Autonomy

It's really quite obvious...

The International Monetary Fund warned Dubai on Tuesday that the emirate might need to intervene in its property market to prevent another boom-and-bust cycle of the kind which brought it close to default four years ago.

Over-inflated Dubai real estate prices crashed by more than 50 percent in 2009 and 2010, triggering a corporate debt crisis which unsettled financial markets around the world.

The economy and the property market are now recovering, but so strongly that the IMF worries another bubble could form - and because Dubai's debt has continued to rise, it might have difficulty coping with fresh instability.
Harald Finger, IMF mission chief to the United Arab Emirates, noted that by one commercial bank's estimate, listed Dubai property prices soared 35 percent from a year ago in June.

http://www.arabianbusiness.com/imf-w...le-511824.html

Kix

No shit sherlock - as they say.

Bongoman2

Am so glad that this isn't my home forever.
It'll make a beautiful ruins one day

shiva

Yup now tell us something we didn't know. Have to say I think we have a few years before it pops though. If they get expo 2020 it'll be sometime halfway through building that lot

mentalist

Wasn't somebody on here thinking of buying a villa in Arabian Ranches or thereabouts?

ex reg

What would the price of say a 1400square feet 2 bedroom condo cost in a development with all facilities??

Millhouse

A friend of mine is in HSBC's mortgage team. They are working on the basis of getting as many mortgages out of the door (and therefore bonuses) before December. The opinion being by it'll be either burst by then or so over inflated that the credit department will wake up and say no more lending.

Got to love the bonus mentality.

Millhouse

2m AED -- maybe

Millhouse

I agree with you. The bull run really only started 9/12 months ago. It's early days yet.

Tockalosh

Bring it on,
this time I am in a recession proof industry inshallah and I am already eyeing up Saheel

UKCityGent

Dubai has some bonds to roost Q1 next year - which will have some serious impact on the property markets. The bear run will be nice to see again.

sophia6396

just got rid of ours, never again!! absolute nightmare of owning property here is over!

The Dean

"........... the emirate might need to intervene..........."? The emirate is encouraging it - the merest hint of a possibility of a chance that someone might get wealthier by investing in Dubai is precisely what 'the emirate' wants. When the Central Bank tries to intervene by capping the amount banks can lend to finance house purchases, the banks scream in protest - and the proposals are postponed for five years.

I see no difference between this so-called boom and the last one - no economy can sustain itself during a slowdown (there will be one, sooner or later, of course) if it is built solely on rising house prices. I say 'so-called' because I am still not convinced it exists - I am watching this very carefully (I have to - it's part of my job).

Boomhauer

re. bolded
Could you elaborate please, or would you rather not do it in a public forum?

I'm especially interested in quality of construction of the property and problems with utility service.

Maxima

Last time, multiple people were saying "Dubai is different, they will not allow a recession here"