Guys, you probably heard of this topic a zillion times, but one more wont harm.

I am beginning to feel seriously concerned about the UAE property market and wanted to know if others share the same feeling.

Firstly, I am an investment consultant and I have experience from UK and currently working in a british real estate company in UAE. What I understand over my time here, is that the UAE market is very short term. And this is the concern.

People are buying like crazy, and then selling in the same week at higher premiums, good for them, but is there much analysis put in this? What about the end user? Who is going to live in these properties.

Some projects havent even started and the units are bought and sold with papers, nothing more. This is extremely fake and thats worrying.

Alot of developers appeared out of nowhere, I dare you guys to name the developers you bought from and give me some history about them. Who are these developers, whats their reputation, how do we know they are goin to deliver a decent product.

Many of you here are complaining about the procedures, these are negative signs of unprofessionalism from the side of the developers and ignorance from the side of investors.

Also, this morning I hear that Tameer has put its project Al Salam City where alot of investors threw their money.... so this project is semi cancelled.... so they saying people will get their money back (without premium)... and the project as a whole was a failure because of power shortage and no water etc.

This is the biggest problem and we've only seen the tip of ice berg. Is there enough power to make these projects feasable? Me thinks not.

I am sure the investors make money short term, but are we goin to see more of these failed projects?

What will happen in 2009, 2010, 2011... when these millions of projects will be completed, (if completed).... who is goin to fill these apartments and villas? You and I? Me thinks not. Are you prepared to buy a 1 bed which will then be about 2.7 million lets say.... how the hell will you rent it out? Can you let it for 200,000? even 180,000 per annum.... for a one bed? I'll go live in friggin palace in Monaco for that rent.

So my concern is, ... who is goin to fill these thousands and thousands of units.

People buyin for 2500/sqft NOW, before the construction even started..... can you guarantee you will be able to sell it in the near future? or even buyer2.... will he be able to resell and make profit? ... and will the end user pay somethin with 100% premium to live in it?

And to finally seal it off.... developers (even the big names) have no clear procedure on how to buy, sell, register (in connection with RERA, Lands department etc).

This is madness. Are you all thinking to buy and sell while you still can and not bothered about what happens in 3 years time? Cos alot of buildings will lie empty I tell you that.

Inv.

Al Salam City put on hold

Bad news for those who bought in Al Salam City.... sorry guys. Hang in there!

Inv.

I agree with most of your comments,and its becoming more and more alarming for those ppl investing in Ajman , UAQ , RAK, etc . Dubai will somehow manage crisis of power and water , but from where they will bring ppl to fill in ? and that s the time rents will start crashing.Ultimately that is the major cause of inflation,so may be govt is thinking in that direction also.
supply more and demand less to bring down rents.

there is a serious power problem in RAK as well....wonder if the RAk projects are going to end the same way.....

also ajman projects

Where? who's selling? me thinks me wants!

u serious??????
there's a property exhibition the next 3 days in Grand Hyatt Dubai - Property Shopper.
u can go have a look around there...might get something nice...

I totally agree with the comments made by Investoman_uae. I am not a pro at Real Estate and only recently gotinterested due to all the hype in UAE ReaL Estate. As well as seeing some of my friends, who only have a brain the size of a 'pea', and made lots of money. I have personally always been wary of UAE as the figures being mentioned have been astronomical and in some cases the Internet is not always helpful as too much information and you always have the doubt with some weird user giving false information etc.

I have been advised to invest into a project called Al Badrah by Nakheel. Please view link Nakheel unveils Badrah district at Waterfront

Have been informed that the launch will have thousands of people queuing all night.

I am interested to purchase and thereafter Flip this investment in a short period of time at 25%-30% Premium.

Nakheel will be launching Al Badrah this forthcoming Sunday (phase 1)

Approx prices:
Studio-493sqft-685,000AED
1br-655 sqft-980,000AED
2br-907sqft 1,220,000AED
3br-1286sqft-1,820,000AED
2br townhouse -1179sqft-1,900,000AED
3br townhouse -1638sqft-2,285,000AED

Plse can someone gve me advice on above...

I agree as well. It totally madness, as one quoted in another thread.

Its a train moving full speed ahead, everybody jumping in for the ride, then jump off at the next stop, taking their profits until the last passenger gets on the ride and unknown to him the next stop is the crash.

Again, its happening all over the world, prices are dropping and eventually we will see a correction in Dubai, albeit it being the world number 1 Financial City, prices will have to drop, there will be empty properties, as you state 'who is going to fill them'?, then this will be the time to invest, wisely.
Hopefully by then, the unknown developers would have fallen off the Trains as well and the developers with strong balance books will be able to continue. This wouold in turn nring in a process of legalislation. In times like these Developers will be looking and replying to our emails and telephone calls, asking ask to buy. We can then choose to ignore them or whatever you like. Its already starting with DAMAC.

On the other hand, visitors to Dubai is to increase from, i think, 10 Million a year to 60 Million a year in 5 to 10 Years, Olympic games in 2020?, Grand Prix, Dubailand , that will compete with Florida's Disney land, World Class beaches, world class hotels, eventually an excellant transport system, Motocity - World biggest Go kart Track - so in the long run, with location , location and Location in mind, your apartment could hold in value but the times of flipping will stop due to high prices. They ARE very high. I am looking long term in Dubai, with Location in mind i will pay the price , with the rents to cover. It all Mathematics but what is happening in Dubai defies all mathematical equations apart from the fact the + and the MONEY sign !

So enjoy the ride, make the money while you can but if you are coming on the the last stop accept your losses.