"Dubai’s glittering skyline may look great in the brochures, but many British homebuyers regret their decision to invest there."
"McWhan’s desert dream has turned to dust. The 44-year-old from Islington, north London, and his wife, Marie, bought an off-plan flat in the Waves development in Dubai Marina two and a half years ago for £127,000. The developer, Damac, said it would be ready last May. It is still not finished."
"Residents in Dubai Marina are embroiled in Dubai’s first service-charge strike, refusing to pay the full amount because, they say, developer Emaar has hiked fees by 30%"
As a resident in Dubai was interesting to read the article. I think most of the comments on this site are positive as the majority have bought in a middle of the range project. Ie paying 50kGBP for a 1 bed apartment. However if I paid 127K my expectations would be a lot higher. Dubai does have a reputation for shabby building work as most developers simply take on too much. In addition if I had invested so much in an apartment I would be relying on the rental return and would be very upset if I missed a years rent. Average for a 1 bed at the Marina - 11kGBP. The maintenance fees are already outrageous, starting around 2,300GBP. Therefore I personally feel that IC is a great investment for Dubai as the quality is good for such a cheap price. There is also more demand for this range of property, resulting in a higher rental return minimum 10%.
I chose Greece as this is the smallest neighbourhood & therefore less built up. It has the school & the park right next to it. Also very close to the lake. It has good access as is very close to Academic Rd entrance. Greece will be the last cluster to be finished (anytime from June to August 2007 are the predections) which obviously gives you longer until the final payment on completion.
I chose Greece as this is the smallest neighbourhood & therefore less built up. It has the school & the park right next to it. Also very close to the lake. It has good access as is very close to Academic Rd entrance. Greece will be the last cluster to be finished (anytime from June to August 2007 are the predections) which obviously gives you longer until the final payment on completion.
I considered Dubai and decided "not for me". I can't imagine myself being confined to an apartment in a tower block surrounded by hundreds of other skyscrapers with an occaasional trip down to the pool which is likely to be filled with screaming youngsters. And for a break? Well you can only shop for just so long...but I suppose you can go and visit friends to share a drink on their balcony looking out at the tower blocks from another perspective! And where do you GO to? Once out of town one dune looks much like another.
Perhaps this is unwise, but I'll say it, nevertheless - am I the only one who feels that Dubai is the No.1 place NOT to buy? Usually, postings tend to add positive balance, but just about every posting here makes me think that the Dubai bubble is going to burst any time now - the message I get is that developers are using deposits to fund a backlog of construction: but this can't go on indefinitely. And that the time is long gone where you can buy to sell at a profit.
Originally posted by msej449: And that the time is long gone where you can buy to sell at a profit.
It's pretty much the same everywhere else for buying now.
Five years ago i purchased a plot of land where i wanted to build in Greece. I had specific requirements for where i wanted to holiday and eventually live out my later years. This cost £18,500 and i also purchased another plot and a run down property for renovation taking my investment to £50,000.
I now have a 3 bed beautiful stone Mani tower valued @ €300,000+ just outside Stoupa. My UK home is now mortgage free.. And i have recouped everything i paid out over the five years and have €20,000 in my Greek account.
I dont earn a huge salary and i go to work and get my hands dirty everyday. I have looked around for somewhere to invest the €20,000 and i dont think i will find anywhere today that gives the same potential return along with the quick get out there was a few years ago as you could but oneday and sell the next and make a profit even with the %10 - %15 buying costs.
Overseas buyers always have different perception than locals who are paying lot of money in rent.
Regards
quote:
Originally posted by msej449: Perhaps this is unwise, but I'll say it, nevertheless - am I the only one who feels that Dubai is the No.1 place NOT to buy? Usually, postings tend to add positive balance, but just about every posting here makes me think that the Dubai bubble is going to burst any time now - the message I get is that developers are using deposits to fund a backlog of construction: but this can't go on indefinitely. And that the time is long gone where you can buy to sell at a profit.
That's my obervation exactly - perceptive people like you got into the market over five years ago and are doing OK now. But look at the other thread above on Dubai - no one is allowed to challenge the merit of putting money down now on yet more unbuilt skyscrapers in the middle of nowhere. Everyone keeps saying how cheap it is compared to elsewhere - so what? It's not what you pay, it's what you sell for that counts, and I can't help thinking that the time to invest in this market ended probably a year or two ago.
I agree and was put off the idea by a client of mine who lives in Dubai. Have you looked at the thread dealing with Property in East Germany yet? Absolutely amazing and the auction catalogues for previous auctions show the prices realised and photos as well. Ryan Air also fly to Altenberg, near Leipzig for 1.58 return in May! (Plus taxes of £15)
I have bought 5 apartments in i/city (1 bedroom) in the past year , and i have a number of others in dubai, 3 in westside 2 in dubai marina, as far as i am concerned dubai is a golden egg!
you always seem to doubt everyones views on dubai, as i have lived there six months of every year during the last ten years i know what i'm talking about!
if i was to sell now, i could be your neighbour & buy 4 houses in shoreham with my proffits! dalster@motorsmart.com '
I'd remind everyone that I started this thread asking people's opinions about whether what I'd heard was borne out by actual experience. What I didn't expect was to be lambasted for even daring to question why there was so much negative press. I'm the first to be sceptical of the press for superficial reporting. But this sort of reaction is exactly what worries me. And I'm definitely not encouraged to invest by the reports that are coming back from the other Dubai thread (take a look). Telling me how much money you'll make and how much you'll enjoy showing it off to me simply doesn't make a very convincing argument.
Location, Location, Location.: The three most important factors in buying property. Remember, your property is only as good as your neighbours.
RE: DUBAI
AFGHANISTAN, EGYPT, ERITREA, IRAN,IRAQ,OMAN,PAKISTAN, SAUDI ARABIA, SOMALIA, SUDAN SYRIA, TURKMENISTAN, UZBEKISTAN, YEMEN, and ETHIOPIA.
All of the above are no further from Dubai than London is from the Costa del Sol. If the price of oil stays high or indeed runs out and no feasible alternative fuel source is available to power a jet engine, well, the above list will be your future tenants/buyers.
I Forgot to mention U.A.E. in the above posting. The wealthiest neighbour of them all.
Did you know that if you took one person from each of the above countries, including U.A.E. and added together their respected GDP per Capita it would still be less than France Belgium and Denmarks combined GDP per capita?
Remember, all this building work in Dubai is to create new wealth after the oil has run out. Talk about Catch 22. When oil has run out or more likely become really expensive, the people who can get to Dubai have no money! (ultimately you are only as good as your Neighbours).
Does anyone know if they have any plans to construct a Uzbekistan Island in the sea? That's the one I want to invest in.
Having said all of the above there is a fast buck to be made out there. (I am jealous, that I didn't get in early enough)But, just keep an eye on GMTV, as soon as presenters start getting freebies, you just know the sales of properties have stalled.
One of the first rule of investing is 'get in early then sell to the last suckers in the queue'. The internet bubble prooved this as did every other investment bubble in history. People invest poorly by waiting for a bandwaggon to appear and then jumping on once its fully loaded - too late.
Such people always imagine the party will just keep going like a magic money making machine.
They think "because money has been made, this will just continue". They base thier decisions on this simplistic premise.
The true investor however spots opportunities before the crowd arrives, makes some money then moves on. He may hold some of his property where rents yields are high given the fact he bought his property at the cheapest possible point (in this case about 6 years ago).
Dubai is now a pure bubble market. No shrewd professional investors have Dubai as a 'buy' now. Once sentiment changes woth pure investment bubble markets (which will happen soon) the market collapses.
Its time to move on to new pastures.
There is massive oversupply which means rents are falling, too few tenants and certainly a dried - up second hand market as there simply isnt enough local / non investment demand and new investor entrants are still buying off - plan, ignoring the second hand market.
Professional investors do well to take due account of 'crowd behaviour'. They recognise a market that is too crowded and every 'shoeshine boy' has made an investment.
When the US stockmarket crashed in 1929, the real investors had gotten out just in time whilst the shoe shine boys lost everything.
"Dubai is one of the latest hotspots .. demand for villas and apartments is expected to soar. Barclays announced last week .. range of mortgages for those looking to buy there ... International businesses including Microsoft and Cisco are arriving, so there is an increasing number of people looking for homes."
Sunday Times 'Property' Section, 7th.May 2006
"In Dubai, another favourite with foreign buyers, there have been gloomy predictions of a glut in property - and perhaps even falling prices - when the latest wave of new flat development comes on stream next year... the international property boom, which spread as interest rates fell, is drawing to a close. Average prices rose 6.6% in the first quarter of this year - against 9.3% a year earlier."
I am inclined to believe the money section, although there is a lot of truth what the property section states.
Thorr is totally correct about investing. The good speculators got into the Dubai market early, made their money and left. The bad speculators are left with property they have paid over the top for. The chance for a quick profit went lin 2004. Unless one intends to invest to rent out then do not invest.
The truth of the Dubai market will be seen in the spring of 2007 when the apartments in the Marina and surrounding areas are delivered. I predict that prices will fall in most areas and rise moderately in those areas which are well located and 'desirable'. However, after 2 years of corrections the market will be stable. There will not be a crash because Dubai is too desirable, well connected and is the future.
Dubai is the Monte Carlo of the Middle East when it comes to property and the Hong Kong when it comes to business. Invest in quality property in quality locations and you will do well in the medium term onwards.
Yet another horror story about Dubai in today's Sunday Times. Plus yet another new thread from someone who has paid a deposit and then get complete silence. The gist of the Sunday Times article is that Dubai is on the edge of a precipice - if they handle the latest scandal well (by the state taking-over construction from a bankrupt developer) then investors will be reassured, and things will stabilise. Alternatively, if this batch of customers lose their hefty deposits, then it could precipitate a panic.
Originally posted by msej449: Yet another horror story about Dubai in today's Sunday Times. Plus yet another new thread from someone who has paid a deposit and then get complete silence. The gist of the Sunday Times article is that Dubai is on the edge of a precipice - if they handle the latest scandal well (by the state taking-over construction from a bankrupt developer) then investors will be reassured, and things will stabilise. Alternatively, if this batch of customers lose their hefty deposits, then it could precipitate a panic.
The whole thing is about to go pop.
Funny how sheeple never realise until its too late. The smart money is already out of Dubai.
Ok, having read the posts on the 'for and against' with regards to buying in Duabi, ive been contemplating for over three months about buying out there. Ive mainly looked at IC as this was in all honesty, one of the the cheapest available. Im mainly looking for a buy to let but some of the articles in the media and confusion on Dubai laws etc have dampened the process. Without trying to sound like i want a yes or no answer...would it still be a 'safe' buy? thanks
