Tuesday, Apr 28, 2009
Speculators exit
BBC: Dubai property prices 'fall 41%'
Property prices in Dubai plunged 41% during the first three months of this year, a report has calculated. The decline is from the last quarter of 2008, said global real estate consultancy Colliers International. It is just the latest indication of the extent to which Dubai's property boom of recent years has come to an end in the face of the worldwide recession. Colliers said prices had fallen as global finance has dried up and job opportunities in Dubai have declined.
Posted by jack c @ 04:41 PM (1657 views) Add Comment
14 Comments
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1. peter_2008 said...
The link doesn't work.
Anyway, 41% QoQ fall? That's 88% YoY!! Why can we have something as spectacular as Dubai happening in the UK?
Oh, I remember now, because taxpayer's money has been used to bail out the speculators.
2. str 2007 said...
Wonderful
peter
I think all property in Dubai is speculative whereas in the uk perhaps 10% is speculative.
Now then, not a footballer myself but that chap from the middle east who's bought Manchester City I believe was some sort of property developer.
Suspect we'll here that he's gone bust next (unless he's supported by Oil and is properly rich instead of just property rich.
3. jack c said...
Not sure what went wrong with the link which is from BBC Business section - content as follows
Property prices in Dubai plunged 41% during the first three months of this year, a report has calculated. The decline is from the last quarter of 2008, said global real estate consultancy Colliers International. It is just the latest indication of the extent to which Dubai's property boom of recent years has come to an end in the face of the worldwide recession. Colliers said prices had fallen as global finance has dried up and job opportunities in Dubai have declined.
Speculators exit
The firm's report measured property prices in parts of Dubai where foreign workers have been allowed to buy homes since the market was opened up in 2002. The heat has gone out the market completely John Davis, Colliers International The 41% drop in prices between January and March followed an 8% fall in the previous three-month period. Colliers added that speculators - people who had bought property in Dubai as an investment - had already left the market. It said prices were now likely to continue to fall, but it was too early to predict when the market would hit rock bottom.
"The heat has gone out the market completely," said Colliers' Middle East chief executive John Davis.
Dubai has enjoyed rapid economic growth over the past decade, led by a construction boom, as its ruler Mohammed bin Rashid Al Maktoum sought to diversify the economy away from its diminishing oil reserves.
It is one of the seven states that make up the United Arab Emirates.
4. brickormortis said...
...and they are still overpriced and, in many cases, very poorly built. I bet most people who were speculating in Dubai have never even been and therefore ever seen the buildingings within which they invest their money. The marketing laws need to be tightened I can tell you that because what is being built sure as hell don't look like what gets bulit!
5. Dave said...
Does it matter to a footballer on 100k plus a week how much it has gone down he cant possibly spend that sort of money even if his wag has got expensive taste
6. yorkshireman said...
Matthew Chapter 7, Verse 26.
"Everyone who keeps on hearing these messages of mine and never puts them into practice is like a foolish man who built his house on sand".
7. Tenyearstogetmymoneyback said...
There was an article along these lines in one of the newspapers a few weeks ago.
They made an interesting comparison with Detroit. They reckoned that while Detroit could be taken over by Bohemian
artists and similar, Dubai has very high running costs due to all the High Rise buildings air conditioning etc so might end up
being abandoned when the money runs short.
:- Duncan
8. icarus said...
By their allegiances ye shall know them. Michael Owen : Newcastle United, Northern Rock and Dubai property speculation.
Ladbrokes: "Would you like to add a fourth, Michael, to make it three trebles and a four-horse accumulator?"
9. icarus said...
er..make that four trebles....
10. mrmickey said...
I've never seen the point of living on a building site in the middle of a desert anyway. Have some friends who baught a flat there a couple of years ago for £250,000 they were offered over a million for it about a year ago, they didn't take it as they liked the flat, seeing them Saturday better not rub it in too much.
11. str 2007 said...
mrmickey
250k to 1m in 2 years, that sounds very optimistic particularly given the vast choice of new builds out there.
Are your friends telling you the truth ?
12. mrmickey said...
I have no reson to believe they'd lie, I think they've had it more then 2 years, the block of flats manager made them the offer.
13. str 2007 said...
Bet they're cursing themselves now.
14. p. doff said...
I did a valuation 18 months ago on a house where the vendor was selling up to 'invest' her considerable profits in Dubai. I told her IMHO I thought she was selling at the right time, possibly near the peak.
Looks like she might have bought the next one at the peak too.