Jump to content
House Price Crash Forum
Sign in to follow this  
Sancho Panza

British Buyers Pile Into Dubai As Prices Slide.what 2008?

Recommended Posts

Telegraph 20.12.14

'British investors are piling back into Dubai’s property market in search of a bargain despite experts warning that it is beginning to cool.

Memories of the emirate’s real estate bubble bursting in 2009, exposing its debt-laden economy, have started to fade with UK buyers sinking almost £1bn into the area between January and June – a 44pc jump on 2013.

British nationals were the second most significant property investor behind the Indians, who upped their levels of investment by 31pc to £1.75bn, and just ahead of Pakistani buyers who spent 50pc more at £750m.

But despite a slew of forthcoming high-profile projects such as a new golf course from US tycoon Donald Trump, and a pipeline of luxury developments, the rate of growth is slowing, with confidence also knocked by this month's stock market crash.

After a 51pc house-price rise in 2013 the Federal Government imposed stricter borrowing rules and doubled property registration fees to allay the fears expressed by the International Monetary Fund of a potential Dubai property bubble, dampening growth.

Average sale prices grew by 6pc in Q2, down from 10pc in the previous quarter, the report showed, coinciding with a huge slug of investment from the UK.

“Certainly, growth on the magnitude recorded last year was unsustainable and always in danger of petering out,” said Faisal Durrani, an analyst at Cluttons.

Oversupply is also cooling the market with 372,000 units under construction this year, up from 342,000 in 2011, according to the property group, with luxury homes such as a £2.8m four-bedroom villa on the world’s largest man-made island, off-Dubai, Palm Jumeirah.

“With signs of reduced sales activity – particularly in the secondary villa market – it is likely that asking prices in this sector will decline further in the coming months,” Alan Roberston, chief executive of the Middle East practice at JLL.

Sales volumes have declined in all sectors recently, as data from the Dubai Land Department showed villa sales in May 2014 down by almost 50pc on the same month in 2013.

“The upper end of the villa market has been hit particularly hard with transactions volumes dipping sharply this year,” said Mr Durrani.

However, slowing house price growth has not muted the construction industry in Dubai with contracts for residential building work worth $5.4bn awarded in the first half of the year.

Major infrastructure projects such as the Eithad Rail, the Dubai Tram and Al Maktoum International Airport, should continue to attract property investors, Mr Durrani added.'

Students of price and volume stay awake at the back.

Share this post


Link to post
Share on other sites

Oversupply is also cooling the market with 372,000 units under construction this year, up from 342,000 in 2011, ..

So they're building 3 times as many units as the UK each year when they only have a population of about 2 million - less than 1/30 of the UK's population.

Dubai is one city.

Edited by billybong

Share this post


Link to post
Share on other sites

So they're building 3 times as many units as the UK each year when they only have a population of about 2 million - less than 1/30 of the UK's population.

Dubai is one city.hole.

corrected.

Share this post


Link to post
Share on other sites

Dubai is an unbearably hot country, flies everywhere and run by fanatics. No thanks.

Plus, the height of vulgar decadence (ironically frowned upon in Islam), and no culture or history whatsoever.

Share this post


Link to post
Share on other sites

Dubai is an unbearably hot country, flies everywhere and run by fanatics. No thanks.

It's a good place for winter sunshine, lovely temp at this time of year. But it's become very blingy - OK maybe if you're into shopping.

Used to love it years ago but wouldn't want to go now.

Sea is lovely if that's your thing.

Share this post


Link to post
Share on other sites

Anyone noticed the reemergence of those awful. ..a place in the sun...proframs....tge overseas bulls are back...everything has returned to normal.

If anything it might be a sign of impending collapse :)

Share this post


Link to post
Share on other sites

Dubai is an unbearably hot country, flies everywhere and run by fanatics. No thanks.

With zero taxes, petrol cheaper than water and a load of bangladeshi's who will do whatever they are told to or else their passport meets Mr. Fire.

Its not that difficult to see the attraction for a lot of people, is it?

Share this post


Link to post
Share on other sites

With zero taxes, petrol cheaper than water and a load of bangladeshi's who will do whatever they are told to or else their passport meets Mr. Fire.

Its not that difficult to see the attraction for a lot of people, is it?

For mentally deranged narcissistic psychopaths?

Share this post


Link to post
Share on other sites

With zero taxes, petrol cheaper than water and a load of bangladeshi's who will do whatever they are told to or else their passport meets Mr. Fire.

Its not that difficult to see the attraction for a lot of people, is it?

Dubai is an emirate full of contradictions. Money counts for little if you're treated as a SECOND CLASS citizen which you will be regardless of occupation/riches.

The grass is always greener in a foreign land far, far away just not Dubai that's built on sand.

Edited by longtomsilver

Share this post


Link to post
Share on other sites

Sunday Times 07.06.2015

"Lower prices send the message that the market is solid, real and no longer merely for speculators.' - now where's my £4m?

http://www.thesundaytimes.co.uk/sto/style/homes_and_gardens/overseas_property/article1564671.ece

Average prices about 10% lower than last year. S&P forecasts 20% price drop next 12 months. Prices/values up 50% between 2012-2014.

Share this post


Link to post
Share on other sites

Well we just need another owners-are-victims 2008 response and more QE; another house price doubling, and the excuse givers to carry it all again. Maybe this time fully death wipe out a few hundred million of the poor excuse giver side to their very own glee to protect victims on the owner/debt side.

We're still at the beginning of what Dubai can achieve." Which is why his is reinvesting the £4m he will make from the sale of his villa into another investment property. "I'll soon make back the 12% hit I'm taking," he grins.

Share this post


Link to post
Share on other sites
Another Dubai debt crunch is looming as oil slump hits Gulf Persian Gulf emirate could suffer the most as falling oil prices hit economies across the Middle East. Energy superpowers create the economic activity which sustains Dubai and its large service economic which rests on the industrial port of Jebel Ali and the emirate’s position as a transport hub. When oil is trading at $100 per barrel this model works well.

However, with oil now trading at around $50 per barrel and some forecasters warning that crude may even drop to levels much lower Dubai’s economy is once again looking extremely fragile.

The International Monetary Fund (IMF) warned recently that Dubai was once again loading up on debt. According to the fund GREs have increased their net debt positions to around $93bn (£60bn) over the last year, while the emirate’s total debt is arguably unsustainable at around 102pc of gross domestic product.

At the same time some key drivers of Dubai’s economy are beginning to stutter. Real estate - a key driver for the economy and one partly linked to expat employment - is in reverse. According to JLL transactions fell by almost 70pc in the second quarter.

Share this post


Link to post
Share on other sites

All you need to know about Dubai is that there is enough natural drinking water for precisely nobody. It all has to be desalinated. I wonder how many terrorists it would take to destroy the two main plants and cause a couple of million to die of thirst.

And its built on sand.

A greater example of mankind's folly you could never ask for.

It won't even make a very good movie-set derelict city, since even vines won't grow there.

The Detroit of the Middle East.

Except Detroit isn't surrounded by religious psychopaths.

Share this post


Link to post
Share on other sites

The tax status is the most attractive thing, no question about it.

Hmm. A place to spend a year while withdrawing my UK pension money? The saving through being out of reach of HMRC could be more than I've ever earned in a year.

Share this post


Link to post
Share on other sites

All you need to know about Dubai is that there is enough natural drinking water for precisely nobody. It all has to be desalinated. I wonder how many terrorists it would take to destroy the two main plants and cause a couple of million to die of thirst.

Are there no public beaches?

You could rig up your own personal solar-powered desalinator. A sheet of transparent plastic above the sea to gather water and collect the runoff.

Share this post


Link to post
Share on other sites

All you need to know about Dubai...

I rather like it. Change planes there about twice a year and it all works pretty well. Stay over and it costs about £20 for a gin which is a bummer. Still, taking over from Beirut as the Arab playground is working out fairly well for them.

Praising with faint damns, I know, but it's actually sort of OK!

Share this post


Link to post
Share on other sites

I'm moving to Dubai in November - from Singapore. I have spent a lot of time there in the last few years and although not great, the place is certainly not terrible. Save for the summer heat and Ramadan, there's not much wrong with it.

Word on the street is that real estate is now in a bubble again and "investors" are either offloading or waiting it out.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   223 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.