waltair

I read in big letters in an old copy of the Gulf News that "Dubai Real Estate will never fall"

And why would it? Dubai is one of the world's top tourist destinations! This is a luxury, exclusive, one-in-a-lifetime freehold investment opportunity! A fantastic, guaranteed window of opportunity (closing fast) to participate in the INCREDIBLE growth of not only Dubai, but the entire middle east region!

All we need is a little liberalization for the kind of sheesa that I am smoking, and we can not fail.

Maxima

This question may sound stupid but:

Why are rising rents and property prices seen as good for an economy ?

And in a city where probably 95% of property is rented and not bought, why would higher rents lead to increased consumer spending ?

http://www.thenational.ae/thenationa...-economic-news

The positive adjustment is particularly good news for investors, some of whom have seen no return, or have suffered losses, on their property portfolios for several years. Better rental returns for investors should help build confidence across the economy, leading to increased consumer spending.

MAV_DXB

I'm far from qualified to answer this, but at a guess, the quote is referring to the investors - they see a better return (through rising rents), thus more cash in their pocket = more cash to spend.

Regarding the likes of myself who have to pay increased rent, then as per your question, I will have less cash to spend, so, how does that help the economy?

weasel decentral

Its going to depend then on who are the bigger spenders investors or renters. But typically I'd imagine it is always consumer (renter) driven. As consumer confidence always seems to be the driver of western economies.

Meow

There is an expectation that the Central Bank will once again be announcing a limit on LTVs for expats in the UAE. The maximum is currently 15%, but it is expected to be reduced to 25%.

Let's see if it sticks this time...

The Dean

OK I give up - 15% reduced to 25%?? I'm trying to work out what you meant to say......

Meow

Hmm, that is backwards!

Minimum deposit is currently 15% and is expected to change to 25%.

Apologies. I've been writing about domicile and IHT issues most of the day and my brain is scrambled.

Eeyore

In the late summer of 2008, someone very very VERY senior in one of the two main developers in Dubai was quoted in the local papers as saying that the global financial slowdown, which was just started to be acknowledged, would mean that Dubai property prices would skyrocket even further as the rest of the world poured its money into Dubai as a safe haven.

I wish I'd taken a copy of that article at the time. When I went back to look for it again about a year later, with the the local property crash in full swing, I couldn't find it. Funny that.

Maxima

And in October 2008, when the Atlantis was opened with grand fireworks, local media wrote on how it was a sign that the "party is still going on", and that it proved how while the world would grapple with the Lehman after effects, Dubai would move forward

Boomhauer

How is the Atlantis doing financially? Is it mostly booked year round or mostly empty?

Blue Cat

busy but with package deals from other GCC countries, last time I went up there there must have been at 200 Arab women with kids and maids etc in the foyer. That couple of football top wearing Brits you might start to get the picture I did

Blue Cat

But the boss of DAMAC Properties, one of Dubai’s major developers, had little time for such talk. Ziad El Chaar told 7DAYS: “Everyone who wants to have their name in the press these days either talks about Miley Cyrus or the ‘bubble’.”

taken from 7days, are these people for real? global economic recession and he refers to some wannabe pop star tart?

Maxima

http://www.arabianbusiness.com/dubai...ef-522436.html

In this article, the guys from Abu Dhabi and Bahrain reckon Dubai is in a bubble; predictably the ones from Dubai think otherwise


My favorite quote from the 7days piece was

He told delegates: “If there is a real estate problem in India, money comes to Dubai. If there is a problem in Cyprus, Russian money comes to Dubai. If there is a problem in the US, institutional investors come to Dubai. If there is a political crisis or war money comes to Dubai - and this not going to stop so that is why the drivers are sustainable.”

OleJanx

I love the way these guys manage to delude themselves that, not withstanding past experience, it could never happen (again) in Dubai, where all the troublesome money, good and usually bad, comes to rest apparently...

Meow

Does this man believe that Dubai is like Hotel California then?