Sell Dubai - buy Abu Dhabi

[georgihh]

The Businesses are moving slowly but surely to AB. Dubai is trying to recover, but I don’t know how and when. The supply is enormous, demand is vanishing. AD is not that too much built and they are sitting on trillions of $. Logic shows only one way from Dubai to AD.
AD is the place to be in the next 10 years

 

[Wannaberich]

I disagree with you.AD has nothing and will build nothing because they dont have to.They have trillions like you say so there is no reason for them to want businesses and tourists.
The only reason they have started some developments is to copy Dubai but their projects are few in number.

Dubai on the other hand has little oil money so has to create income from somewhere.
They need to bring business,tourists and residents and will do anything they can to achieve this.
As an investor you need to buy a property in a place where you think people will want to live.
Ask 10 people would they prefer AD or Dubai and I bet 7/8 would choose Dubai easily.

 

[Sixgun]

Hi Dobuy,

I have enjoyed your posts recently, because you seem to have taken a much more balanced view.

One point though, from your previous post

Dubai on the other hand has little oil money so has to create income from somewhere.
They need to bring business,tourists and residents and will do anything they can to achieve this.

I believe that thousands of expat investors, who are stuck with large amounts of their savings floating around there, with nothing to show, would absolutely disagree that Dubai authorities are "doing anything they can" to achieve helping them.
It is precisely that they do not do enough for them, that the confidence in property has just about evaporated.

 

[Wannaberich]

Hi Dobuy,

I have enjoyed your posts recently, because you seem to have taken a much more balanced view.

One point though, from your previous post



I believe that thousands of expat investors, who are stuck with large amounts of their savings floating around there, with nothing to show, would absolutely disagree that Dubai authorities are "doing anything they can" to achieve helping them.
It is precisely that they do not do enough for them, that the confidence in property has just about evaporated.

Thanks for the compliment Sixgun although as I keep saying my posts have always been balanced.
Also I said Dubai is doing everything they can to bring in business/tourists/residents.I didnt say they are doing everything they can to help investors.On that point they are doing and have done f...all.They basically invited/conned foreigners to put their money in Dubai without mentioning
the risks this would invlove.Risks because without any laws in place to protect them they will be screwed and are.The Dubai goverment being a developer itself is also guilty in conning investors and also the banks etc that lent it billions.
They are simply incompetent and liars.
They allowed so many people to get ripped off because they themselves were making so much money selling land etc.
They could have controlled how much building was going on to control oversupply but of course they didnt.
Right now they should be helping these investors but that wont happen.
They should make these developers hand back the money owed to investors but of course they won't.
They could issue permenant visas for example but that will never happen.
They could make it easier to open a business in Dubai but they havent.
They have basically done nothing since things turned for the worse.
Maybe this is because they are in so much mess themselves.

Thankfully though they wont escape totally as it will be very difficult for them to attract any kind of investors in the future.
Property sell/buy prices are still falling.Maint charges are ridiculous.If you own a 1 bed at Dis Gardens for example
almost 50% of your rent money will have to go on maint charges.If you live abroad you will then have to pay for
a property management company and then pay tax in your own country.So wheres the incentive?

However like I said Dubai still has a chance to become a great city.With falling prices more and more people
can afford to live and work in Dubai and open up businesses there.It will take a minimum of 3/5 years
for the dust to settle and for us to know how Dubai will shape up.

Just my opinion.

 

[oasis2buyer]

Jones Lang LaSalle report outlines UAE real estate 2010 trends

* United Arab Emirates: Monday, February 15 - 2010 at 17:10
* PRESS RELEASE

An excerpt from the article showing the hot list and Number 3 is of great interest.

"3. Rebuilding Trust and Confidence
Lack of transparency and trust are major issues facing the UAE real estate industry. They have negatively impacted the UAE market and have eroded investor confidence. Effective regulation and greater transparency are some of the major industry challenges in 2010 and the years ahead;"

If only people could sell and get out or get their monies returned by developers that would be a blessing but they are stuck in never never land and it could take years or they could also lose everything!

Ajman is another disaster!!

 

[Sixgun]

I believe it's a very small minority who would move their investment $$s from Dubai to AD, reason being, it's still the UAE.
(I mean small investors, businesses may have better reason)

I know very liitle about AD, compared to Dubai, but I know I can't even be bothered to research it, because of the lessons I've learned on how ex-pats are treated by Dubai govt. for all I know, AD may be even more arrogant and even less helpful (if that;s possible) because as Dobuy says, they dont even need us.

So what I meant in my opening line is that I find it hard to imagine anyone being burned in Dubai, then turning to any other UAE country to invest,
I personally wont be risking any more $$'s into their economy, including any more tourist type visits, (unless perhaps my flight to Aussi stops over there for an hour, then I may find it in my heart to risk the price of an airport orange juice or something.)

 

[georgihh]

People are coming and they want to come as we discussed so many times.
Dubai’s government must settle down, stop doing nonsense and stick to a specific law.
They can’t keep on changing the rules as go well with them and expect people to believe in them.
On top that they can’t start projects without sufficient funds and expect miracles.
I remember two years ago they were planning to start the construction of the so called ‘universe’ a project bigger than Dubai world and they were and still they are in huge debt.
At the same time market was driven by the speculators and the economy was not sustainable.
The Financial crisis helped the market to collapse, but is not the main reason.



AD is a different story – any project they started will be completed and more important they will pay the contractors.
They build less and the demand will overcome the supply - the prices will go up.

 

[oasis2buyer]

wow what a bargain - free stopovers in dubai available from (uk) return - won't even have to pay for drinks - I'm going on holidays!