ceres

So we are still toying with buying a villa.
Do you think the recent activity in the market is a 'dead cats bounce' and prices will continue to fall next year, by up to 30% as indicated by some. Or has it hit the bottom and starting to level out? Any insight much appreciated.
Thanks

ceres

Sorry new to BE, what does it mean when it say's moved next to my thread. Moved where?

Thanks

The Dean

It's been moved here.................

On a wider scale, I am astonished at the optimism now flooding back into the global economy. “Green shoots”? We should already be seeing fully grown forests, if some of the respected economic analysts and commentators are to be believed.

Dubai is different though in one important respect – it was always built on the assumption that ‘if you think it’s good today, it will be even better tomorrow’, and it always relied on its ability to attract external capital investment.

But the world is a changed place, and many have had their fingers badly burned in Dubai and will not wish to get involved again.

I would look at property purchase from a purely practical point of view: if you are likely to be staying in Dubai for many years (difficult to predict that these days, I know), then buying is a reasonable alternative to throwing money down the drain (i.e. renting). If I were only planning a short-term stay there (say, no more than three years), I would rather be struck by lightning than buy a place.

ceres

Thanks for the input. Yes we are here long term and like you have said the prospect of bending over while landlord stuffs it up us is most unappealing.LOL

The whispers I have heard, is that Dubai government has given money to a group of wealthy AD business men, to snap up their glorified mud huts, then put them back on the market at inflated prices, in the hope that investors will return, cheque books in hand. Not according to the agents mind you, but then again, If they told me the sun was shinning, I would still go and check....born bull-shitters, the lot of them!

The Dean

The Dubai Government has given them money?

The Dubai Government hasn't any money, which is why Ab Dab is not so subtly bailing Dubai out behind the scenes. Look at the wafer-thin attempts by Dubai to convince the international capital markets that bonds maturing in the next year or two will be redeemed in full.............

BurpusMe

It depends on why you are buying.
If it's for an investment, you need to ask yourself some questions.

JP Morgan reported 30,000+ units are about to enter the Dubai market. It's safe to assume that a big chunk of that will be rental stock. What kind of impact do you think that will have on the rental market? And the resale market? Will 2010 see growth in local tourism, trade & shipping revenues? If not, what effect will this have on your property value? Will Dubai see a second wave of expat settlers in 2010? Will Dubai introduce tax?

I love Dubai, and I believe it has the required ingredients for recovery - but the big question is when will it happen!

Why not wait for some positive signs before jumping into the market?

ceres

As I said it was whispers, so perhaps I picked it up wrong. I was aware that AD was bailing Dubai out.......

Who knows what is really going on. Tiz a cover up on a grand scale me's thinks

Danajj

FYI - some links that might be useful - I'd take the advice of sitting tight just now, rent for a year - and possibly look next year if said 'green shoots' start to grow.

http://www.economist.com/businessfin...ry_id=13186145

http://www.propertycommunity.com/property-in-dubai.html

Danajj

Oh - and also - a quick rule of thumb I go along with is that if the banks are holding off investing still and waiting to see what happens - joe public should follow suit.

ceres

Thanks everyone. I appreciate your take on things.

Tooterelli

http://www.housepricecrash.co.uk/for...howtopic=33755

typical

That's not really a very good thread. Not much depth in there at all. (And I speak as someone who posted to it...)

It's a shame that thread on here was "allowed" to die. T'was very interesting.