Has anyone invested in Dubai Skycourts in Dubailand? For some reason, the prices here seem below the prevailing market prices. Anyone knows why?
Do you think there would be any potential for flipping in the short term here? What sort of increases would we be looking at % wise?1. National Bonds is developing, so financially it is secure.
2. As you rightly said, it is below the market prices but not much. In my database, Avg SQFT price is 974 AED; whereas Liwan is around 1050; Ramram is around 1140.
Personally I believe that the major reason is architecture of the buildings. It contains apartments next to each other and rather giving an office feeling.
I would not prefer.
I am a technical analyst, expert on analysing current and historic transactions but can estimate future demand statistically in this market (no statistics at all, government is saying that inflation is two digits; what does it mean !!!!?) so I can not give % estimate for future.
BUT, Personally I am seeing still very strong demand in the market. Emaar /Bawadi is going to build a huge city in Dubailand which 50+ hotels only. It is a proof a high demand.
In Serviced apartments, be carefull. You need to trust the operator. Check Bonnington case. They changed profit sharing from 80-20 % to 50-50 % after selling everything. People lost big money and lost the other opportunities in this example. I am saying that just check the agreements very carefully if you decide to go in that direction otherwise business is good. Note that even Emaar decided to invest also in this business. In this area The Cube has excellent design but I did not check profitabillity table in detail.
If you have enough cash, the market is excellent for quick buy/sale. Focus on the buildings which will finish within 6-7 months. This is not feeling but STATISTICS.
Just an example. Check a 1 bedroom from JLT / Lakepoint. 851 sqft 1.12 million in Landmark and 901 sqft 1.215 in Tactical. 3 months later, instead of waiting your Skycourts which MIGHT be finished in 2009, get the evaluation in Lakepoint within 3 months and/or rent out in 2008-Aug from at least 120 K. Close your 1 year mortgage part immediately.
This is only an example. There many good opportunities like this one. But, my suggestion is focus with the ones to be Really completed within 6-7 months (even 3 months might be late).
As I said; I am technical expert not in the sales area. Do not let my suggestions as complete expert advice. Ask to property consultants also. I am just sharing my ideas.