Thread Status:
Not open for further replies.

~~~~Developer going belly up~~~~

Discussion in 'Dubai property' started by, Oct 29, 2008.

  1. The most common question asked in Dubai right now would be:

    Are there going to be Developers going belly up due to market condition? Any intake would really help investors like me avoid investing with the wrong organization. Please list the developers in your opinion that might be at risk of closing up their door or unable to deliver their projects. Some signs would be lay offs, holding up construction or payment default to their creditors.
  2. PropGuy

    PropGuy New Member

    It is difficult to say which will, because that is negative publicity without any proof. But it is better to look for which won't. Emaar, nakheel, UP, Surooh, Al Qudra, and Aladar I think are safer.
  3. That is true

    Certainly. Usually with these developers they charge higher amounts for their developments. I believe that smaller developers is the way to go for higher returns. But which ones is a tricky question to ask now....:rolleyes:
  4. Fran

    Fran New Member

    Even if some one faces difficulties, the Government will back up them trough the banks; example The Plantation & Dubai Islamic Bank.
  5. Well I think the government will back up the major ones but not the small developers and certainly not the ones licensed through the free zone:eek:.
  6. PropGuy

    PropGuy New Member

    That takes out 99% of small developers if not 100% :eek:
  7. Fran

    Fran New Member

    Ok, the big developers will buy the smaller ones, or some other major investors will evaluate them as risk worthy.... Just big money will change hands...and that's all.

    It's time for people to wake up and face the fact that we live in a country with second largest oil reserve in the world (even if we are in Dubai, but not Abu Dhabi).
    Last edited: Oct 29, 2008
  8. Aha

    So that brings me to the first question, who do you think will go belly up first? :confused:
  9. PropGuy

    PropGuy New Member

    Yea people need to wake up, it not just the oil, economy is going pretty good here. Even US is asking help of GCC countries.
  10. PropGuy

    PropGuy New Member

    You expect people to list names without really knowing which developer will default?

    I like to say DAMAC, but I won't :p For these things you need to have proper proof before saying.
  11. Fran

    Fran New Member

    "Yea people need to wake up, it not just the oil, economy is going pretty good here. Even US is asking help of GCC countries."

    If it's up to me, I won't give them even half dirham...coz they don't deserve!

    Now they complain financial crisis etc....what were they doing in Syria few days ago?? How much cost the Iraq intervention during the last few years?

    Let them starve a bit, maybe some common sense will return to their minds!
    Last edited: Oct 29, 2008
  12. I do not disagree with you. UAE has earned it's strong position in the marketplace from a stronger foundation. It was not from developing real estate. I believe that there will be re correction of property value throughout the world including UAE. And with this price correction that you have seen in the U.S for example, a lot of companies including banks closed their doors. Similiar to the U.S pattern, due to increase in property values over a small period of time, investors have milked the cow so hard that the actual cow has dehydrated to a point of no return. The cow is in the E.R.....out of business.......Correction in property value is already taking position, sellers have flooded the market with their inventory bringing distressed and fear. Ofcourse that is the normal act of society. Some hold their position and some run.. Along that it has slowed down developers revenues which will force developers to either seek help$$$$ or go out of business.

    Nothing more than fear has stopped the movement of this market and I believe that smart investor will take their positions now because this is a buyers market. And with this said I the investor, I am trying to narrow down my of them is pinpoint the bad apples from the good ones....any inside info would be great... you can email me investorman80 (at) gmail (dot) com
  13. PropGuy

    PropGuy New Member

    Situation of US and UAE is different. US economy is very weak, and their spending on foreign policy expenditures is more than 1 trillion per year, so govt is spending extensively in two places - war and economy. This is increasing their debt at a very high rate and making it difficult for the economy to recover. Another thing is sub-prime mortgage.

    These two are not with UAE, (1) Economy is doing well (2) There is no sub-prime situation in UAE, RERA put regulations in place for mortgages which has avoided sub-prime mortgages and financial institutions are not in trouble here. (3) Property prices are still lower than Singapore and HK but economy is similar. There is demand here.

    What you are seeing is that people who were not end-users bought the property for quick money, now they feel in trouble and flooding the market. I guy could only hold on to 2 properties bought 5 in hope to sell few quickly and keep 2 for long-term. Now many of them doesn't have payments to keep those properties. Buyers who have the capacity to hold them long-term are waiting to see if prices go down further. Situation is reverses, before sellers were waiting if prices go higher, no buyers are waiting if prices go lower. Rise in value of $ has made properties here more expensive for international buyers so that is affecting the demand too.

    Now one of 3 things can happen,
    (1) prices go down further in fear
    (2) people might realize situation here is not so bad here so selling might start again, but premiums with reasonable premiums and more demand for safer property investment.
    (3) correction is short lived and you see more funds transferred in UAE market, because UAE is in sound economic position. But these would be long-term buyers rather than short-term. What happened will make flippers more careful from now on.
    Last edited: Oct 29, 2008
  14. Fran

    Fran New Member

  15. pinnacle1

    pinnacle1 New Member

    Has anyone info on Tiger properties, because their delays are now 30 months and will never respond to clients.
  16. docmood

    docmood New Member

    desperate times in Dubai

    I had a call from a friend who works for one of the larger and more prestigious real estate companies in Dubai.
    They sell and resell EMAAR property exclusivley. They have over 30 agents and each agent has a specific target to meet each month otherwise they get rid of them.

    Last month, the entire company sold 4 properties!!!!

    I won't venture to guess which developers are going belly up but I thinks there will be MANY real-estate agents going belly up pretty soon.

    The buzz in Dubai is VERY negative right now with people rallying against the new visa regulations, inflation, cost of living, reduction in qualiyt of life, salik etc. No-one seems to be happy here right now and many are prediciting that Dubai will be a ghost town within 12-18 months as people return to their home countries or elsewhere.
Thread Status:
Not open for further replies.

Share This Page