TA5

http://www.khaleejtimes.com/Displaya...ess_may546.xml


Dubai property: Scenario in 2007
Khaleej Times - 29/05/2005

Gulf money by Matein Khalid

TA5

Oh and for those that say AMEinfo is an unbiased and non-pressured site, have you ever found it funny that on every article talking about how 'hot dubai real estate is' there are 4 separate emaar ads on the web page...hmmmm....

Frans Wind

Hi TA5,

There's a weekly investment advisory program on Dutch TV that basically came to the same conclutions you did about two months back. They went so far as to issue a general investment warning in real estate in Dubai. Nice piece TA5, enjoyed reading it.

Frans

TA5

No problem, I always find it refreshing to find a truthful and well written article about the dubai property market, and not the usual propaganda that flows out of the local 'news'-papers.

I'm beginning to think that the crash will come sooner rather than later, I don't think it will take until 2007 for people to realize that they is horrific oversupply in this 'market' which has priced itself 3-4 times over what values should be at.

W10

Have you ever thought about moving to London?

All they ever do there is talk about property prices and 'the market'.

TA5

Nope, from what i hear the weather stinks...

W10

And I hear the property market is overvalued

shoushou

I really wish this would happen sooner,so that reality will kick in and put things back into perspective.
But,I really feel sorry for the people,expats,that went and bought at exorbitant prices and premiums,and are now in debt up to their noses.
But,TA5,you must be very observant not to miss an article like this,I had no idea that KT had published such an article,even though I read local news almost daily.
Spot on.
Cheers

TA5

Yea i hear that as well, but from what i gather its only leveling off, not a bubble the size of alaska.

shoushou

The best thing to do now is go to an underdevelopped Asian,African or South American country,and live the rest of your life there.
I hear that in Bangladesh,a person can live reasonably well for 3 months with USD100.So,with a pocket money of,say 50,000,one can buy his own house,and still live with the remaining money for the rest of his life.

stormer

So for those (of us) that are thinking about buying what is the best strategy to follow? Sit and wait?

Frans Wind

Be careful I would advise Stormer. With over inflated, unrealistic real estate prices it's not that difficult to loose money. If like the article states, supply catches up with demands. What do you think the big investors will do? Correct, start dumping the real estate on the market. The big boys that buy up big chunks? Don't buy for the same prices you do.

Frans

Happiness

Wait for everyone else to buy them.....(idiots)...and then perhaps take advantage of cheaper rents.......

TA5

Yes, obviously as KT and GN are government controlled stuff like this gets pushed to the back of the paper, whereas on the front page you still have 'demand completely overpowering supply in dubai property market...buy buy buy!'


Yes, I will feel a little sorry for the people who have bought properties at any sort of premium, as prices will drop well below original sale prices whenever this happens, and most will be stuck with massive amounts of negative equity. This is the part of the equation that most 'why rent when you can buy' people don't understand. When you go into negative equity, you are basically paying money for absolutely nothing, and there is nothing you can do about it, including moving.

But on the other hand, anybody who has bought here recently clearly doesn't have a clue about 'due diligence' or doesn't have their head screwed on straight.

shoushou

So say that someone bought a property and the crash happened and after sometime he got fed up with paying like a dunce,can he not pay for a period of time and then give the property back to the bank,like they do with your car after not paying for a while??