Dubai Bubble Bursts

[Vicks]

Yes, at last, someone with a sensible intuition rather than talking like they saw hindsight before anyone else. 'didnt anyone see this coming sooner? Someone got a glass ball that can tell the furture eh?

This was America doing. They buggered up and trying to take the whole world down with them and systematically caused a period of lending to stop. This will come back but with a decent LTV.

The whole world was in a bubble but no could speculate when that bubble would burst. When purchasing, a majority of investors (me including) looked at it at a long term view and also with a view of not putting all your eggs in one basket.

Dubai will come, as will the UK , as will the whole world. Its a cyclical effect. Next time round will not see much lending but there will be lending on appropriate LTV.

Bargains out there? Not too sure about that. There have been speculative emails stating bargains galore but it all come down to nothing. Is there really bargains out there?

Shortage of housing? well, if you look at it this way, that Dubai to build so many dwellings by a certain date, this target will not be reached if Developers stop developing. The same thing is happening in the UK. Uk has a target. But developers cannot build due to the mortgage lenders not being able to lend. This brings down prices, but hey, 1 year down the line, no developments on housing means there still is a shortage, banks starts to lend then what will happen? Only way i can see is the price starting to rise.

The same will happen to Dubai. They will be helped by Abu Dhabi, if they give a share of Emirates away to them.

Also places won't be bought anywhere. People will be more fussy on where they want to buy. Prestige locations, The Palm, Business Bay and eventually near DubaiLand when Tourism for this area will rocket.

This is just my point of view. I believe these fundamentals keep me going in investing in selected countries.

Originally Posted by DoBuy

Hysterical.The whole world was in a bubble that just collapsed and no sucker saw it coming.
Lets get one thing clear,Dubai was going along very nicely till America screwing up hit the rest of the world.So please dont put it down to Dubai not getting it right.

As for a few delays,etc,staff lay-offs,And?!What do you expect with this climate?!
You guys talk like its the end of the world for Dubai and its completely collapsed.

Dubai will ride the storm like every other country out there and then take off again when the economies pick up.Theres no reason whatsoever to think otherwise.

In the meantime,to all the doom and gloom merchants,see if you can pick up a bargain and maybe that jealousy will subside.

[DoBuy]

Originally Posted by Vicks

Yes, at last, someone with a sensible intuition rather than talking like they saw hindsight before anyone else. 'didnt anyone see this coming sooner? Someone got a glass ball that can tell the furture eh?

This was America doing. They buggered up and trying to take the whole world down with them and systematically caused a period of lending to stop. This will come back but with a decent LTV.

The whole world was in a bubble but no could speculate when that bubble would burst. When purchasing, a majority of investors (me including) looked at it at a long term view and also with a view of not putting all your eggs in one basket.

Dubai will come, as will the UK , as will the whole world. Its a cyclical effect. Next time round will not see much lending but there will be lending on appropriate LTV.

Bargains out there? Not too sure about that. There have been speculative emails stating bargains galore but it all come down to nothing. Is there really bargains out there?

Shortage of housing? well, if you look at it this way, that Dubai to build so many dwellings by a certain date, this target will not be reached if Developers stop developing. The same thing is happening in the UK. Uk has a target. But developers cannot build due to the mortgage lenders not being able to lend. This brings down prices, but hey, 1 year down the line, no developments on housing means there still is a shortage, banks starts to lend then what will happen? Only way i can see is the price starting to rise.

The same will happen to Dubai. They will be helped by Abu Dhabi, if they give a share of Emirates away to them.

Also places won't be bought anywhere. People will be more fussy on where they want to buy. Prestige locations, The Palm, Business Bay and eventually near DubaiLand when Tourism for this area will rocket.

This is just my point of view. I believe these fundamentals keep me going in investing in selected countries.

Agree with u.People should stop looking at Dubai as in what will happen in the next few months/2 years.Its about what will happen long term.

I keep reading lending will commence Feb/March and this is when the market will pick up.Hope so.

[revolutionary]

I've just been checking prices for JLT on the GNads website and the asking prices don't seem to have reduced although the true reality is the prices that actually sell. I would be very happy to receive the amounts being asked less 20% as I've made more than the 20% since the bubble burst due to the concurrent devaluation of the pound.

Does anyone have any real deal prices so we can have a sense of what is actually going on? I guess deals on immediately available places are more likely to have happened recently and would be a better guide for the prices real end-users are still prepared to pay rather than the speculators who have run for the hills to lick their wounds.

[georgihh]

Originally Posted by revolutionary

I've just been checking prices for JLT on the GNads website and the asking prices don't seem to have reduced although the true reality is the prices that actually sell. I would be very happy to receive the amounts being asked less 20% as I've made more than the 20% since the bubble burst due to the concurrent devaluation of the pound.

Does anyone have any real deal prices so we can have a sense of what is actually going on? I guess deals on immediately available places are more likely to have happened recently and would be a better guide for the prices real end-users are still prepared to pay rather than the speculators who have run for the hills to lick their wounds.

If the property is ready 1200 DHS per sqft is reasonable
If off plan – nobody buys

[Ayyan]

but who would want to buy in jlt anyway

the best deal in town right now is remmraan

[georgihh]

Originally Posted by Ayyan

but who would want to buy in jlt anyway

the best deal in town right now is remmraan

Nobody buys piece of paper anymore.
Only ready properties will have value next year
The off plan is going to be 20% less than the completed units and the percentage depends on the status of the building.
Remran is going to sink very soon.
The people have learned the lesson and if they don’t see the key ,
they don’t bother

[Ayyan]

Bloomberg.com: Exclusive

Read this i think we should all be very very worried

[manman]

My 1 bed is going to be ready next month. its in Tecom Two Towers Tower A. I paid 1325 AED per square foot. I am thinking of selling it in the market now. Can anyone give me an idea if cost pls 8% profit is the right price and will i be able to find a buyer?

I will really appreciate your thoughts

[TommyC]

Originally Posted by manman

My 1 bed is going to be ready next month. its in Tecom Two Towers Tower A. I paid 1325 AED per square foot. I am thinking of selling it in the market now. Can anyone give me an idea if cost pls 8% profit is the right price and will i be able to find a buyer?

I will really appreciate your thoughts

And post this in the right thread...as you saw, the topic was "Dubai Bubble Bursts" not "Estimated price of manman's property".

[TommyC]

Here we go, next announcement: Global crisis forces Dubailand review - The National Newspaper