Serious concern about UAE Property Market

[Investoman_uae]

Originally Posted by syedaat

Yeah it must be getting even tougher in UK. Glad I left there 6 years ago, although I had a good number there too. But have never looked back. I am now looking to sell my house there too and invest els where with a better return. I have bought a far larger Vills here to live to avoid paying rent, which was Great move.

So when r u guys moving to Dubai!

Am already in UAE, been living and workin here since a year and half.

Am selling my property too in UK, but because of the messed up market, its taken ages, been on market for 4 months. I am in a hurry to get rid of it and invest elsewhere also.

Inv.

[maximusprime]

Originally Posted by DoBuy

Not to mention crime,gun culture,ever increasing amount of immigrants,crap weather,high taxes,yeah all is real good.

Dont get me wrong, I agree that these places have their problems, Maybe there arent as many guns but there is plenty of crime here too, its just not allowed in the papers, the weather is crap for about 4 months out of the year here too in the summer. you got me on the taxes part. I just dont think that just because NY and London have high prices means that we can assume Dubai will be able to sustain the same. They arevery different places.

[Investoman_uae]

Lets talk about cost of construction. Anyone here a Quantity Surveyor? Or Project Manager?

I just need to hear their views about whats goin on with contractors in this market.

Alot of contractors are very worried, I was just talking to a client of mine and also a bank manager about how there is an element of fear.

When a contractor agrees with a developer a price per square foot, now what they do, is they always put a clause in the contract to say that if the prices rise above 25% (example) they will share this loss with the developer.

The contractor cannot pay the rise in construction prices off his pockets alone during the term of construction.

Developers like Damac are facing a huge problem with this issue. They are not making much profit, cos the cost keep getting closer to the selling price, especially when they promised to provide such flashin futuristic towers. Its gona cost them alot, and I am not sure if they can deliver what they promised they will deliver.

If they cant, then they will delay it until they can afford it or get finance help from the banks.

Just wanted to share this concern in the market right now.

Inv.

[afd]

don't agree with that, i believe dubai gov would't let that happen.

[DoBuy]

Originally Posted by afd

don't agree with that, i believe dubai gov would't let that happen.

Dubai gov can't do anything about it unless they are prepared to bail out Nakheel financially.

[Vicks]

Originally Posted by DoBuy

Dubai gov can't do anything about it unless they are prepared to bail out Nakheel financially.

Is Nakheel in trouble?

I heard about the Badrah spectacle by Nakheel! Nightmare for people who came from far places.

[afd]

if the gov done nothing i believe sheikh mohammed will do somthing!

[DoBuy]

Originally Posted by afd

if the gov done nothing i believe sheikh mohammed will do somthing!

He can't bail out developers everytime they are in trouble.Its nothing to do with him.These developers have made tons of money so I for one have no sympathy.

[georgihh]

At the moment there is a huge demand for properties and not enough due to:

1. Not enough complete buildings
2. Very few of the completed are registered with Dubai land department (its very difficult to resale).
A lots of cash is poring into the country from overseas and there is not enough properties witch act in accordance with point 1 and 2.
If points 1 and 2 are completed for all the buildings the prices will double yes double in two months.

That’s the way Dubai government is trying to cool the economy but for how long.
The new price index for different areas will help keeping the price reasonably stable for some time.

Expect further restriction in buying and reselling properties in Dubai as this is the only means to fight with the inflation

[DoBuy]

Originally Posted by georgihh

At the moment there is a huge demand for properties and not enough due to:

1. Not enough complete buildings

How do you know that?No-one seems to have figures for how many people are moving to Dubai.There are alot of properties empty looking for tenants.