2008 the year when the supply will surpass the demand

[fws]

Reading Roshan's post, I'm a 'regretful of today'. Well done on buying into Business Bay at that rate, Roshan. I was in Dubai in May 2005 and saw the 'history is rising' posters everywhere - I should have taken more notice!!!!

[Rammah]

Originally Posted by fws

Reading Roshan's post, I'm a 'regretful of today'. Well done on buying into Business Bay at that rate, Roshan. I was in Dubai in May 2005 and saw the 'history is rising' posters everywhere - I should have taken more notice!!!!

Did you have money to invest back then [May 05?, dec 06?]
Where did you invest it? [plz don't tell me it's sitting in the bank!]

Rammah

[fws]

No it's not in the bank! I bought in Infinity Tower in February 2006. The site has been flooded for almost a year, everything is on hold and prices are still virtually the same as then. It will be a good long term investment (which was the original plan anyway) but it's hard when there is no progress whatsoever! I was expecting to be holidaying there from next year and now doubt if it will be ready much before 2011-2012.

Just realised that you work for Damac, so you know all that Please can you pm me with any details you have about Abu Dhabi? Many thanks

[Rammah]

Originally Posted by fws

No it's not in the bank! I bought in Infinity Tower in February 2006. The site has been flooded for almost a year, everything is on hold and prices are still virtually the same as then. It will be a good long term investment (which was the original plan anyway) but it's hard when there is no progress whatsoever! I was expecting to be holidaying there from next year and now doubt if it will be ready much before 2011-2012.

Terrible luck! 2 years is a very long time in a city like Dubai even though the plan was long term... I look at my client's investment portfolios every 6 month, and I expect growth. 2 years is 4 reviews in my dictionary... Unacceptable!
Well, I hope it gets on track faster, and that your next investment hits lucky!
In specific, Business Bay and Freezones are the right places to invest in today.

Rammah

[Roshan]

Originally Posted by Rammah

same applies to singapore, tokyo, and many other cities in the world...
u r right... only 1 way... UP!
The doubters of today will become the regretful of tomorrow. Mark my words.

Rammah

I hope you guys are right. I have made 3 investments and if what you say is right than I should be secure for the rest of my life.

Roshan

[DAYFox]

Originally Posted by Roshan

End of the day, it would all depend on the entry level in the market. Earlier the entry level better are the chances.

I entered Business bay at 1295 dhs psf in Dec 2006 and I am not bothered even if there is a correction. Today Business bay entery levels are 2200 dhs psf. For people entering at 2200 dhs, there might or might not be a problem, but the exposure to risks are more.

I really don't know where Dubai is heading with all the prices going up. Is it a hyped up market or is it real....only time will tell.

Regards

Roshan

I entered Business Bay at 1000AED Residential and 1100AED Commercial (not top of the line tower, but still right at the entrance of BusinessBay, Metro Station in front and Mixed Use Development: Ontario Tower) in May 2006. But I have to say that i was one of the first investors in that area... Somehow I was totally convinced from this development and as from the post i can read in the forum it seems to be that my intuition was right.

What is the current market price in BusinessBay for that kind of tower? I often read 2200AED.. where to you get this number from? And is it valid for all towers in BusinessBay or do they have to be rated diferently?

[Roshan]

Originally Posted by DAYFox

I entered Business Bay at 1000AED Residential and 1100AED Commercial (not top of the line tower, but still right at the entrance of BusinessBay, Metro Station in front and Mixed Use Development: Ontario Tower) in May 2006. But I have to say that i was one of the first investors in that area... Somehow I was totally convinced from this development and as from the post i can read in the forum it seems to be that my intuition was right.

What is the current market price in BusinessBay for that kind of tower? I often read 2200AED.. where to you get this number from? And is it valid for all towers in BusinessBay or do they have to be rated diferently?

Business bay is the future as they all say. The developers are charging Dhs 2200 psf at the moment and now I am told that Deeyar will be launching at Dhs 2600 psf. Many on the forum might not agree with me but I feel that the developers have taken advantage of the situation and blown their prices out of propotion.

People still look at the convenience factor when choosing a tower. Since you are at the entrance and near the Metro, you should do very well. Your residential should do better than your commercial. People would want to live and work in the same tower and you could charge a premium for that considering the amount he/she can save on transport and time. I presume the development has seperate entrances for office & residence.

Business bay infrastructure will take a long time. Imagine the building is up and you don't have roads leading to the building. What I am trying to say is that your development will not need the support of the business bay infrastructure and could be sought after when completed.

Besides you entered at 1000 dhs psf. Even if the market crashes ( very unlikely ) you will have the power to hold onto your investment. Even in the worst case scenario considering a crash, don't you think you could get 150 dhs psf for your investment. What I am implying is that you will be on positive cash flow even in the worst case scenario. Nobody can predict when the market will crash. Although frenzied buying is a tell tale sign that a crash or a correction is at hand

Real estate is all about people entering early and I think you have done that. Sit on your investments, it's like the hen which laid golden eggs.

Towers will be graded no doubt. You should not worry about what the price will be for that kind of tower. You have entered early and have already have got a good appreciation which of course will continue and prospects for good rental income. Your kind of tower should do well.

Good luck.

[Roshan]

Originally Posted by Rammah

same applies to singapore, tokyo, and many other cities in the world...
u r right... only 1 way... UP!
The doubters of today will become the regretful of tomorrow. Mark my words.

Rammah

For arguements sake, don't you think it's a bit early to compare Dubai to Singapore, Tokyo, New York, Moscow, Hong Kong, London. These cities are matured and experienced many real estate cycles to arrive to the place that they are now. How many cycles has Dubai experienced, it's still at the beginning of the cycle.

Real esate can't keep going up all the time, signs of an emerging market. Dubai needs to mature as a market before it can be compared to other cities.

On one side Dubai is adopting the principle of "build and they will come". It would all depend on how they manage to get the people in. Besides in years to come supply might meet demand forcing a correction.

On the other hand Dubai has never gone wrong. Look at Emirates doing well when other airlines are struggling. When the free zone was built by H.H Sh. Rashid, the world laughed at him and now countries are following what he thought of decades ago.

Again..this is my opinion and I might be wrong.

Roshan

[DoBuy]

What will put Dubai on a par with other major cities and make property value the same?
Will just building amazing developments like the Palms,Tall Towers,Dubailand be enough or must it become a big financial centre as well as a tourism centre.Is increasing its GDP what will make it a major city?So what must happen?

[Roshan]

Originally Posted by DoBuy

What will put Dubai on a par with other major cities and make property value the same?
Will just building amazing developments like the Palms,Tall Towers,Dubailand be enough or must it become a big financial centre as well as a tourism centre.Is increasing its GDP what will make it a major city?So what must happen?

Dubai has to cash on Sun & Sand, what I mean is tourism and I think it's doing that.

Roshan