also, after having lived at the Palm for a month earlier this year, my personal experience there altered my initial enthusiasm for it. Sure it was fun to entertain friends on the beach, get away from the citybeat, and to walk the 1/2 mile stretch in the morning. However, in addition to the traffic time wasted going back and forth to downtown, I became disenchanted with the marginal water quality of the shoreline, with seeing large settlement cracks in the units, and with being unable to reconcile how the island layout jives with the natural tide movement (fostering an accumulation of algae and bacterial growth by adversely affecting the natural cyclic movement requirements of marine life). The bottom line for investors is what impact will these issues will have on waterfront values in 5 years? If I were looking for a place to spend holiday on beachfront property, I'd go elsewhere to find a place to wiggle my toes in the sand. And who has time to waste in traffic? Not me. Especially since practical solutions to the transportation issues may be many many years forthcoming.

Having said that and looking now at the real estate market, basic principles of supply and demand, common sense from a practical business standpoint, and LOCATION will drive downtown prices upwards and will attract and accomodate the most exclusive international corporate/financial clientele, and I think its quite possible that prices will escalate in the downtown Burj area when the building phase is complete, the waterpark is in place, and Dubai solidifies its position as a financial/business mecca.

 

[Wannaberich]

Regards the natural tide movement.Nakheel went to great lengths to make sure the water flowed correctly,to the extent much marine life has formed around the palm which didnt exist before.
Regards transportation.First phase of Dubai metro which is a fantastic project,comes online
next Sept.When completed maybe in 6/7 years time,it plus around 500 buses
will probably wipe out Dubais transport problems.

 

[NewLook]

Regards the natural tide movement.Nakheel went to great lengths to make sure the water flowed correctly,to the extent much marine life has formed around the palm which didnt exist before.
Regards transportation.First phase of Dubai metro which is a fantastic project,comes online
next Sept.When completed maybe in 6/7 years time,it plus around 500 buses
will probably wipe out Dubais transport problems.

Hi DoBuy,
Thanks for the feedback. Surely Nakheel conducted its studies diligently with respect to ensuring appropriate waterflow. However, I found the water to be extremely oversalinated and did not know of any public regulatory agency keeping track of the water quality, which I would want if my family were swimming in it. While I was there, I heard that further down the coast that the water quality was not safe for swimming (near Abu Dhabi?). And, 500 buses will probably help the traffic situation. Every little bit helps. As for me, I can't quite see myself in a bus with my business exec colleagues.

 

[Wannaberich]

Maybe you and your business exec colleagues wouldnt mind travelling on the metro gold class.Well away from all the other peasants.

 

[kaku67]

WHO AM I to venture a guess (except that you asked).

My first response is ... who would have thought units would go to $4,400sqft?
Or $12,000 sqft? A few months ago I remember front page headlines in a commerce newspaper announcing $12,000 sqft sale at the Burj. What does that mean? It means that anything is possible.

I think that Dubai will succeed in its vision of becoming a prime destination tourist attraction, but more importantly, I think, is its strategic position as an international business hub and financial center. These complementary elements are key circumstances that will accelerate Dubai's maturity into its fledgling footprint.

Dubai is in an excellent position to achieve international business and financial icon status. And if I were in Dubai as a business exec, I'd prefer a clean, modern, luxury downtown suite, close in proximity to business central and respective amenities. I like the waterway concept surrounding the Burj. I would suspect that corporate suits want to make their stay as prosperous and comfy as possible in terms of location and convenience. The Burj area can deliver on this.

Also, after having lived at the Palm for a month earlier this year, my personal experience there altered my initial enthusiasm for it. Sure it was fun to entertain friends on the beach, get away from the citybeat, and to walk the 1/2 mile stretch in the morning. However, in addition to the traffic time wasted going back and forth to downtown, I became disenchanted with the marginal water quality of the shoreline, with seeing large settlement cracks in the units, and with being unable to reconcile how the island layout jives with the natural tide movement (fostering an accumulation of algae and bacterial growth by adversely affecting the natural cyclic movement requirements of marine life). The bottom line for investors is what impact will these issues will have on waterfront values in 5 years? If I were looking for a place to spend holiday on beachfront property, I'd go elsewhere to find a place to wiggle my toes in the sand. And who has time to waste in traffic? Not me. Especially since practical solutions to the transportation issues may be many many years forthcoming.

Having said that and looking now at the real estate market, basic principles of supply and demand, common sense from a practical business standpoint, and LOCATION will drive downtown prices upwards and will attract and accomodate the most exclusive international corporate/financial clientele, and I think its quite possible that prices will escalate in the downtown Burj area when the building phase is complete, the waterpark is in place, and Dubai solidifies its position as a financial/business mecca.

i think the only people who would be able to buy in burj now would be exutives from lehmen brothers or AIG with there huge golden parashautes (my spelling are not great) . or a few from russian mafia .

 

[NewLook]

Peasants Polygamists or the Pope

Maybe you and your business exec colleagues wouldnt mind travelling on the metro gold class.Well away from all the other peasants.

Irrespective of whether there's peasants peacocks polygamists the Pope or Penelope Cruz on the bus it wouldn't faze me. My point was that the downtown living area minimizes exposure to traffic, taxi, bus services or whatever mode of transport is used.

 

[Roshan]

Irrespective of whether there's peasants peacocks polygamists the Pope or Penelope Cruz on the bus it wouldn't faze me. My point was that the downtown living area minimizes exposure to traffic, taxi, bus services or whatever mode of transport is used.

Points well put. Yes there is still a lot of juice left in and around Burj Dubai.

Regards

Roshan

 

[Wannaberich]

Irrespective of whether there's peasants peacocks polygamists the Pope or Penelope Cruz on the bus it wouldn't faze me. My point was that the downtown living area minimizes exposure to traffic, taxi, bus services or whatever mode of transport is used.

And my point was Dubai will not always have such a transportation problem.
Maybe you could point out the positive aspects of the place and not just the negative.

 

[NewLook]

Real Estate Expo in Moscow

i think the only people who would be able to buy in burj now would be exutives from lehmen brothers or AIG with there huge golden parashautes (my spelling are not great) . or a few from russian mafia .

Kaku -- Since you mentioned Russians, I just thought I'd add that Moscow is having their international real estate expo November 10th-12th, and there will be several real estate companies from Dubai attending that show.