arabian ranches

[renter1]

continuously posting negative comments in the name of truth does not help investors.

Pretending that everyting is OK does not help investors either. They need full information on the market to be able to make a decision.

Besides, the quicker this crash reaches the bottom, the quicker it can stabilise and bounce back.

 

[AEG]

logic and common sense are key

Sash2 is obviously on a downward spiral and is bringing all his frustrations to the forum. I feel bad for people who are desperate to sell and who might lose tremendous amounts of money. I might too if things really implode, but what can you do? It was a wild game and now fundamentals are coming back with a vengance. Most people here have never seen a down market like this - it's all been a party in dubai. Things will come back but those caught with properties at 5% down with no chance for making payments will lose, but that is called gambling. That game is over. In another year things will bounce off a bottom and get better...they always do.

DubaiSV and sportsman...many thanks guys for these positive and constructive comments...it really helps when there are logical and forward thinking people in the market. There are many doom day speculators in the market nowadays who are so addicted to speculation to the extent that they are speculating on how much the market will go down as well. The speculation these days is that marina will go as low 750 and 800 dhs per sqf and burj dubai will sell for 2000 -2500 per sqf feet. I called these guys once and they told me that the unit for 3000 was sold but I have one for 5400 dhs. Unfortunately, the sentiments are very negative in the market these days and what is making me worried is that many genuine end users who have been living in their properties for the last 2, 3 and even 4 years are freaking out these days and offering their properties for sale at distressed prices. These are people who bought 3 and 4 years ago, so they are absolutely safe from the current market turmoil. For god’s sake if you kept watching you property going up from 1.5 million to 3.5 million over the last 2-3 years without cashing in, then why the hell would you dump it today for 1.75 and 2 mil. I’m afraid that Dubai without foreign investors and some element of speculation will not go back to the previous levels in next year or two. It might take much longer and will require a significant shift in the economy, population growth and business model

 

[AEG]

...another broker...

i lost money but it was a very insignificant amount to me.. but yes I have seen people losing their life savings.. not because they were bad investors but because their developers either ran away (wind prop, barakah) or their developer doesnt intend on completing the project (Schon, waran etc) or becuase the regulatory authorities changed the rules of the game overnight. Take it easy guys. You should all need to relax. I know you guys want to hide the falling prices because you want to portray a false image of this place. But dont you think the controlled media is helping you enough already? There should be some source from where REAL information should be made available. If even blogs and forums are controlled by brokers like you guys, where will the investors get real information? Think about it before you start pointing fingers again. As for the Signature Villa for AED 4.8m, that IS the asking price nowadays.. my friend ALMOST bought one but it got out of his hand. Ofcourse most of the owners are not willing to sell it at such a low price but this IS the ASK price.

I guess is this was the asking price so it is surely negotiable, maybe cut down another 10 or 20% and get for 4 million. Get real!!!

Who wants to hide falling prices...it's the talk of the hour on every forum, blog or social gathering...The media is also focusing so much on Dubai as if it is the only place in the world suffering from the crisis. Be it local or international media. So please keep your REAL information for youself. You actually sound more like an aganet to me...many agents today keep want the market to decline, so they can offer killer deals to their cash rich investors

No hard feelings, but if you invested with the likes of lagoons, Al barakah and all these dodgy developers then your invesment was surely lost from day one, regardless of wehther the market was booming or crashing.

Have a nice day

 

[AEG]

Pretending that everyting is OK does not help investors either. They need full information on the market to be able to make a decision.

Besides, the quicker this crash reaches the bottom, the quicker it can stabilise and bounce back.

Excuse my ignorance, but are suggesting the market bottom or fair value is below the orginal price of properties sold 3 and 4 years ago

 

[revolutionary]

Excuse my ignorance, but are suggesting the market bottom or fair value is below the orginal price of properties sold 3 and 4 years ago

I wonder how many investors actually calculated fair value for their own purposes? I bought an apartment at a premium because it seemed to suit my purposes at the time (which were not speculation only the opportunity to be inspired by dreams becoming reality) and was therefore fair value. I then looked at other more sane investments and tried to work out how I would make a decent return on them - all those failed to even come close to a sensible return so I didn't invest.

The outcome of this is that I had an apartment that on paper made a dizzy amount of profit that even more quickly evaporated b ut I am still left with the inspiration which should give a payback. The potential investments I could have made but declined as they made no business sense have probably fallen to less than 20% of the offers since no-one is buying off plan right now.

I'm still happy having ridden the roller coaster for the right reasons and avoided just chasing money on very shakey criteria like prices always go up!

 

[georgihh]

What was happening last year was complete madness.
The off plan properties were 30% more expensive than the completed. This is because people had no real cash and was very easy to flip the paper and double your money. Investors, developers, contractors were working on a huge margin.
The off plan properties were dragging the prices up and now we go back to the real prices.
There is not sustainable cash to cover all the speculation and the clever investors cashed up and go.
Now the prices will go down until the demand or the cash equals the supply
The market started to settle down but will go more down because the contractors started to reduce prices.
The cost per sqft is not more than 200 DHS for ok development. If we work on 100% profit the selling price should be 400 DHS. Now is up to the government to step in and protect the prices.
I remember the OP price per sqft at Springs was about 300DHS. And Emaar were more than happy. After five years they started selling for more than 1500 DHS per sqft and this was the end of the story.
People run out of cash, stopped believing and pull out the money out of the country.
I don’t think this is a credit crunch or whatever this is more likely a pyramid
Unfortunately whoever bought last year or the year before is at the bottom of the pyramid .

 

[Hussein Awadh]

Prices have fallen again, especially in the rental market. Just today I received an E-mail from Arabian property with studios in Discovery gardens now going for 60k and 65k whereas a month ago when I was searching for a home for myself there, it was no less than 70k.

Studios in Dubai marina for 500k?? 2 BR's in JLT for 680k!!! Catch them while you can!

 

[ngn97141]

Geez I bought property at the end of the pyramid... 2008... the good part is I bought good developers which I know will deliver. The funny part is I had friends who bought properties somewhere in 2007. flipped them... made some money and then bought 3 b/r apts in the Executive towers for 3.8 - 4 Mil with 3M mortgages. The price of those apts today is anywhere between 2M - 2.5Mil. What they owe the bank is waaaaaaaaaay more... SO technically if they just write off thier 1Mil and just move on... they can actually buy another apt and save 1M. That just tells me that it doesnt matter where you really bought... 2006... 2007... 2008... most of us are actually still holding on to some properties that we ended up buying in 2008. Very few investors actually cashed out and are sitting with profits. The rest of them just flipped some and got stuck with some that they couldnt flip. Everyones losing money..