[mpat]

Originally Posted by Investoman_uae

Guys, you probably heard of this topic a zillion times, but one more wont harm.

I am beginning to feel seriously concerned about the UAE property market and wanted to know if others share the same feeling.

Firstly, I am an investment consultant and I have experience from UK and currently working in a british real estate company in UAE. What I understand over my time here, is that the UAE market is very short term. And this is the concern.

People are buying like crazy, and then selling in the same week at higher premiums, good for them, but is there much analysis put in this? What about the end user? Who is going to live in these properties.

Some projects havent even started and the units are bought and sold with papers, nothing more. This is extremely fake and thats worrying.

Alot of developers appeared out of nowhere, I dare you guys to name the developers you bought from and give me some history about them. Who are these developers, whats their reputation, how do we know they are goin to deliver a decent product.

Many of you here are complaining about the procedures, these are negative signs of unprofessionalism from the side of the developers and ignorance from the side of investors.

Also, this morning I hear that Tameer has put its project Al Salam City where alot of investors threw their money.... so this project is semi cancelled.... so they saying people will get their money back (without premium)... and the project as a whole was a failure because of power shortage and no water etc.

This is the biggest problem and we've only seen the tip of ice berg. Is there enough power to make these projects feasable? Me thinks not.

I am sure the investors make money short term, but are we goin to see more of these failed projects?

What will happen in 2009, 2010, 2011... when these millions of projects will be completed, (if completed).... who is goin to fill these apartments and villas? You and I? Me thinks not. Are you prepared to buy a 1 bed which will then be about 2.7 million lets say.... how the hell will you rent it out? Can you let it for 200,000? even 180,000 per annum.... for a one bed? I'll go live in friggin palace in Monaco for that rent.

So my concern is, ... who is goin to fill these thousands and thousands of units.

People buyin for 2500/sqft NOW, before the construction even started..... can you guarantee you will be able to sell it in the near future? or even buyer2.... will he be able to resell and make profit? ... and will the end user pay somethin with 100% premium to live in it?

And to finally seal it off.... developers (even the big names) have no clear procedure on how to buy, sell, register (in connection with RERA, Lands department etc).

This is madness. Are you all thinking to buy and sell while you still can and not bothered about what happens in 3 years time? Cos alot of buildings will lie empty I tell you that.

Inv.

I agree with most of your comments,and its becoming more and more alarming for those ppl investing in Ajman , UAQ , RAK, etc . Dubai will somehow manage crisis of power and water , but from where they will bring ppl to fill in ? and that s the time rents will start crashing.Ultimately that is the major cause of inflation,so may be govt is thinking in that direction also.
supply more and demand less to bring down rents.