LeicesterKid

I think things are much worse than what they say in Gulf News as per link below:

http://www.khaleejtimes.com/DisplayA...on=theuae&col=


LK.

lionheart

Nothing new there. I think we all know that supply will soon vastly exceed demand and that property values in Dubai will fall accordingly.

Charismatic

+ 1

IndieG

I think analysts here are too scared to tell it as it is and fear upsetting the powers that be....

The reports are vague and talk of a potential fall in a couple of years while the downturn is already staring in their face. Morgan Stanley recently issued a report and Union Properties threatened to sue the analyst because he said property prices are expected to fall by 10% in 2010!

Here is another interesting article:
http://www.ft.com/cms/s/0/0f8672f6-8...nclick_check=1

Confucius

And why isn't MS suing UP???

IndieG

why should they?

And I like your old avi much better....lol

Lyds

Sorry, but there's a fundamental flaw here... there IS a huge surplus of accommodation, it's just that landlords are not releasing them in order to drive up rents. There are entire towers in JBR that are finished, and yet unoccupied. It's time that the government actually looked into the problem a bit more deeply than just chucking out more residential investment opportunities for investors to sit on.

The only way prices will come down is when they get too expensive to attract us ex-pats to come over. At current increase rates, I'd give it until the end of the year before we see the maths no longer adding up.

Confucius

Because UP has threatenned to sue them...
They should reciprocate...
And thank you...

busybee2

have you noticed in gulf news properties today, ads saying reduced for quick sale or negotiatable etc, first time seen that.

Lyds

yes, the general feeling is that this place has shot itself in the foot and we're just waiting for the pain to hit home!

We've just moved over here and were foolish enough to not ask for an inflated salary to allow for rental increases. Rents are going up by about 5-10k AED each week here and if we were to run the maths now, we probably wouldn't have made the move.

I've made it a mission to tell that to all the landlords/estate agents and have happily seen a few worried looks flicker across their faces!

The thing is that they are building upon speculation... most of the ex-pats here are employed in the construction industry and will leave when the building program is over. Once we go, who will fill all these hundreds of thousands of units? Tourists? No... and they know it. They're in a vicious circle where they need to keep building to keep us here and keep the economy going.

Charismatic

Well it'll be good news for those who have been saving their pocket money, place on the palm? I've always wondered though, what is the construction quality like on those high rises and what is the expected lifespan of the buildings would be?

Low paid labor + Rapid construction + No occupancy = ...Timebomb?

Mind you, we're in danger of violating the Noah rule of investing: Predicting rain doesn't count, building Arks does.

So who's going to short Dubai construction and real estate investment companies first?

Lyds

hmmm... let me see... timespan = until someone gets bored of the sight of it!

We stayed in the Oasis Beach Hotel back in May... 10 years old, 4* hotel - really nice... hmm, they're demolishing it this year to make way for a 120 storey hotel apartment tower.

Heard about the compulsory purchasing in the Springs to widen the already 4-lane highway?

Construction quality is fair - you can't mess about when you're building towers, but it'll be the cladding and finishes that age first. They'll all look dated in 25-30 years anyway... and Dubai doesn't do dated.

I'd be more worried about:
building without purpose -> unsustainable communities -> reason for occupancy leaves -> community leaves -> management stop overheads -> grounds and building fall into disrepair -> buildings return to desert

busybee2

i remember the oasis beach hotel when you could see the sea one way and the SZR the other, now there is a big man made 'water hole' and 'gotham city' in its way

Thunderbirds Are Go

What is the compulsory purchasing in springs?

IndieG

The purchase of villas that are in the way of the proposed six lane highway cutting through the development.