Help!! I am not sure what to do. Do you think Buying a studio apartment in Dubai Marina is a sound investment or is it too early days yet, would it be better to give it 18 months then look into buying then? Or will i have missed the boat by then? I am planning on putting down a 3k non refundable deposit to Dubai Select for a studio apartment at The Point. With the view to rent out once its built. It sounds to me like most of these places arent built in time. Its costing 75K. Can anyone give me any advice. i am also having to take a mortgage out on my home to but it interest only. I think i should pull out before it goes to far. Help anyone?? I just love the country
[QUOTE]Originally posted by toni5659: Help!! I am not sure what to do. Do you think Buying a studio apartment in Dubai Marina is a sound investment or is it too early days yet...
I considered Dubai at one stage. The time to buy was 2-3 years ago when you picked up MASSIVE apartments for a song. Many have been re-sold for many times their original cost. NOW? Well, from what I have heard from one who was working down there, there is a great deal of overbuilding and you might find selling difficult at a later date.(Estate people skip over this one.) There HAS to be a saturation point. Just LOOK at all those blocks! Many "locals" have bought apartments to rent out as investments, but I gather that they, themselves, are now turn ing to "developments" as living in stnd-alone houses bears a closer relationship to their traditional way of life. Numerous building projects are up to a year behind due to labour problems accofrding to two reports I've read. As a holiday home that might be fine, but I wouldn;t like Dubai as a hoem, or for retirement. I don;t like the idea of the sprawling communal pool filled with youngsters, and the idea of haivng a good ocean view from your balcony fifty floors up might pall after a while. So what do you do? Visit your friends - and look out at the other tower blocks from THEIR balcony? Schlepping around the malls might have appeal - but not for more than one day a week. So for a break you get out of town .... Sadly, to my jaundiced eye, one sand dune looks very much like another. And there is always that mild uncertainty about the Middle East where things develop suddenly - and quickly.
Look at the Diamond in dubai with firsthomesworldwide, they guarantee to let it out and it should cover your mortgage which will cover you. Around £94k for a one bed studio, fully corporate furnished and full rental agreements already drafted. UK based developers in guilford are happy to see you any time.
We have bought here and are going out in 2 weeks to see the area courtesy of first homes. They seem fine, teh contracts we got were very heavy, very thorogh and they are contracted to complete within 6mths of the finish time or have to pay you a penalty, it was never a sales point, just in the contract.
Their solicitors are a huge firm of lawyers based in dubai, Abu Dahbi and London and many other major cities, all very legal and genuine.
We looked a t Dubai for three weeks solid before going for this one, there are cheaper, butthis one crossed the t's and dotted the i's for us.
Sucesful investing is all about timing. Canny investors were into Dubai 10 years ago and now they have moved on. All that remains are the inevitable non - investment minded purchasers.
Currently seasoned investors are moving into new markets such as Germany, Estonia, Hungary and Morocco. Even Kenya and Zanzibar.
You will neber make serious money simply following old bandwaggons.
Originally posted by Investing Abroad: Look at the Diamond in dubai with firsthomesworldwide, they guarantee to let it out and it should cover your mortgage which will cover you. Around £94k for a one bed studio, fully corporate furnished and full rental agreements already drafted. UK based developers in guilford are happy to see you any time.
We have bought here and are going out in 2 weeks to see the area courtesy of first homes. They seem fine, teh contracts we got were very heavy, very thorogh and they are contracted to complete within 6mths of the finish time or have to pay you a penalty, it was never a sales point, just in the contract.
Their solicitors are a huge firm of lawyers based in dubai, Abu Dahbi and London and many other major cities, all very legal and genuine.
We looked a t Dubai for three weeks solid before going for this one, there are cheaper, butthis one crossed the t's and dotted the i's for us.
I too have bought a 1 bed apartment in the diamond for £141,000 cornet plot with the diamond effect windows. Although expensive it's the quality and location that impressed me.
By the way how did you get the 2 day's stay at the burj to see the development - Did they contact you recently?
quote:
Originally posted by Investing Abroad: Look at the Diamond in dubai with firsthomesworldwide, they guarantee to let it out and it should cover your mortgage which will cover you. Around £94k for a one bed studio, fully corporate furnished and full rental agreements already drafted. UK based developers in guilford are happy to see you any time.
We have bought here and are going out in 2 weeks to see the area courtesy of first homes. They seem fine, teh contracts we got were very heavy, very thorogh and they are contracted to complete within 6mths of the finish time or have to pay you a penalty, it was never a sales point, just in the contract.
Their solicitors are a huge firm of lawyers based in dubai, Abu Dahbi and London and many other major cities, all very legal and genuine.
We looked a t Dubai for three weeks solid before going for this one, there are cheaper, butthis one crossed the t's and dotted the i's for us.
I think the only opinions to listen to here are those who live in Dubai & have informed views, reading the Gulf News for impartial advice & those that genuinely know about the place & its potential.
I work as an Agent for Damac Properties - the largest property developer there. I offered £55k studio apartments for sale about 5-6 months ago & they've increased in value by 4% already. There's only 15 studios still available in the same complex - Lakeside.
Yes I'm a sales person & yes I want to sell & make my commission - but my recommendations are based on people making good on their investment so they buy again & refer their friends.
Yes you'd have made more money if you invested 2 years ago, it's easy to say that now. What Dubai has over these new markets (Germany exluded) is it is becoming the Capital City (economically speaking) of the UAE & having property in most Capital cities is a winner. Is London a good place to invest? Yes if you can afford it. I overpaid for my London properties 3 & 7 years ago & now they're even more over priced. The cynics at the time said - it can't keep going up - it has. Why? It's a Finacial Capital City.
Yes invest wisely & check all angles but ignore the cynics who from what I'm reading are on the sidelines & airing uneducated opinions.
Sucesful investing is all about timing. Canny investors were into Dubai 10 years ago and now they have moved on. All that remains are the inevitable non - investment minded purchasers.
Currently seasoned investors are moving into new markets such as Germany, Estonia, Hungary and Morocco. Even Kenya and Zanzibar.
You will neber make serious money simply following old bandwaggons.
Had to laugh at this-10 years ago dubai was a samll fishing village with about 50 people.Its only in the last 4 years that people have been making big money.Its also only since 2002 that foreigners have been allowed to buy in dubai.If your going to post a comment on here then u should at least know what your talking about !
The buying tip I gave a few months ago is materialising - all the £55k studio apartments have sold out & have gaied 4% - so not just a sales pitch & proves the Dubai doubters wrong - its still a happening place IF you buy the right thing from an established developer. Good luck.
Qatar is a cheaper option for GCC investment and some impressive new places open to foreign buyers are under construction. Dubai has a glamour and glitz but Doha is rapidly catching up. Potentially hosting the 2012 Olympics might also boost real estate prices. If your heart is set on Dubai its a happening and fun place but if you are flexible then maybe consider Qatar as an option - check out 'The Pearl Qatar'.
Sucesful investing is all about timing. Canny investors were into Dubai 10 years ago and now they have moved on. All that remains are the inevitable non - investment minded purchasers.
Currently seasoned investors are moving into new markets such as Germany, Estonia, Hungary and Morocco. Even Kenya and Zanzibar.
You will neber make serious money simply following old bandwaggons.
Had to laugh at this-10 years ago dubai was a samll fishing village with about 50 people.Its only in the last 4 years that people have been making big money.Its also only since 2002 that foreigners have been allowed to buy in dubai.If your going to post a comment on here then u should at least know what your talking about !
So your saying peeps were not buying real estate in Dubai in 1997. Well that is odd, because someone I know did just that!
Dubai will wring you dry, and 70% of you will not find a tenant for years, Wake up
Originally posted by Luxury Dubai: The buying tip I gave a few months ago is materialising - all the £55k studio apartments have sold out & have gaied 4% - so not just a sales pitch & proves the Dubai doubters wrong - its still a happening place IF you buy the right thing from an established developer. Good luck.
I've seen this so many times, and then sure enough the devloper then drops the price on the next phase.
Muppetry. Studies indicate there will be a mass oversupply. A property without a tenant is not an investment. No doubt funded by a UK mortgage somewhere down the line so in effect you are losing money.
Quatar Holdings, Emmar and many other prestigious developers are investing billions in Morocco. Dubai is yesterdays story.
Couldn't disagree more. Dubai still has a long way to go.
Here are some headlines taken today from AME Info:
Rents and property prices to surge in 2008
This is a question that tenants and potential home buyers are asking all the time. But with talk about the rent cap not being renewed for 2008 and an explosion of investment banking growth in Dubai, combined with inflationary local salary rises, it is a matter of how much, and not whether rents and prices rise.
United Arab Emirates: Wednesday, November 28 - 2007 at 10:12
Rental prices and property prices are expected to leap again next year
Inflation sparking price rises as property oversupply fails to materialise
Buy a home in Dubai and beat local inflation
Will Middle East liquidity create a price spike in Dubai real estate?
More Dubai Property stories » It is arguable that the UAE is living in its own new era. Oil prices and oil revenues are at an all-time high. The government is proactively expanding the local economy through private sector led investment. And the cushion of oil surplus reserves is there to fuel this boom whatever happens in the global economy.
At the same time, the focus of expansion in Dubai for 2008 will be the financial sector. Deutsche Bank's regional chairman Dr. Henry Azzam recently said 2008 would be a 'bonanza' for investment bankers in the UAE with a large number of high value IPOs coming up both at home and in neighboring states.
These are the guys with the fattest pay packets who can pay the highest rents. As they roll into town these new residents will gradually displace less highly paid residents in the best areas; this phenomenon has already happened but it is going to become even more noteworthy.
New perspectives Some new banking residents will quickly spot just what good value Dubai property is compared to where they came from, and buy immediately. Meanwhile, other existing residents will be frightened by rising rentals and decide to take the plunge and buy themselves.
Unfortunately the supply of property in Dubai has been slower in coming on stream than expected. Therefore, although 2008 will see many new buildings being completed this is still unlikely to be enough to satisfy demand.
Another factor likely to be driving prices upward in 2008 will be the falling cost of mortgage finance. The UAE currency peg means that if the US cuts its interest rates next year - as seems inevitable with the US financial crisis now in progress and markets point to 3.5 per cent - then home finance costs will fall in the UAE at a time of rising rents.
No-brainer Indeed, with UAE inflation in 2008 almost certain to top the current rate of 10-15 per cent, depending on who you talk to, then real interest rates will continue to be negative. This means that inflation is eroding the real value of your debt and that borrowing money to buy real estate is a no-brainer.
Those Dubai residents who fear a housing crash should search back on Google to find articles written in the late 1990s about an imminent crash in UK house prices. In fact, UK house prices went on to double or even triple and have barely started to show signs of weakness this autumn, despite the credit crunch.
In Dubai it definitely looks as though the real estate boom is set for at least another year, and the prospect is that the good times may roll on for a lot longer than that as markets usually overshoot on the upside. So how much will rents and prices rise? 10-20 per cent looks on the conservative side.
Yields were 8% or around there, according to some research, developers quoting higher.
Dubai, what I understand has peaked, and in next 3 or so years there will be a saturation of property on the market. So pushing yields down.
Think was a buyers market a fews ago, now, is experiencing slow down. It has to establish itself as a genuine lifestyle destination, like Sydney or other major city.
At the moment is more of hub where East meets West, but then other centers eg. Cairo are just as important.
Must be better places than Dubai to invest now, I cant see a good exit strategy in Dubai. A place to live and work, not to buy and sell, or buy and let, too much competition, prices to high. (in my humble opinion)
I have just browsed through this thread and find that practically everyone is looking at these developments as investments.
I would like to ask this. If you can't see yourself living for any length of time in a development in Dubai, why should anyone else want to?
If I was working in Dubai I would consider buying a place to live in, and then rent it out or dispose of it when I left. I certainly would think twice about paying rental to an absentee investor.
Why would anyone want to live for any length of time in a country with an opressive climate and nothing very much to do or see in leisure hours, unless you go in for artificial entertainment and mindless socialising. I can understand anyone working there being a customer but otherwise it has no attraction whatsoever.
As for a salesperson advertising the place, she would wouldn't she.
Thorr 'So your saying peeps were not buying real estate in Dubai in 1997. Well that is odd, because someone I know did just that!
Dubai will wring you dry, and 70% of you will not find a tenant for years, Wake up ' I'm saying that residents other then UAE nationals were not allowed to buy properties in dubai untill around 2001/2002 !
if investors want to put money into Dubai than a lot of money can still be made, but you have to invest wisely. One of the Dubais and the UAE's key up and coming industries is Tourism. Dubai presently operates an incredibly high occupancy rate on Hotel as does Ras AL Khaimah, I belive in January 2006 it was running at around 80%. This trend should god willing continue and get better once Dubai Land comes about along with Sports city.
