Recent Price Surge - Dubai properties

[paul1970]

a) Does the recent price rise in the properties can be justified by the commodities prise rise( cement/steel), shortage of skilled labourers, Dollar peg and reduction of interest rates by the banks and the much talked inflation or is it the early stage of a bubble.

Please comment.


Paul

[DAYFox]

Originally Posted by paul1970

a) Does the recent price rise in the properties can be justified by the commodities prise rise( cement/steel), shortage of skilled labourers, Dollar peg and reduction of interest rates by the banks and the much talked inflation or is it the early stage of a bubble.

Please comment.


Paul

I think so, yes! Everyday we see the Dollar at a new record low and this combined with shortages in all fields, inflation etc. justifies the continuous increase in prices! I dont think that you can lead back this to a bubble situation... But this is only my opinion and at the end of the day no one knows for sure -thats for sure!

[Fanny]

Could still be the after effect of George W Bush's visit to the Emirates, that tended to give prices an instant boost.

[Roshan]

Originally Posted by DAYFox

I think so, yes! Everyday we see the Dollar at a new record low and this combined with shortages in all fields, inflation etc. justifies the continuous increase in prices! I dont think that you can lead back this to a bubble situation... But this is only my opinion and at the end of the day no one knows for sure -thats for sure!

A correction is at hand. The bubble won't burst. Dubai has spent billions to promote it as a destination and they will not allow it to crumble.

Oh yes, like any market, expect a correction.

Regards

Roshan

[mpat]

I spoke to a developer last week and discussed this point,they was saying that they themseles does not know why is it becoming so expensive here? he mentioned an example of another developer selling at 1800 PSF and that is the reason we increased prices for our developement.But he agreed that prices will correct a little bit.So , what I feel is it is based merely on speculation and nothing else.Some part is played by price hike and dollar etc etc etc but not this much.

[Roshan]

Originally Posted by mpat

I spoke to a developer last week and discussed this point,they was saying that they themseles does not know why is it becoming so expensive here? he mentioned an example of another developer selling at 1800 PSF and that is the reason we increased prices for our developement.But he agreed that prices will correct a little bit.So , what I feel is it is based merely on speculation and nothing else.Some part is played by price hike and dollar etc etc etc but not this much.

Unlike other markets, Dubai does not have an index, a sort of a meter to indicate previous prices anf trends.

The prices have now become more of a competition between competitors. Markets are over heated in my opinion and there will be a correction soon.

Deals are available in the market, but all in the secondary which has huge premium implications.

One needs to be careful when buying. Keep your money ready, very soon we will be having distress sales around the corner.

My next investment will be a commercial from the secondary market and of course a distress sale.

Regards

Roshan

[jags]

there r too many investors in Dubai rather than end users. they r investing in numbers.they r buying papers not the properties. who is going to live in enormous number of properties.look at Dubailand.the size of it is frightening.how long will it take to complete?my personal belief is no state can survive only on tourism n real estate only.we r all buying expensive properties in numbers 2,4,6.....10.most people coming to Dubai r low wage earners, construction workers.what will happen when all the projects r completed?it is not easy to attract 15 million tourist every year as prediced.people employed in tourism industries will not be high flyers.wheather this real estat boom will sustain? how long? time will tell. caution required

[rayk150]

we are investors most of us, dubie is over, look at other areas in region, but Dubie, look get out, I was a building contractor in Dubie for many years and it was boom times, now all the investors buying are crazy, the gains and returns are gone, my sons still have contracts in the city and its a good business, but the poor guy buying apartments are ???, i don't know what they are thinking really, who to rent to, what are the expections of investors and to sell now or in the years ahead-who to?.
As a investor now and most on the forum are, we want returns, that means first rental, then gains in the property value and last a market to sell our property into when required, that the bottom line.