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Has the bubble burst?

Discussion in 'UAE Property' started by sonofthedesert, Sep 16, 2008.

  1. sonofthedesert

    sonofthedesert New Member

    Hello All:

    I'm sure we are all too familiar of the impact of the recent Morgan Stanley UAE Real Estate report and current worldwide market conditions on property values in the UAE. However, I was wondering what people's opinions are on whether or not we could be seeing the beginning of the end in the UAE. From a personal standpoint, I bought 2 apartments on Reem island (Hydra Serviced Apartment-studio and Beach Towers-1 bedroom) and have had them both on the market for several months. I have not even had one offer or even acknowledgement of interest. Are other people experiencing the same thing with re-sale in Abu Dhabi now? If so, what are your suggested strategies? I am hoping to still get some interest at Dubai Cityscape in Oct and the Abu Dhabi real estate show in Jan 2009. If I still haven't sold at that point I may try and sell to an end-user at their completion dates or use them for rental income.
    A friend of mine has 2 apartments that he rents out in Int'l City. He gets decent rental income, but has also not been able to sell either place. They've been on the market since March 08.
    Not the 'bouyant' re-sale market I expected.
    cheers. :(
  2. psychiatrist

    psychiatrist New Member

    Hold on to your property, the macroeconomics of the UAE is still sound, the government is flush with oil dollars, and the economy is booming, more and more expatriates will be looking for jobs in the UAE believe me and dont forget that China and India are not going to go into a recession and a bulk of investors particularly from India and Pakistan are flocking to the UAE.
    Sit tight, be in it for the medium and longterm
    Morgan Stanley avoided bankrupcy by being bought by Bank of America, they cannot take care of their own affairs, so why should we trust their advice as far as the housing market of Dubai, they were just trying to scare of American investors because they are aware that the GCC is the biggest realestate market in the world and the American housing market has become one big socialist coucil estate
  3. General Trading

    General Trading New Member

    agree fully. The Morgan Stanley report scared everyone but that is only because it was the first (to my knowledge) report that predicted a downturn. the market is not going to stop, it is going to get a lot more sensible yes, people at the moment are trying to reap the rewards they have heard legend of. villa's in festival city went up 40% overnight a few months back, that does not represent a real market and it forces other investors to panic and try to sell thiers.

    the abu dhabi market is doing a similar thing that dubaiworld did a few years back (and what ajman is about to do) - its being led by speculators.

    the simple fact is that the worlds money supply moves around every few decades - at the moment its in the same place we are, people arent going to stop coming here and people need houses :)

    if you're looking for a 5 year investment get into saudi. huge domestic market and shedloads of space. saudi is going to be huge.

    you'll get you money back plus a healthy profit.
  4. General Trading

    General Trading New Member

    and re international city; knowing the build quality and the smell from the sewerage plant next door - and there not being enough parking or decent shopping amenities - would you buy there? ;)
  5. desres

    desres New Member

    Fully agree regarding Saudi as being the next move, at least in the Middle East
    i used to sell Dubai & Abu Dhabi & never seen a market stop moving so quickly, but thats possibly due to over pricing / No quick flips anymore / glut of properties available / lack of confidence as a whole
  6. passi0nate

    passi0nate New Member

    In International City Which Cluster are they located cause right now the hottest property is INTERNATIONAL CITY ..

    Please give me some more info if possible. Thanks
  7. desres

    desres New Member

    Hi sonofthedesert

    I have so many properties for sale in Al Reem... Hydra Serviced / Hydra Residential / Sigma not even getting enquiries anymore & i advertise them regulary ... to be honest dont think City Scape will help much, investors will be looking to buy launch prices from the developer
    think your best option will be renting after completion .. thats pretty much guarenteed income as lack of Residential props in Abu Dhabi
  8. sonofthedesert

    sonofthedesert New Member

    I'll get the info to you in the next few days.

  9. sonofthedesert

    sonofthedesert New Member

    Why would people be so eager to buy direct from the devloper at prices in the 2800-3000 per sq ft range (probably more like 23-2400 per sq ft after nobody buys at such inflated prices at Cityscape on the 1st day) when thousands of re-sales are available in the 1800-2000 per sq ft range. Everyone knows there are no more quick flips so why would you buy from a developer at such ridiculously inflated prices. If I was looking to buy something to live in or even rent out, I would have to seriously consider a re-sale as they are hundreds of thousands of dirhams (or even dollars for that matter) cheaper than the new ones from the developers. It doesn't make any sense. Perhaps there really is no demand for these things and its all just speculation. I think that Cityscape may reveal this whole thing to be the house of cards that it really is.
    Last edited: Sep 22, 2008
  10. desres

    desres New Member

    Yes think everyone's interested to see what City Scape will bring ..

    some Investors do prefer to buy pre launch / launch rather than resale .. it really depends on
    how much has already been paid plus the premium --can add up to more than the low downpayments direct from developers ..
    2.5% down & a good payment plan works out a lot cheaper than a resale at
    10% 15% 20% already paid + a 10%- 20% Premium
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