Property drops 45%
Jan 6th 2009, 12:59 pm
#1
Concierge
Thread Starter
Joined: Feb 2007
Posts: 29,625
Property drops 45%
http://www.arabianbusiness.com/54263...l-estate-slump
I can't find my original post from a few weeks back, but I said that an Economist friend of mine predicted a 40% drop in property prices. Looks like he was right.
I can't find my original post from a few weeks back, but I said that an Economist friend of mine predicted a 40% drop in property prices. Looks like he was right.
Jan 6th 2009, 1:16 pm
#2
If I have to explain...
Joined: Sep 2008
Location: Where ever the road takes me
Posts: 3,999
Re: Property drops 45%
Nah, that's a misprint. It should say property drops 45 degrees
....caused by subsidence on the palm.
....caused by subsidence on the palm.
Jan 6th 2009, 2:25 pm
#3
Lost in BE Cyberspace
Joined: Sep 2006
Posts: 18,187
Re: Property drops 45%
http://www.arabianbusiness.com/54263...l-estate-slump
I can't find my original post from a few weeks back, but I said that an Economist friend of mine predicted a 40% drop in property prices. Looks like he was right.
I can't find my original post from a few weeks back, but I said that an Economist friend of mine predicted a 40% drop in property prices. Looks like he was right.
http://britishexpats.com/forum/showp...0&postcount=39
MM, xx
Jan 6th 2009, 2:28 pm
#5
Concierge
Thread Starter
Joined: Feb 2007
Posts: 29,625
Re: Property drops 45%
Jan 6th 2009, 2:44 pm
#6
BE Forum Addict
Joined: Apr 2005
Location: Melbourne
Posts: 4,553
Re: Property drops 45%
The same article also mentions a 50% fall in some places... fact is despite this fall there are still no buyers. Checked with our mortgage unit, apparently business (sourcing and approval) is down 80%....so that's quite grim.
Jan 16th 2009, 8:57 pm
#7
Just Joined
Joined: Nov 2008
Posts: 2
Re: Property drops 45%
Now, who of you is a real estate agent in Dubai and wants to explore new ways to address the current market condition? I am looking to team up with a broker to contribute my expertise (IT, amongst others). I have concrete plans, but need local experience. Leave a comment, or send me a private message if you like.
Jan 17th 2009, 3:22 am
#8
banned
Joined: Oct 2008
Posts: 7,611
Re: Property drops 45%
Ground control to major tom...
Jan 17th 2009, 4:35 am
#9
BE Enthusiast
Joined: Apr 2005
Posts: 677
Re: Property drops 45%
The trickiest prediction in a recession is knowing when the bottom will occur and at what level. Has anyone read any credible attempts to predict this?
Jan 17th 2009, 6:36 am
#10
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Joined: Aug 2004
Location: Dubai
Posts: 2,082
Re: Property drops 45%
Anyone established the 'peak day' for property in dubai? or peak month?
Feel for anoyone who finally succumbed and jumped on the property market then.
Last edited by Jeeper; Jan 17th 2009 at 6:38 am.
Jan 17th 2009, 8:40 am
#11
Forum Regular
Joined: Oct 2008
Posts: 122
Re: Property drops 45%
Am going to give my opinion which might be difficult for some to accept.
I have invested in Abu Dhabi and Ajman. Both long term investments.
I am in the property field and i actually think what is going on in terms of correction is healthy for the market.
Prices are coming down to what its suppose to be. Speculators raised them to unbelievable levels.... beyond imagination.... this is all fake.... properties were changing hands and prices rose without any acceptable market condition.
Now the prices will drop to acceptable levels...... this is the down cycle.
More regulations are enterin the market, .... abit late, infact very late.... but again this is positive ... it was a zoo out there.
I still believe in the UAE dream.... people will still want to live here. Companies in this country serve the world not just uae.... so there is still demand for manufacturing, exporting, ....etc
Construction at the moment is slow.... but when prices drop to an acceptable level.... people will fill those aprtments ...either through buying or renting.
The country is maturing thats all.... it grew too fast,... now it has to correct itself.... ... grow slowly like everyone else.
Inv.
I have invested in Abu Dhabi and Ajman. Both long term investments.
I am in the property field and i actually think what is going on in terms of correction is healthy for the market.
Prices are coming down to what its suppose to be. Speculators raised them to unbelievable levels.... beyond imagination.... this is all fake.... properties were changing hands and prices rose without any acceptable market condition.
Now the prices will drop to acceptable levels...... this is the down cycle.
More regulations are enterin the market, .... abit late, infact very late.... but again this is positive ... it was a zoo out there.
I still believe in the UAE dream.... people will still want to live here. Companies in this country serve the world not just uae.... so there is still demand for manufacturing, exporting, ....etc
Construction at the moment is slow.... but when prices drop to an acceptable level.... people will fill those aprtments ...either through buying or renting.
The country is maturing thats all.... it grew too fast,... now it has to correct itself.... ... grow slowly like everyone else.
Inv.
Jan 17th 2009, 9:06 am
#12
BE Forum Addict
Joined: Apr 2005
Location: Melbourne
Posts: 4,553
Re: Property drops 45%
Jeeper feels for you too....
Jan 17th 2009, 9:50 am
#13
Account Closed
Joined: Oct 2008
Posts: 2,502
Re: Property drops 45%
Dude, there is going to be a remarkable oversupply of office spaces and villas that will last for a long time. How long, I don't know, but it will be longer than many people would like.
The sudden economic collapse is becoming very obvious every day. Until two weeks ago I never had anyone come to the door of my villa, looking for work as maids or gardeners, now it's happening almost daily.
Traffic is improving-because many people have left and the construction buses shuttling labourers and causing bottlenecks at intersections have shrunk in numbers.
Hey, I'm not eager to see this collapse happen, because my job will eventually be on the line if it gets much worse (which it probably will). But Dubai is changing into a very different place than it was a few months ago, and will not recover for possibly at least a decade.
The sudden economic collapse is becoming very obvious every day. Until two weeks ago I never had anyone come to the door of my villa, looking for work as maids or gardeners, now it's happening almost daily.
Traffic is improving-because many people have left and the construction buses shuttling labourers and causing bottlenecks at intersections have shrunk in numbers.
Hey, I'm not eager to see this collapse happen, because my job will eventually be on the line if it gets much worse (which it probably will). But Dubai is changing into a very different place than it was a few months ago, and will not recover for possibly at least a decade.
Am going to give my opinion which might be difficult for some to accept.
I have invested in Abu Dhabi and Ajman. Both long term investments.
I am in the property field and i actually think what is going on in terms of correction is healthy for the market.
Prices are coming down to what its suppose to be. Speculators raised them to unbelievable levels.... beyond imagination.... this is all fake.... properties were changing hands and prices rose without any acceptable market condition.
Now the prices will drop to acceptable levels...... this is the down cycle.
More regulations are enterin the market, .... abit late, infact very late.... but again this is positive ... it was a zoo out there.
I still believe in the UAE dream.... people will still want to live here. Companies in this country serve the world not just uae.... so there is still demand for manufacturing, exporting, ....etc
Construction at the moment is slow.... but when prices drop to an acceptable level.... people will fill those aprtments ...either through buying or renting.
The country is maturing thats all.... it grew too fast,... now it has to correct itself.... ... grow slowly like everyone else.
Inv.
I have invested in Abu Dhabi and Ajman. Both long term investments.
I am in the property field and i actually think what is going on in terms of correction is healthy for the market.
Prices are coming down to what its suppose to be. Speculators raised them to unbelievable levels.... beyond imagination.... this is all fake.... properties were changing hands and prices rose without any acceptable market condition.
Now the prices will drop to acceptable levels...... this is the down cycle.
More regulations are enterin the market, .... abit late, infact very late.... but again this is positive ... it was a zoo out there.
I still believe in the UAE dream.... people will still want to live here. Companies in this country serve the world not just uae.... so there is still demand for manufacturing, exporting, ....etc
Construction at the moment is slow.... but when prices drop to an acceptable level.... people will fill those aprtments ...either through buying or renting.
The country is maturing thats all.... it grew too fast,... now it has to correct itself.... ... grow slowly like everyone else.
Inv.
Jan 17th 2009, 10:26 am
#14
Forum Regular
Joined: Jan 2008
Posts: 197
Re: Property drops 45%
In relation to the bottoming of the market, a couple of credible market analysts on the buisness daily radio programme in the morning and both were forcasting for the DFX to bottom out at around 800\900 mark...this was around 4 weeks ago..currently the DFX is at around the 1600 mark.
On a slightly different note It will be interesting to see what impact the expiry of the short selling restrictions in the uk has on these falling markets...
Tough times ahaed for sure...
On a slightly different note It will be interesting to see what impact the expiry of the short selling restrictions in the uk has on these falling markets...
Tough times ahaed for sure...
Jan 17th 2009, 10:32 am
#15
BE Forum Addict
Joined: Apr 2005
Location: Melbourne
Posts: 4,553
Re: Property drops 45%
Am going to give my opinion which might be difficult for some to accept.
I have invested in Abu Dhabi and Ajman. Both long term investments.
I am in the property field and i actually think what is going on in terms of correction is healthy for the market.
Prices are coming down to what its suppose to be. Speculators raised them to unbelievable levels.... beyond imagination.... this is all fake.... properties were changing hands and prices rose without any acceptable market condition.
Now the prices will drop to acceptable levels...... this is the down cycle.
More regulations are enterin the market, .... abit late, infact very late.... but again this is positive ... it was a zoo out there.
I still believe in the UAE dream.... people will still want to live here. Companies in this country serve the world not just uae.... so there is still demand for manufacturing, exporting, ....etc
Construction at the moment is slow.... but when prices drop to an acceptable level.... people will fill those aprtments ...either through buying or renting.
The country is maturing thats all.... it grew too fast,... now it has to correct itself.... ... grow slowly like everyone else.
Inv.
I have invested in Abu Dhabi and Ajman. Both long term investments.
I am in the property field and i actually think what is going on in terms of correction is healthy for the market.
Prices are coming down to what its suppose to be. Speculators raised them to unbelievable levels.... beyond imagination.... this is all fake.... properties were changing hands and prices rose without any acceptable market condition.
Now the prices will drop to acceptable levels...... this is the down cycle.
More regulations are enterin the market, .... abit late, infact very late.... but again this is positive ... it was a zoo out there.
I still believe in the UAE dream.... people will still want to live here. Companies in this country serve the world not just uae.... so there is still demand for manufacturing, exporting, ....etc
Construction at the moment is slow.... but when prices drop to an acceptable level.... people will fill those aprtments ...either through buying or renting.
The country is maturing thats all.... it grew too fast,... now it has to correct itself.... ... grow slowly like everyone else.
Inv.
Let me attempt to rewrite your post the way I see it:
Am going to give my opinion which might be difficult for you to accept.
Prices are coming down and a further 60% drop will make it go to where it's supposed to be . Speculators, actively helped by developers, raised them to unbelievable levels.... beyond imagination.... this is all fake.... properties were changing hands and prices rose without any acceptable market condition.
Now the prices will drop to acceptable levels...... this is the crash cycle.
More regulations are enterin the market, .... a bit late, infact very late.... but again in fact very very late ... it is still a zoo out there.
I believed in the UAE dream think it's time I wake up now.... people will still want to live here, if they can keep their jobs that is.
Construction at the moment has stopped.... but when prices drop a further 60%.... people may live in those apartments ...either through buying or renting, that is if banks lend to them..