Dubai house price crash - 41% in Q1 2009
May 1st 2009, 11:41 am
#46
Concierge
Joined: Feb 2007
Posts: 29,625
Re: Dubai house price crash - 41% in Q1 2009
well if they still want to live together ... they'll have to move to another 4 bed in JBR or family compound in Barsha 
... I ain't giving it for 140k .. I know several families from my old country that lost their jobs (and they are in a far worse situation than most of Western expats) so I'd rather get some good karma helping them until the situation gets better for them. There is always a solution if you look for it.
... I ain't giving it for 140k .. I know several families from my old country that lost their jobs (and they are in a far worse situation than most of Western expats) so I'd rather get some good karma helping them until the situation gets better for them. There is always a solution if you look for it.
May 2nd 2009, 8:02 am
#47
BE Forum Addict
Joined: Aug 2007
Posts: 3,287
Re: Dubai house price crash - 41% in Q1 2009
The only people who still think Dubai's real eatate markets is in good shape are Agents and people still invested.
It's OVER and will be probably for ever. Too many people have been burnt and prices are still too high for anyone with any real sense to get involved.
WE will look back on the last few years and wonder, not went wrong thats clear, greed and stupidity, but just WTF were we ever thinking ?
I heard on another site a bloke had a cash buyer for his place over OP. He said he will "hang on" HELLO if someone offers u more NOW than u paid for it SELL.
This physcologly is why ordinary people should not buy shares, they go up people feel rich, they fall and people think it's ok they will go back up again.
Dubai IS the real estate DOT COM BUBBLE it's been said before and should be said again. Prices don't always come back, Emaar is NO google
It's OVER and will be probably for ever. Too many people have been burnt and prices are still too high for anyone with any real sense to get involved.
WE will look back on the last few years and wonder, not went wrong thats clear, greed and stupidity, but just WTF were we ever thinking ?
I heard on another site a bloke had a cash buyer for his place over OP. He said he will "hang on" HELLO if someone offers u more NOW than u paid for it SELL.
This physcologly is why ordinary people should not buy shares, they go up people feel rich, they fall and people think it's ok they will go back up again.
Dubai IS the real estate DOT COM BUBBLE it's been said before and should be said again. Prices don't always come back, Emaar is NO google
In 15-20 years time, there will be another generation of buyers, blinded by greed and profit, eager to tell anyone that questions their investment decisions as 'but this time, it will be different'.
Investments are cyclical. Have been for 300 years. Always will be.
May 2nd 2009, 12:19 pm
#48
Forum Regular
Joined: Nov 2008
Posts: 53
Re: Dubai house price crash - 41% in Q1 2009
You trust too much in people having common sense.
In 15-20 years time, there will be another generation of buyers, blinded by greed and profit, eager to tell anyone that questions their investment decisions as 'but this time, it will be different'.
Investments are cyclical. Have been for 300 years. Always will be.
In 15-20 years time, there will be another generation of buyers, blinded by greed and profit, eager to tell anyone that questions their investment decisions as 'but this time, it will be different'.
Investments are cyclical. Have been for 300 years. Always will be.
It reminded me that Dubai actually did try and do things right. They established freezones and they seemed to make a genuine effort to become a business hub for the middle east. And to be fair they made a pretty good go of it. If I HAD to do business in the Middles east Dubai is the place that I would HAVE chosen to do it.
The problem was they were rather like icarus, they flew too high.
To my mind rents going out of control more than anything put a nail in the business coffin of Dubai. It was proving far too expensive to rent offices, then house the staff required. People were catching on, 40 grand tax free in the UK sounds bloody great but when half your earnings went on rent then to my mind thats 50% taxation and that's before you EAT.
Many people have said and I tend to agree that this bust is the best thing that happened to Dubai. I don't wish to see people lose money but those who invested for the wrong reasons (to flip and profit) probably deserve to lose a bit of money as essentially they are kind of responsibly for their own wealth destruction.
The future of Dubai should be dirt cheap rent for both offices AND homes. This way companies can be sure that if they open here not only will they be able to attract staff (who won't automatically be put off by high rents) but they might also be able to actually make a profit.
I think with the current real-estate bust we have forgotten that Dubai did have the right attitude they perhaps went about it the wrong way.
Now obviously they still had a LONG way to go in making things right (construction workers) and they tended to believe their own spin but if they survive this then it's fair to say that with so MUCH property coming on line Dubai could,......COULD actually become the City it aspired to be, all be it in a less grand scale. If they now concentrate on infrastructure and that means schools and hospitals not some stupid 6 runway airport then Dubai could have a chance.
The problem is will Dubai's ego get the better of it again ?
We shall see.
Last edited by Qataruser; May 2nd 2009 at 12:22 pm.
May 2nd 2009, 4:19 pm
#49
Joined: May 2007
Posts: 317
Re: Dubai house price crash - 41% in Q1 2009
To my mind rents going out of control more than anything put a nail in the business coffin of Dubai. It was proving far too expensive to rent offices, then house the staff required. People were catching on, 40 grand tax free in the UK sounds bloody great but when half your earnings went on rent then to my mind thats 50% taxation and that's before you EAT.
40 grand tax free in the UK sounds bloody great but when half your earnings went on rent then to my mind thats 50% taxation and that's before you EAT
May 3rd 2009, 12:35 am
#50
Forum Regular
Joined: Nov 2008
Posts: 53
Re: Dubai house price crash - 41% in Q1 2009
Qatar on the other hand made absolutely no moves what so ever to attract businesses. There are no free zones. The sponsorship 51% rule still applies. There are a few exceptions, for example you can 100% own your own business if it's in tourism for example. This does not seem to have had any effect at all.
Instead the government has insisted on enormous vanity projects like a new airport (sound familiar) education "cities" and of course the ubiquitous towers.
Before the "crash" it had become very apparent that Qatar was NOT bringing in the numbers of well paid ex-pats needed to sustain the "boom times". Reports of rocketing GDP painted a completely false picture of life on the ground. The locals and those in charge were "feeling" richer and it made everyone else feel richer, but it was only a feeling.
We the ex-pats were rather left out of the boom, some, a minority, secured well paid construction or Oill/Gas jobs. The rest the LARGE majority of Indians, Arabs and Filipinos continued to be paid a pittance.
Real estate in Qatar was sold on the prospect of the previously rocketing rents. I was told I could expect 216,000 Dhs a year for a two bed flat !
This was the only way they could justify the sky high prices.1 bed Pearl apartments are still going for 1.8 million.
It was unsustainable, I realised it one afternoon. I was in a local shopping mall, it was packed. A good sign, but the faces bothered me, now this may sound a little prejudiced, but where were the white faces ?
I am led to believe that Western Europeans, Americans and Aus/NZ South Africans and the like are the best paid people in the Gulf. Not because they are the best or even the most highly skilled or hard working I am sure we would all agree we probably aren't no we are paid highly because of the discrimination we all like to kinda brush under the carpet.
Anyway, where were they? where were all the people willing to pay such a high price for my apartment ? Then I saw a family, a white family they had 2 kids, they weren't going to want a poky 2 bed flat, they were villa people.
Then I panicked, I suddenly realised that I had been sold a pup, other indicators were also there, private businesses were conspicuous by their absence in Qatar. Everyone you spoke to worked in a few familiar industries Construction, Oil/Gas, teaching or the airline. Everyone relied on everyone else, a self fulfilling circle of interdependence. Not the way to grow your economy and not the way to diversify.
So I sold up in June last and became a hated flipper. I make no apologies, I intended to live in the place and use the housing allowance to pay the mortgage.
Of course that was before the final nail in the Qatar property coffin was firmly nailed in. The quality and size of the apartment was beyond a joke. It was a disgrace, and for the money I had paid it was insulting and so disappointing I was furious.
Whatever your worst Dubai development is I doubt it would be quite as bad as I the place I invested in.
So to cut a long story short the combination of wrong demographics, over priced rubbish and private sector overbuilding have killed the Qatar market. And don't just take my word for it (even though I have advised people to sell since June last year) read this:
Property prices in Qatar have plunged by up to 70% since the peak of the market in September 2008, due to the global financial crisis, according to a survey conducted by Aswaq.net of Al Arabiya television.
The research, which uses price data supplied by a number of property agents, reveals that the price of land allocated for construction of villas in Doha fell by around 50%, while the actual prices of villas in the capital tumbled by almost 35%. Outrside of the capital, villa prices typically fell by 65% to 70%.
Property agents told Aswaq.net that the Qatar property market is witnessing an unprecedented state of stagnation, following the outbreak of the global financial crisis.
I hate to say I told you so but it was obvious to all you just had to take the blinkers off.
Dubai and Qatar rose on the same tide, sadly went the tide went out Qatar was washed away.
Last edited by Qataruser; May 3rd 2009 at 12:45 am.
May 3rd 2009, 5:19 am
#51
Excess Baggage
Joined: Jul 2006
Location: UK
Posts: 5,479
Re: Dubai house price crash - 41% in Q1 2009
As for Qatar. Well you think the property market is bad in Dubai, let me tell you about Qatar. In Dubai is you reduce your price enough I am sure you will find a buyer. I am sure Dubai has some sort of future as a business hub, as I say once the City is cheap people MIGHT reconsider the city as a base.
Qatar on the other hand made absolutely no moves what so ever to attract businesses. There are no free zones. The sponsorship 51% rule still applies. There are a few exceptions, for example you can 100% own your own business if it's in tourism for example. This does not seem to have had any effect at all.
Instead the government has insisted on enormous vanity projects like a new airport (sound familiar) education "cities" and of course the ubiquitous towers.
Before the "crash" it had become very apparent that Qatar was NOT bringing in the numbers of well paid ex-pats needed to sustain the "boom times". Reports of rocketing GDP painted a completely false picture of life on the ground. The locals and those in charge were "feeling" richer and it made everyone else feel richer, but it was only a feeling.
We the ex-pats were rather left out of the boom, some, a minority, secured well paid construction or Oill/Gas jobs. The rest the LARGE majority of Indians, Arabs and Filipinos continued to be paid a pittance.
Real estate in Qatar was sold on the prospect of the previously rocketing rents. I was told I could expect 216,000 Dhs a year for a two bed flat !
This was the only way they could justify the sky high prices.1 bed Pearl apartments are still going for 1.8 million.
It was unsustainable, I realised it one afternoon. I was in a local shopping mall, it was packed. A good sign, but the faces bothered me, now this may sound a little prejudiced, but where were the white faces ?
I am led to believe that Western Europeans, Americans and Aus/NZ South Africans and the like are the best paid people in the Gulf. Not because they are the best or even the most highly skilled or hard working I am sure we would all agree we probably aren't no we are paid highly because of the discrimination we all like to kinda brush under the carpet.
Anyway, where were they? where were all the people willing to pay such a high price for my apartment ? Then I saw a family, a white family they had 2 kids, they weren't going to want a poky 2 bed flat, they were villa people.
Then I panicked, I suddenly realised that I had been sold a pup, other indicators were also there, private businesses were conspicuous by their absence in Qatar. Everyone you spoke to worked in a few familiar industries Construction, Oil/Gas, teaching or the airline. Everyone relied on everyone else, a self fulfilling circle of interdependence. Not the way to grow your economy and not the way to diversify.
So I sold up in June last and became a hated flipper. I make no apologies, I intended to live in the place and use the housing allowance to pay the mortgage.
Of course that was before the final nail in the Qatar property coffin was firmly nailed in. The quality and size of the apartment was beyond a joke. It was a disgrace, and for the money I had paid it was insulting and so disappointing I was furious.
Whatever your worst Dubai development is I doubt it would be quite as bad as I the place I invested in.
So to cut a long story short the combination of wrong demographics, over priced rubbish and private sector overbuilding have killed the Qatar market. And don't just take my word for it (even though I have advised people to sell since June last year) read this:
Property prices in Qatar have plunged by up to 70% since the peak of the market in September 2008, due to the global financial crisis, according to a survey conducted by Aswaq.net of Al Arabiya television.
The research, which uses price data supplied by a number of property agents, reveals that the price of land allocated for construction of villas in Doha fell by around 50%, while the actual prices of villas in the capital tumbled by almost 35%. Outrside of the capital, villa prices typically fell by 65% to 70%.
Property agents told Aswaq.net that the Qatar property market is witnessing an unprecedented state of stagnation, following the outbreak of the global financial crisis.
I hate to say I told you so but it was obvious to all you just had to take the blinkers off.
Dubai and Qatar rose on the same tide, sadly went the tide went out Qatar was washed away.
Qatar on the other hand made absolutely no moves what so ever to attract businesses. There are no free zones. The sponsorship 51% rule still applies. There are a few exceptions, for example you can 100% own your own business if it's in tourism for example. This does not seem to have had any effect at all.
Instead the government has insisted on enormous vanity projects like a new airport (sound familiar) education "cities" and of course the ubiquitous towers.
Before the "crash" it had become very apparent that Qatar was NOT bringing in the numbers of well paid ex-pats needed to sustain the "boom times". Reports of rocketing GDP painted a completely false picture of life on the ground. The locals and those in charge were "feeling" richer and it made everyone else feel richer, but it was only a feeling.
We the ex-pats were rather left out of the boom, some, a minority, secured well paid construction or Oill/Gas jobs. The rest the LARGE majority of Indians, Arabs and Filipinos continued to be paid a pittance.
Real estate in Qatar was sold on the prospect of the previously rocketing rents. I was told I could expect 216,000 Dhs a year for a two bed flat !
This was the only way they could justify the sky high prices.1 bed Pearl apartments are still going for 1.8 million.
It was unsustainable, I realised it one afternoon. I was in a local shopping mall, it was packed. A good sign, but the faces bothered me, now this may sound a little prejudiced, but where were the white faces ?
I am led to believe that Western Europeans, Americans and Aus/NZ South Africans and the like are the best paid people in the Gulf. Not because they are the best or even the most highly skilled or hard working I am sure we would all agree we probably aren't no we are paid highly because of the discrimination we all like to kinda brush under the carpet.
Anyway, where were they? where were all the people willing to pay such a high price for my apartment ? Then I saw a family, a white family they had 2 kids, they weren't going to want a poky 2 bed flat, they were villa people.
Then I panicked, I suddenly realised that I had been sold a pup, other indicators were also there, private businesses were conspicuous by their absence in Qatar. Everyone you spoke to worked in a few familiar industries Construction, Oil/Gas, teaching or the airline. Everyone relied on everyone else, a self fulfilling circle of interdependence. Not the way to grow your economy and not the way to diversify.
So I sold up in June last and became a hated flipper. I make no apologies, I intended to live in the place and use the housing allowance to pay the mortgage.
Of course that was before the final nail in the Qatar property coffin was firmly nailed in. The quality and size of the apartment was beyond a joke. It was a disgrace, and for the money I had paid it was insulting and so disappointing I was furious.
Whatever your worst Dubai development is I doubt it would be quite as bad as I the place I invested in.
So to cut a long story short the combination of wrong demographics, over priced rubbish and private sector overbuilding have killed the Qatar market. And don't just take my word for it (even though I have advised people to sell since June last year) read this:
Property prices in Qatar have plunged by up to 70% since the peak of the market in September 2008, due to the global financial crisis, according to a survey conducted by Aswaq.net of Al Arabiya television.
The research, which uses price data supplied by a number of property agents, reveals that the price of land allocated for construction of villas in Doha fell by around 50%, while the actual prices of villas in the capital tumbled by almost 35%. Outrside of the capital, villa prices typically fell by 65% to 70%.
Property agents told Aswaq.net that the Qatar property market is witnessing an unprecedented state of stagnation, following the outbreak of the global financial crisis.
I hate to say I told you so but it was obvious to all you just had to take the blinkers off.
Dubai and Qatar rose on the same tide, sadly went the tide went out Qatar was washed away.
May 3rd 2009, 11:08 am
#52
Forum Regular
Joined: Nov 2008
Posts: 53
Re: Dubai house price crash - 41% in Q1 2009
Just don't buy property here and you will be fine, Qatar has an interesting future ahead of it. The problem is it might be interesting the the "car crash" sense.
May 3rd 2009, 11:19 am
#53
Excess Baggage
Joined: Jul 2006
Location: UK
Posts: 5,479
Re: Dubai house price crash - 41% in Q1 2009
Car crash...Freudian slip or what?
Did you hear about that government minister getting wiped out by idiots racing in Land Cruisers?
Did you hear about that government minister getting wiped out by idiots racing in Land Cruisers?
May 3rd 2009, 11:27 am
#54
Forum Regular
Joined: Nov 2008
Posts: 53
Re: Dubai house price crash - 41% in Q1 2009
May 4th 2009, 4:55 am
#56
Remember
Joined: Oct 2003
Location: The Land of Sindbad
Posts: 1,275
Re: Dubai house price crash - 41% in Q1 2009
In the papers here it said the Minister was hit by a car going in the opposite direction. What it didn't clarify is which car was going in the wrong direction!
May 4th 2009, 7:18 am
#57
Forum Regular
Joined: Nov 2008
Posts: 53
Re: Dubai house price crash - 41% in Q1 2009
That's a good point. Perhaps the sheik was in a hurry and hit the other guy. Would not surprise me in the least.
