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When Will Dubai Property Be Bullish

Poll closed Dec 16, 2008.
  1. By the Start of 2009

    50.0%
  2. By the start of 2010

    50.0%
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When Will DUBAI Real Estate be Bullish

Discussion in 'Buying Overseas Property' started by golto, Nov 15, 2008.

  1. golto

    golto New Member

    1- First and foremost, excellent rental income, in top 10
    2- Best re-exporting city, in first three.
    3- Crime rate zero percent. Very IMP.
    4- Tsunami free port.
    5- City of wealthy people. By 2014 it will be in first 5 most expensive cities.
    6- Oil rich, can support its economy by oil earnings.
    7- Property/tourism based economy.
    8- Very close to unrest area, and wealthy ppl must come here for peaceful living.
    9- All of modern worlds best icons/facilities/wonders, whatever u may call are present here. Like, 7 star hotels, tallest buildings, formula one racing, sports, media city, medical city, etc.
    10- Liberal atmosphere.

    keeping in view all the posotive situations, and all the negative aspects as well, i am expecting it to be on a bullish trend, at least for the time being, by the middle of december, for atleast 6 weeks.
     
  2. golto

    golto New Member

    comments required by all the members.
     
  3. georgihh

    georgihh New Member


    Dubai is going to be bullish when the cash comes back
    40 % of the cash is out of the city
    Anyway are you selling or buying?
     
  4. mickthepropertyguru

    mickthepropertyguru New Member


    I have a few comments but agree with many of your points.

    1- First and foremost, excellent rental income, in top 10

    It has an excellent rental yield, but even the local papers are expecting this to drop next year, due to many reasons but more than lightly due to abundance of supply. You could even say its tricky trying to find rental properties at the moment.

    2- Best re-exporting city, in first three.
    Don't understand this comment ?

    3- Crime rate zero percent. Very IMP.
    This isn't true, It may be low but its nowhere near zero. Crime in Dubai is only reported when it has to be i.e. when a non native or emaratian gets killed. Its a 2 or 3 tier society. The people who actually build Dubai ie.. the india nationals aren't counted in the society and nobody bats an eyelid if one of these people is killed and it isn't reported. They look after their own interests and only publish the good.

    4- Tsunami free port.
    Ya thats true

    5- City of wealthy people. By 2014 it will be in first 5 most expensive cities.
    It could be.

    6- Oil rich, can support its economy by oil earnings.
    I think this is inaccurate, i mean there is a reason why they are developing the city for tourism. I think only 10% of their GDP comes from oil. They are running out i think. It cant be compared to Abu Dhabi. I mean they keep hitting oil every time they try to build !

    7- Property/tourism based economy.
    Very true

    8- Very close to unrest area, and wealthy ppl must come here for peaceful living.
    Its peaceful now anyway.

    9- All of modern worlds best icons/facilities/wonders, whatever u may call are present here. Like, 7 star hotels, tallest buildings, formula one racing, sports, media city, medical city, etc.
    The sky tower in the Burj is amazing, the building along the Zaheed high way are incredible. The Palm and beaches are incredbile. The sea is the clearest i have ever seen. Dubai is a man made marvel.

    10- Liberal atmosphere.
    Yes thats true

    But do you not feel that the new law (wrt one family per household) will impact the rental of apartments and villas ?
    Dubai is definitely feeling the effect of the recession, the stock market has been badly hit . Damac layed off 350, Emaar more, Nakeel, KM, Dyeaar
    also.
    Many of the above have not sold a property in weeks. Granted Nakeel is goverment run and is in charge of the palm etc.
    Most experts in Dubai are expecting a correction next year i believe.
    But for a rental investment , it is excellent. But Dubai depends on the rest of the world more that the world depends on Dubai.
    But i couldn't believe the amount development, mostly residential under construction, its unbelievable!
    The Russian are buying the most property there at the moment(over 30%). If Russia hit a recession, it could have a big implication for Dubai.

    What do you think ? I think the short term is definitely sideways or Bearish.
    I would have no hesitation investing in Abu Dhabi though!
     
  5. golto

    golto New Member

    .

    i am agent sir.
     
  6. golto

    golto New Member





    1- First and foremost, excellent rental income, in top 10

    It has an excellent rental yield, but even the local papers are expecting this to drop next year, due to many reasons but more than lightly due to abundance of supply. You could even say its tricky trying to find rental properties at the moment.

    Yes u r rigfht, all of motor city, and many other projects, but rent is not coming down. Take an example of JLT. Furthermore, vills persuation is also an episode of this demand enhancement.(as I perceive)


    2- Best re-exporting city, in first three.
    Don't understand this comment ?
    It means tha goods are coming in dubai, and re-exported to some other country. Like potato, it comes from paksiatn, enters Dubai, then bought by the trader of some other country, and re-exported there.

    2- Crime rate zero percent. Very IMP.
    This isn't true, It may be low but its nowhere near zero. Crime in Dubai is only reported when it has to be i.e. when a non native or emaratian gets killed. Its a 2 or 3 tier society. The people who actually build Dubai ie.. the india nationals aren't counted in the society and nobody bats an eyelid if one of these people is killed and it isn't reported. They look after their own interests and only publish the good.

    Sir, I feel secure here, no one is snatching my phone, and even the blacks are under control here(I mean black men) africans are not undercontrol even in Washington, or N.Y. I don’t have to worry to walk at 3 AM.
     
  7. georgihh

    georgihh New Member

    Agent 007 or agent with no wallet?
     
  8. golto

    golto New Member

    Hello,

    Investment these days is best in Dubai. Even though there has been short period of slowness in the Market it still is a great place to invest. Just read this:

    1. Dubai mortgage rates are around 8.5 per cent and have yet to adjust to the recent US rate cuts, which they have to do because of the dollar peg to the dirham. Just a couple of years ago local mortgage rates of seven per cent were available. Therefore the downward pressure on the cost of home finance is clear, and if the local mortgage market follows Hong Kong and becomes more competitive, then interest rates could go much lower, making it significantly cheaper to buy than rent. Real interest rates are already negative due to high local inflation.

    2. Rental yields in the Dubai market of 7-10 per cent are abnormally high by international standards. Rents are unlikely to fall in a booming market, so it is more likely that rising capital values will gradually pressure yields down towards global levels. There is no reason why rental yields should be higher in a booming city like Dubai than in a city where the economic outlook is poorer.

    3. The hype about Dubai development projects has admittedly duped even this skeptical correspondent over the years. The fact is that far less supply is coming on stream than promised by overenthusiastic developers, due partly to limited supplies of manpower and materials. Dubai Properties is one of the biggest and has just said it will deliver 5,000 units to the freehold market in 2008 which is not nearly enough to meet surging demand.

    4. Dubai house prices are still low in absolute terms in comparison to other global cities with similar salary levels. The HSBC survey of house prices in comparison to per capita GDP put Dubai and Abu Dhabi near the bottom. This is a historic anomaly that will be eliminated by price rises.

    5. Six years ago, when Dubai freehold began, it was a market without any formal legislation and regulatory infrastructure. Now it has world-class laws, a state-of-the-art land registry and a strongly-led regulatory authority. Hope has been replaced by experience.

    6. The Dubai Financial Market crashed in 2006 pushing local investors into property as an alternative. It recovered in late 2007, but is now again trending downwards with global stocks, and has become highly volatile, shifting over 10 per cent in a day. Expect stock market participants to again seek a more stable alternative.

    7. Indeed, the absence of investment alternatives is a major theme for 2008. Global stock markets have had their worst January in history. Recent US interest rate cuts leave deposits paying 2.8 per cent. This makes Dubai real estate look attractive as an alternative. Where else offers such a return?

    8. In the same way that the local stock market crash attracted foreign bargain hunters to invest last year, foreign investors in search of yield are also increasingly investing in Dubai real estate. Problems in the UK housing market might be dissuading some buyers, but large numbers of oil-rich Russians, for example, are now buying in Dubai.

    9. Dubai still has some undeveloped market niches in real estate, such as holiday lets and fractional ownership, which are big and even dominant market phenomena in many beach resorts around the world. This source of higher rental yield on property has therefore yet to be fully tapped.

    10. The Dubai Government has been the most proactive developer in the emirate, and its recent legislation and regulatory initiatives suggest that this support is not only likely to continue, but will respond appropriately to any adverse market developments.

    --------------------------------------------------------------------------------
    Last edited by mickthepropertyguru; Yesterday

    http://www.propertyforum.com/forum/...1-first-time-buyer-where-buy-5.html#post83995
     
  9. I don't quite understand... Are you trying to be ironic?
     
  10. aaron56

    aaron56 New Member

    Hi Micky,

    All the points you have quoted is great information on the city. I do fell that the real estate is going be bullish. People who would like to invest in overseas property would consider dubai for all the benefits it has as you stated.

    Thanks,
     
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