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IMF warns Dubai about another property bubble...

IMF warns Dubai about another property bubble...

Old Jul 31st 2013, 11:00 am
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Default IMF warns Dubai about another property bubble...

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
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Old Jul 31st 2013, 11:08 am
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Default Re: IMF warns Dubai about another property bubble...

No shit sherlock - as they say.
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Old Jul 31st 2013, 11:14 am
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Default Re: IMF warns Dubai about another property bubble...

Am so glad that this isn't my home forever.
It'll make a beautiful ruins one day
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Old Jul 31st 2013, 1:03 pm
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Default Re: IMF warns Dubai about another property bubble...

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
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Old Jul 31st 2013, 1:43 pm
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Default Re: IMF warns Dubai about another property bubble...

Wasn't somebody on here thinking of buying a villa in Arabian Ranches or thereabouts?
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Old Jul 31st 2013, 2:18 pm
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Default Re: IMF warns Dubai about another property bubble...

What would the price of say a 1400square feet 2 bedroom condo cost in a development with all facilities??
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Old Jul 31st 2013, 3:10 pm
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Default Re: IMF warns Dubai about another property bubble...

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.
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Old Jul 31st 2013, 3:10 pm
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Default Re: IMF warns Dubai about another property bubble...

Originally Posted by ex reg View Post
What would the price of say a 1400square feet 2 bedroom condo cost in a development with all facilities??
2m AED -- maybe
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Old Jul 31st 2013, 3:11 pm
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Default Re: IMF warns Dubai about another property bubble...

Originally Posted by shiva View Post
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
I agree with you. The bull run really only started 9/12 months ago. It's early days yet.
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Old Jul 31st 2013, 3:35 pm
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Default Re: IMF warns Dubai about another property bubble...

Bring it on,
this time I am in a recession proof industry inshallah and I am already eyeing up Saheel
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Old Jul 31st 2013, 9:50 pm
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Default Re: IMF warns Dubai about another property bubble...

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.
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Old Jul 31st 2013, 11:51 pm
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Default Re: IMF warns Dubai about another property bubble...

just got rid of ours, never again!! absolute nightmare of owning property here is over!
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Old Aug 1st 2013, 3:10 am
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Default Re: IMF warns Dubai about another property bubble...

Originally Posted by Autonomy View Post
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
"........... 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).
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Old Aug 1st 2013, 4:40 am
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Default Re: IMF warns Dubai about another property bubble...

Originally Posted by sophia6396 View Post
just got rid of ours, never again!! absolute nightmare of owning property here is over!
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.
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Old Aug 1st 2013, 5:50 am
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Default Re: IMF warns Dubai about another property bubble...

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