Correction or Crash?

[Sportsman]

Much of this was beyond dubai, but the problem is that people are panicking....there were too many speculators in the marketplace. They are having to make payments they didn't intend and now can't afford. Once this works it's way through things will settle, but it'll be a major correction the the interm. Prices are already falling fast and there are no lending incentives, and interest rates that are too high. The only silver lining is strong rents and this is the key to a stable market. The gov't needs to step in and control the panic, start lending at better rates and be more transparent. Developers have also been at fault, manipulating the prices upwards to crazy heights, over 2000.sq/ft for an average apartment ? and 4000/sq in luxury? I think not. Things will get better eventually but people who don't have to sell should hold tight if possbile.

 

[cheemz]

The U.S property market is still holding up, havent heard any 50% drops like here. Yes maybe in the stock market, but then that is the stock market. Realestate in other countries stay flat and or loose marginally, not what we here...

Exactly... thats why i said 'financial markets'...
however, from what i hear, miami and LA have indeed had real estate prices fall over 50%... correct me if im wrong...

 

[Wannaberich]

What goes down must come up again.Dubais prices will recover without doubt.Its not a question of it but when.
Those who can afford to hold on to thier properties have no problem.Those who were stupid enough to stretch themselves may suffer.If they cant make the next payment cos they cant sell and figured nothing in Dubai would go wrong then they will panic sell.
Prices will go back up.

 

[monsi]

I think there are some people who are strategically placing panic-stricken posts on this and other forums.

They are easy to identify from the tone and quality of the posts and appear to fall into two groups of Machiavellian posters who are using forums such as this to:

• increase the panic in the hope that this will allow them to pick up some exceptional bargains
• vent any resentment they may have; they come across as bitter and jealous, possibly because they have not been able to buy

(If you want an example of resentful read aviduser on this thread
http://www.propertyforum.com/forum/dubai-property/11091-dubai-bubble-bursts-2.html)​

Then there are some posters who are genuinely worried and are being infected by the fear. They are ideal targets for the scavengers who are hoping to take advantage of their sense of desperation.

Some individuals have a lot to lose if the Dubai property market deteriorates but the Dubai 'powers that be' have a great deal more at stake and they are about to be forced into some serious action.

They cannot afford for the current situation to continue - or get worse.

The trick now is to keep cool and wait.

 

[Wannaberich]

Imagine 10 years down the line.
A finished metro system.
The two tallest buidlings in the world,Burj Dubai plus Nakheel Tower.
Another 7/8 'Supertowers'.
Two fantastic airports.Possibly the biggest airline company in the world,Emirates.
The two biggest malls in the world.Dubai Mall and COA Mall.MOE with the ski slope.
3 finished and inhabited palm islands.The magnificent Palm Jumeriah with Atlantis,QE2,Trump hotel.
Dubailand with a number of operating theme parks and attractions.
Al Bawadi well underway.
A thriving Business Bay.
Arabian Canal completed and with many buildings under way/finished.
Waterfront well under way and including theme parks etc.
Countless fantastic and opulent hotels,clubs,bars,cafes,restaurants.The
fantastic promenade of shops,bars at JBR.
Dubai Marina.
Beaches and sun.
Sports city with its many events.

God,who won't want to live here !

 

[TommyC]

Imagine 10 years down the line.
A finished metro system.
The two tallest buidlings in the world,Burj Dubai plus Nakheel Tower.
Another 7/8 'Supertowers'.
Two fantastic airports.Possibly the biggest airline company in the world,Emirates.
The two biggest malls in the world.Dubai Mall and COA Mall.MOE with the ski slope.
3 finished and inhabited palm islands.The magnificent Palm Jumeriah with Atlantis,QE2,Trump hotel.
Dubailand with a number of operating theme parks and attractions.
Al Bawadi well underway.
A thriving Business Bay.
Arabian Canal completed and with many buildings under way/finished.
Waterfront well under way and including theme parks etc.
Countless fantastic and opulent hotels,clubs,bars,cafes,restaurants.The
fantastic promenade of shops,bars at JBR.
Dubai Marina.
Beaches and sun.
Sports city with its many events.

God,who won't want to live here !

Alright, sounds good, shiny and all, like the local news. What about:

In 10 years, all the currently finished buildings start to detoriate heavily due to the poor construction quality, they are now barely worth the initial building cost due to the low quality. Dubai has been a haven for overcrowded countries inhabitants, wages are low but still significant for them, and the only thing holding it together is the fact that labor is so cheap that that the sheer amount of people working in business and staying in their, now, low cost apartments, make it an attractive place for companies to make business and set up offices. Gone are the times when expats could come here and get good salaries, except a few management positions here and there, apart from that, wages and living is so poor that no one cares. Dubailand construction had so much money saved so it didn't turn out to be the supersuccess they hoped for, visitors are scarce since the once glorious picture of Dubai has been replaced by a low-wage country, but still known as a business centre, which still have business people visiting. The new airport is now a joint venture between Dubai and Abu Dhabi and attracting a lot of people which travel through Dubai. The once nice beaches have all been replaced by commercial interests and the only way to be able to go to a beach is by paying a decent amount of money to one of the few remaining succesful hotels.

What do I know, makes me wanna puke though when the Information Minister of Dubai tells his side of the story

 

[Wannaberich]

Alright, sounds good, shiny and all, like the local news. What about:

In 10 years, all the currently finished buildings start to detoriate heavily due to the poor construction quality, they are now barely worth the initial building cost due to the low quality. Dubai has been a haven for overcrowded countries inhabitants, wages are low but still significant for them, and the only thing holding it together is the fact that labor is so cheap that that the sheer amount of people working in business and staying in their, now, low cost apartments, make it an attractive place for companies to make business and set up offices. Gone are the times when expats could come here and get good salaries, except a few management positions here and there, apart from that, wages and living is so poor that no one cares. Dubailand construction had so much money saved so it didn't turn out to be the supersuccess they hoped for, visitors are scarce since the once glorious picture of Dubai has been replaced by a low-wage country, but still known as a business centre, which still have business people visiting. The new airport is now a joint venture between Dubai and Abu Dhabi and attracting a lot of people which travel through Dubai. The once nice beaches have all been replaced by commercial interests and the only way to be able to go to a beach is by paying a decent amount of money to one of the few remaining succesful hotels.

What do I know, makes me wanna puke though when the Information Minister of Dubai tells his side of the story

What a complete load of bollocks.
Sure Dubai won't be perfect but then again nor is New York,London,Rome etc.
Every city has the good and the bad and so will this place.
If your so down on Dubai why dont u go post somewhere else.

 

[PropGuy]

Gone are the times when expats could come here and get good salaries, except a few management positions here and there, apart from that, wages and living is so poor that no one cares.

Whole world is in finacial trouble, it is not just Dubai. Actually, Dubai is one of the few places in the world with economy still in growth and with least layoffs. Many people from NYC and London are applying for jobs here esp in the finance sector.

 

[PropGuy]

What a complete load of bollocks.
Sure Dubai won't be perfect but then again nor is New York,London,Rome etc.
Every city has the good and the bad and so will this place.
If your so down on Dubai why dont u go post somewhere else.

I think he is sore because he bought properties with the wrong company "Schon Properties".

 

[TommyC]

What a complete load of bollocks.
Sure Dubai won't be perfect but then again nor is New York,London,Rome etc.
Every city has the good and the bad and so will this place.
If your so down on Dubai why dont u go post somewhere else.

Who said I'm so down on Dubai? What I'm saying is that it maybe won't be so shiny as some people make it sound. And as a matter of fact, the very apartment, and building I'm living in which is currently 4 years old, is basically detoriating already to such an extent you would believe it's 10+ years old.

Imagine 10 years down the line.
A finished metro system.
The two tallest buidlings in the world,Burj Dubai plus Nakheel Tower.
Another 7/8 'Supertowers'.
Two fantastic airports.Possibly the biggest airline company in the world,Emirates.
The two biggest malls in the world.Dubai Mall and COA Mall.MOE with the ski slope.
3 finished and inhabited palm islands.The magnificent Palm Jumeriah with Atlantis,QE2,Trump hotel.
Dubailand with a number of operating theme parks and attractions.
Al Bawadi well underway.
A thriving Business Bay.
Arabian Canal completed and with many buildings under way/finished.
Waterfront well under way and including theme parks etc.
Countless fantastic and opulent hotels,clubs,bars,cafes,restaurants.The
fantastic promenade of shops,bars at JBR.
Dubai Marina.
Beaches and sun.
Sports city with its many events.

God,who won't want to live here !

If I may....what a complete load of bollocks. No place is perfect as you said, so if this is their plan....well, go figure. We both agree perfect doesn't exist, and this sounds just a tad to perfect...

 

[TommyC]

I think he is sore because he bought properties with the wrong company "Schon Properties".

What I'm saying is: Be realistic, I'm sure it's gonna be fine in the long term, but maybe not THAT shiny. Find somewhere in between the stories, the shiny story was uncalled for and just suggests that someone have bought a lot of property (or alternatively, as the names suggests: is a real estate agent that made a GOOD commission for a long time and is now looking to lose some of it invested in property and mortgage isn't even an option since no fixed income) and want to get the hype going again to get out. It's a fact that the reports in the newspapers until basically today have told the story of "Dubai won't be affected by the financial crisis whatsoever" etc. etc. So, relax, it's nothing personal, was just a post to go against the typical shiny story of Dubai, which turned out to not be true the way "they" told it (not effected by the crisis etc.). Other parts of the world may have been struck harder, but still, no one is immune and time will tell what will happen.

As I mentioned in my post, which you might have missed was the last sentence, which was the key of the post:

What do I know, makes me wanna puke though when the Information Minister of Dubai tells his side of the story

which was my way of saying: Look, "they" have been trying to tell us for some time now how shiny Dubai is separate from the rest of the world, a lot of people have started to disbelief that, and eventually it turned out that what "they" told us wasn't really acnhored in reality, rather a vision. So we need to have a more realistic view about what is going on. Real estate agents maybe cannot expect to make millions on people buying the vision any more.

Anyway, I'm looking forward to see what happens, not only for Dubai but the entire world.

Small edit: UAE

Don't know who's writing it, but if we all start there and work our way up and back on track again, I think that's they way to go instead of denying and dreaming.

Mr Alabbar said: “We have to recognize the reality on the ground and work differently. We have to collaborate and in time, in the future, we can be competitors again.”

 

[Wannaberich]

I think he is sore because he bought properties with the wrong company "Schon Properties".

Actually Ive done very well with my two properties - so far.If they go down,fine,they will come back up,dont care,couldnt give a stuff.There's no coward here too frightened to invest.

 

[Wannaberich]

Sorry Tommy couldnt be bothered to read all of your dribble but I know where your coming from.You're saying dont believe all the hype about Dubai ?
Well I know the construction quality isnt the best,I know theres too many buildings going up(although thanks god its come to a halt)I know the culture of dubai is being stripped for the sake of money(blame the ruler)I know they have hookers(oh dear)I know they take the piss out of construction workers(let them go home and earn nothing)
No really I know its not all shiny.There's alot of stuff to sort out.
You know what though,50 miles up the road from me is London and boy does that place have problems.
Dubai,a city with problems.Whats new?

 

[georgihh]

Sorry Tommy couldnt be bothered to read all of your dribble but I know where your coming from.You're saying dont believe all the hype about Dubai ?
Well I know the construction quality isnt the best,I know theres too many buildings going up(although thanks god its come to a halt)I know the culture of dubai is being stripped for the sake of money(blame the ruler)I know they have hookers(oh dear)I know they take the piss out of construction workers(let them go home and earn nothing)
No really I know its not all shiny.There's alot of stuff to sort out.
You know what though,50 miles up the road from me is London and boy does that place have problems.
Dubai,a city with problems.Whats new?

OK Dobuy

Where are you at the moment?
Are you in Dubai and have you made some money from the properties if yes please explain if not keep on dreaming but just tell us the story
In details please

 

[Wannaberich]

OK Dobuy

Where are you at the moment?
Are you in Dubai and have you made some money from the properties if yes please explain if not keep on dreaming but just tell us the story
In details please

Where am I at the moment?open your eyes and read my last post properly.
Have I made money from my properties?****loads thanks but then again not a penny until I sell them.
Mr dreaming?yeah sure of the day when I eventually sell and swim in all that money.

 

[dubister]

I think people don't get in thier heads that the problem is not just speculators and flippers. The people who are happy are saying, dont worry things will come back have made thier money already or bought early on when things were very low. So they have very much little to worry about. The issue is that they are the same people who come to the forum and say hell with the speculators and flippers. Well i think everyone gets that point, and everyone says to hell with them. But the in reality the problem is greater... what about the end users and serious long term investors who bought in the last four-six months ago with thier hard earned money. They are sitting on negative equity, ZERO lending or THEFT LENDING of 9.5% + i.e high rates.

And sorry to say this aint the U.S of A or the UK where people have social benefits and others ways to weather the storm. In the developed countries people default and claim bankruptcy and have ten years to have clean record again. Here they will bail out them selves out by defaulting and possibly leaving. I think the lenders, govt and other institution should be lighting fast to solve this problem. I think the steps taken to consolidate are good, but the next step is to start lending at decent affordable rates (reasonable EIBOR +) and incentivise living in Dubai again, somehow that is not happening anymore. I can start counting the number of expats telling me they are mentally preparing to pack up. And these are not real estate people, thes are average expats working (engine of dubai). And they are not afraid of leaving, because where they come from, they have ample to start again or continue thier lives comfortably, jobs are ample there too because economies there are huge.

Remember, we started seeing articles about real estate bubble crashing and no one believed it, now it is a reality... the following is the new name of the game and dubai has got to do something fast to turn the boat around before we hit the ice berg

Negative equity, defaults 'now a Dubai reality' - Real Estate - ArabianBusiness.com

 

[mahiwal]

hi all,
i have 2 units in mushrif height. has anyone got any news about the project?
is it being cancelled? i have to pay my second installment on 10th March. can i delay it?
i think they are charging late fees for defaulters? please suggest.