Dubai property prices to fall 10%

[jungli]

That time is round the corner. Prepare yourself for distress sales

Regards

Roshan

Do you really think so Roshan? The authorities have said that they do not plan to curb flipping in the near future. If it does happen, apart from distress sales, do you think that the sale of new releases will drop to that of today?

 

[Roshan]

Do you really think so Roshan? The authorities have said that they do not plan to curb flipping in the near future. If it does happen, apart from distress sales, do you think that the sale of new releases will drop to that of today?

I could be wrong

The prices that the market has gone today is ridiculous. These prices just do not make sense.

The question I always put across is - would you pay 2 to 3 million dirhams for a 1000 sq ft ( usually a 1 BDR ) office or apartment. How will you resell this if you are a flipper. How will the rent pay for the EMI.

Business Bay has new launches at Dhs 3000 psf, while deals in the secondary are going at Dhs 1,800 to 2000. Typically the investor should be selling slightly less than the Dhs 3000 mark which is quoted for new launches. That's not happening because that might not be the actual price.

Todays prices are the usual tell tale signs of overheating.

As other members have said, one will have to put in a fair amount of research before buying.

Regards

Roshan

 

[mpat]

I read that al dar has introduced new conditions that does not allow to sell within one year of purchase , this has been done by nakheel also in palm trunk.

 

[jungli]

Well, whatever new conditions are introduced, I trust that RERA will not allow interest in the market to fall and as such have confidence that people will still rush to buy in Dubai.

Having said this, for me at least, medium to long-term investment is not on my agenda. I am a short-term investor and want to buy and sell quickly. For this reason I will be looking at options to join up with other investors who would want to enter a joint-venture, whereby everybody's money is pooled together and we underwrite entire projects as a group. In this way we can still buy and sell quickly, bypassing any newly imposed restrictions on reselling, and turnover a fast profit as long as there is still demand for new releases in the market.

Would anybody here be interested in this idea?

 

[ProperDub]

Real estate prices are expected to match prices in the UK by the end of 2008. What are the arguments which justify higher prices in Dubai than in the UK? If there are not many of such arguments, are UK prices ceiling for Dubai's market?

 

[Aryan Khan]

I don’t think Dubai’s market will fall so soon cause keeping 2 major countries economy e.g. uk and usa. Dubai is currently the hottest investment market. People are bringing million and million which will hold the property boom.

But yes any ‘strict’ rule by RERA can change the market.

They say to control the market, there should be some strict rules but investor will lose interest in the market and end users are not enough to hold the property pillar