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cashinmattress

The Dubai Wasteland

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Forty percent of the buildings in Dubai are vacant, according to Arabian Business.

For comparison only 28 percent of homes are vacant in America's ghost town, Detroit.

Now here's the scary part. Dubai hasn't stopped building:

As many as 48,000 homes will be completed in the next two years, increasing current supply by 12 percent, Landmark Advisory estimates.

Around 12 million sq ft of commercial space probably will be completed in Dubai this year, according to Jones Lang LaSalle Inc.

Real estate values have already fallen by over 60 percent since the Dubai crisis, according to Arabian Business. New properties coming online are expected to push prices down by another 10-15 percent, in a slump lasting another 18 months.

Last year Dubai office space was the fourth most expensive in the world, at $1,214 per square foot per year, according to Cushman & Wakefield. This year the emirate has fallen off the list, with declines of more than 30 percent.

Silly Emirates. How many Brits have lost their shirts by putting their quid into this massive con?

Edited by cashinmattress

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If they keep falling I could seriously consider buying something there one day in a couple of years but quite frankly I don't believe that quote about prices falling 60% already.

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If they keep falling I could seriously consider buying something there one day in a couple of years but quite frankly I don't believe that quote about prices falling 60% already.

When I thought about buying in the US, a friend of mine said that there was an old Chinese saying:

The Mountains are high, and the Emperor is far away.

It sounds good if you think of Burt Kwouk saying it.

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If prices in Dubai keep going the way they are doing, they will be paying for your flight and then handing you a cheque to live there, on account of course that you do join any protests against the ruling mob there.

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If prices in Dubai keep going the way they are doing, they will be paying for your flight and then handing you a cheque to live there, on account of course that you do join any protests against the ruling mob there.

tbh that is exactly what they would have to do to get me to live there. I think it would take several fat cheques just to get my wife to even consider it.

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If prices in Dubai keep going the way they are doing, they will be paying for your flight and then handing you a cheque to live there, on account of course that you do join any protests against the ruling mob there.

If I were in charge or Dubai, I would probably start thinking about maybe treating my very large slave labour contigency a little bit better in case they decide to have a bit of a protest too.

That or else restrict how much foreign news they are able to watch.

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If I were in charge or Dubai, I would probably start thinking about maybe treating my very large slave labour contigency a little bit better in case they decide to have a bit of a protest too.

er......that is why they are still building. What do you think would happen if all of the building stopped?

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If they keep falling I could seriously consider buying something there one day in a couple of years but quite frankly I don't believe that quote about prices falling 60% already.

No matter how far they fall they could still fall further. They could become a liability, in fact. I believe in Detroit the state offers to pay people to take some properties because of the liabilities involved, maintainance and taxes.

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40% vacant and what percentage are just mothballed?

Quite high. Dubai property market is basically a state monopoly. The two main developers Nakeel and Emar are probably 80% of the market and are both quasi-state owned as is the majoirty of the mortage market.

And they use this to manipulate prices. Where I lived (JBR) was a complex of several tower blocks buy the sea. probably 2/3rds of the tower blocks were at least half full. The other 1/3rd, despite being finished were not put on the market.

I'm pretty sure that their long term plan is (or at least was) to manipulate the market to attract as many foreign 'investors' as possible into a market where ownership rights are shaky and maintenece fees are crazy.

also the current Arab world problems will be quite good for Dubai real estate.

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If I were in charge or Dubai, I would probably start thinking about maybe treating my very large slave labour contigency a little bit better in case they decide to have a bit of a protest too.

That or else restrict how much foreign news they are able to watch.

Or just replace them all every 3 years and send them packing back home for any disturbance (when they get home they then owe the person who got them the job a load of money which on local wages they would never be able to repay and their fanmily wouldn;t eat).

It is an evil system which should be looked into by the UN or something but definately no chance of regime change inducing riots

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er......that is why they are still building. What do you think would happen if all of the building stopped?

errr no

they are still building because that way they can hold the suckers who 'invested' in off plan property to making the further payments on the original price agreed (most likely during the boom). Most of these properties were sold off plan on payment schemes that meant the investor pays in staggered payments (with small diposit) while the building is being built. However the full balance was to be payed before the building is finished. As long as it is finished more or less on time these people will have to, on threat of prison, pay up or leave the country. I'm guessing that most can't afford to pay and were planning to flip before completion at a profit.

If they stopped building the workers would just be sent home with 1 months salary for each year worked.

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Some investors have even been paying for 5 years for projects which are not even off the grounds. If they stop, they will be jailed for defaulting. These are not necessarily investors but people who have been living in Dubai for years and decided to buy as rents were rocketing and they were forced to move out their home because of unscrupulous landlords.

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
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      • up 5%



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