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Distress Sales in Dubai - Why?

Discussion in 'Dubai property' started by jomonanu1, Nov 11, 2008.

  1. jomonanu1

    jomonanu1 New Member

    I do not know why people wanted to do Distress Sales. Dubai, it will take time to mature, the correction, I mean the real correction will take only after many years. The government is giving protection to the Dubai Investors. The projects are announcing in Dubai is still at the beginning. The government has a plan behind this, they will protect the investments.

    Look at the new Investments, Meraas for the example. It will cover and spread over Satwa and Jumeirah 1&2. With in a couple of years, the tenants have to move out of this area and look out for new areas to live. They can move to JLT, Marina or to the Dubailand only, so there is not going to be any more vacant flats or villas.

    The same way, there are projects, the government is going to launch , revamping the entire Ras Al Khor and Rashidiya by next year, again the tenants have to move out to new destinations. Followed by Al Qouze, Deira and Al Ghusais and at the end, it is Bur Dubai and Jumeirah, Umm Suquiem area. All these projects will be finishing by 2025.
    Think, once Deira and Bur Dubai is going for a shift, where all this public will move in to.By the time, all Dubailand will be congested and the rental Income will be more.

    Other than this, please look in to the projects announced already. The new Al Maktoum International Airport at Jabal Ali needs 135000 employees, once it is operational. This airport will open in the 4th quarter of 2009. Look at the number of hotels are coming up, according to Movenpick, they alone need around 12000 new staffs by the end of 2009. The Metro line will be operational from 2009 and the construction will start for the Blue Line and Purple line from 2010. Once Business Bay is complete more global giants are moving to Dubai.

    Right now, Dubai is the only safe heaven for the Investors. People they lost jobs in US, UK and Europe, they have move towards Middle East. 90% of those people are eyeing Dubai. With in months they will move to Dubai and they started buying properties, the prices will again go up.

    After all, as RERA and govt departments say, Dubai is not a market for speculators. This should be ended. Right now, the Investors are looking for resale from day one of the properties, In future; they can only resell it only after one year or after the completion of the project.

    Dear investors, please note, Dubai is not ruled by Democracy but Monarchy. In democracy, there are ruling party and opposition and they can adopt any type of policies. That can lead destruct ions in the market. Dubai is ruled by Visionary, Business Oriented Leaders. They also have Business Interests. So they never let you down.

    Look at the Rent, it is just increasing only, I never saw it is decreasing. Again it will go up all these coming years. The present City cannot afford the flow of people right now. And Dubai is growing and it will grow only.
     
  2. Manuch76

    Manuch76 New Member

    I am also looking for buyers for multiple properties that my investor has bought. And yes, I would consider it a distress sale also, since the buyer is in panic over the financial crisis. I wish everyone would have the same beliefs and the vision that you have.
     
  3. rossantony

    rossantony New Member

    the economy is global..havn't you heard?

    Dubai, China, even little Laos and Vietnam are effected by the global economy, however well their own economy stacks up..

    What will be interested to see is what the visionary businessmen of Dubai will get into next..

    Here in Egypt we have seen a large rise in construction stocks against trend..why?

    Because arab businessmen are bailing out of Dubai on heavy stock losses and investing into Egypt.....



     
  4. Suru

    Suru New Member

    Face teh Facts in Dubai and UAE

    There is something very important which most of the people seem to miss out of sheer ignorance and interest in the green paper. How is an economy of a country run? Where does the country get the money from? How do the rich become rich, because they have a million(s) middle-class & low-class people (who make up the mass) to support it. Its like a traingle. However by the looks of what is happening in dubai, the place is being made up for the RICH only. Can you have an inverted triangle standing at its peak, i.e., can you have high number of rich people and less middle-class or low-class? Very soon the triangle will tumble.

    Most of the rich investing here are doing so out of interest to protect their black money.

    We are talking about shortage of houses to live here that is driving up rentals and also the cost of construction. Do all those apartments need a GYM, 2/3 swimming pools, hitech gadgets, all marble finish, expensive chandeliers, etc. and then we talk about conserving water and energy, what a joke. The middle class and low class does not need all this, it is the high class who need this and they are making the city in this way.

    Honestly, it looks like a SIEGE, a well planned SIEGE to rip the low-class and middle-class people of their money and savings and stop them from sending money back to their countries (as the ruler mentioned in one of the forums publicly that money earned here should be retained here). One very important thing they forgot, this place does not have anything other than oil and compared to the other Emirates, Dubai has very less. Which means all the money generated here, is actually coming from outside, which they want to protect from going somehwere else. I wonder how would the words CASH FLOW and LIQUIDITY continue to hold their meaning and one of the key positions in a economy.

    By the by, just as the rents were not controlled first, followed by a 20% rent cap, that was reduced to 15% and then to 7% and still no control....the residence visa concept with the apartments was withdrawn....after so many people including individuals invested their hard earned money. What is the guarantee that tomorrow while you are living in your house, someone will not come and say, this bldg is to be demolished under order from government..you need to vacate.

    All I can think is KISS your money good bye and better have a backup plan.

    For investments if significant scale into a country, a country has to give back something to its residents, what is it that is given here oh sorry I forgot they give you SALIK charges, they give you NO PARKING space, they give you time to enjoy in traffic jams, they give you the privilege to part away with your hard earned money by raising cost of living and rents on,on,on and on.


    Come on, lets face the fact, the world is not born new.

    There are several countries in this world that have established a mark on the globe since years

    why doesn't the country consult them and understand the best way to run the country, get peopel to invest in it, give them benefits, put in controls to protect people's interest, etc. why do we want to learn with mistakes first no rent cap landlords increase rents as they feel like...then 20%, 15% & 7% cap...still no control landlords somehow find a way to get awat with it .then we have the famous realy frauds .only after which we have escrow accounts,common the world has grown already .we are not inventing something new here why not implement controls that have been implemented and working else where? .

    Well the only reason I can see to go by learning mistakes and improving is

    b'coz its a well planned SIEGE and when a part of their SIEGE is exposed in the form of frauds or miscontrol..they come up with some "loose" controls to show that it is being controlled now.

    All I can is BEST of LUCK to those people who only look at the country's prospects by the bldgs coming up and not by the indepth fundamentals and corporate governance.
     
  5. rossantony

    rossantony New Member

    doombai

    some firms posting no sales in 3 months, loads of off plans going back to the developers due to the global financial crisis, prices down 40%...whats the truth? Is it out there?
     
  6. PropGuy

    PropGuy New Member

    yet I can't find the real estate I want. So many times I posted on forum get me a good deal yet no replies.
     
  7. sasherwani2

    sasherwani2 New Member

    There arent many brokers on the forum anymore. You should consult a good broker and inquire on distress sales. I knew two really good brokers who could get you the best deals in town but both of them have left the country. What exactly are you looking for?
     
  8. PropGuy

    PropGuy New Member

    Distress sales for The Address, Burj Dubai Tall Tower, JBR, J. Park, or PJA signature villa. Or good land price in sport city or JVS. Yesterday there was sale for approx 15,000 sqft land sale for aed 5,000,000.
     
    Last edited: Feb 9, 2009
  9. sasherwani2

    sasherwani2 New Member

    I'm not surprised since someone has to be crazy to be brining up any new buildings in Dubai.
    I'll check your requirements with my friends. Not everyone is willing to sell at the new market prices but you might get lucky.
     
    Last edited: Feb 9, 2009
  10. renter1

    renter1 New Member

    What do you want? There are plenty of deals out there but just aimlessly asking for them to be emailed to you is a little optimistic!!
     
  11. financier888

    financier888 New Member

    deals

    IF you wait till around April / May and going into the summer- you'll start to see real bargains coming on the market - in the areas you specified. In the downtown Burj area - many investors are still holding out hoping the market would come back by March - which it won't. As the impact starts to settle in - then the hard choices will have to made and with less and less tenants available - owners will start selling and dropping prices.. (like the Address, etc..) I think the Burj Tower may be an acception due to it's unique iconic status.... But, you may find some investors needing cash and then they'll come on the market. JBR should be easier... Time is on your side but you need to network with some good brokers that intend to stay here and work the market
     
  12. financier888

    financier888 New Member

    same planet?

    Rent increasing only? My freind, I think you are believing the rents being quoted in the paper and haven,t spoken to any rental agents - the few that are left. If you haven't seen rents decreasing i don't think we're in the same city. (better talk to Sash....) cannot afford the flow? - the current flow is OUTBOUND. Tens of thousands of apartments are VACANT. When you pass most of these developments at 8-9 PM and see the lights out - its not that the tenants are out smoking shisha somewhere - THE APARTMENTS ARE EMPTY.



    I just saw the movie THE DAY THE EARTH STOOD STILL - and after reading this post - I was wondering.. are we on the same planet? (comments in RED)
     
  13. sasherwani2

    sasherwani2 New Member

    This was an old post. The guy probably has woken up from his beauty sleep by now. Reading his post was like watching a Disney movie with the happiest of endings for all!!
     
  14. heat_wave

    heat_wave New Member

    I have a number of good deals in JBR and Burj Dubai area, let me know if you want a chat.
     
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