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United Arab Emirates - دار زايـــد The exciting new world in Dubai , Abu Dhabi and other Emirates



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Old February 9th, 2005, 04:11 PM   #41
Dubai_Steve
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yes, my advice is to find someway to buy something now before construction is complete. I would guess at another 20-25% increase around then (2006-2007), followed by a slower increase rate of 1.5% per month as people start to buy and sell, pushing the prices up each time. Later after another 2 years I would expect another big increase jump of 25% as DubaiLand and Atlantis etc. get operational and well advertised. Then prices should level off at to the global market rate. Would guess at 100% increase in next 7 years.

Note, This is all in my opinion only.
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Old February 9th, 2005, 06:09 PM   #42
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Three important factors

You have to keep three things in mind:

1) law situation still not 100% clear
2) buildings are not completed
3) Dubai is one big construction site (at least for the projects we are talking about)

Those three factors are knock out criteria for many prospective buyers. Once those are out of the way, there will be a whole new wave of buyers coming into the market.

There are people who have enough money but they would never buy off plan. They prefer to wait until they can see and feel it.

On the other hand many people with a more limited financial background would never buy into a market without clear a law situation. This should be dealt with this year.

Then most people hate noise and there will be noise and chaos for the next 2-3 years at least until the larger projects are finished.

I am expecting a slow but steady increase in prices until rental yields are down to international standards.
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Old February 9th, 2005, 06:50 PM   #43
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ChrisO, so in other words if you want to make some money buy now before points 1,2 and 3 have been dealt with. ie. before the mass of non risk takers enter the market and push prices up. Surely this would create a surge in prices rises rather than a slow stready increase as it seems many of the major project will be complete around the same time.
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Old February 9th, 2005, 07:29 PM   #44
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If 1, 2 ,3 points will ok , coming to Dubai Investment Funds too, and come a big boom on the market , maybe 150-200 % incr..
(Reality Investmens Founds and other )
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Old February 9th, 2005, 07:57 PM   #45
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I think one of the major contributors to a booming property market, which you guys have missed out, is the increasing number of Banks who are prepared to give out mortgages for these developments.
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Old February 9th, 2005, 08:43 PM   #46
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Funds

I just got info on an investment fund financing one of the JLT projects. The timeframe is 3.5 years, so its only financing the construction phase until all apts. are sold.

Will post more info on that one as soon as I get it.

Ebby, banks will increase their commitment to the market once the law situation is clear.
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Old February 11th, 2005, 10:36 AM   #47
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Dubai Star (JLT plot L2)

The project is called "Dubai Star" located on plot L2 at JLT. A 45 story tower.

More info on the website: http://www.ac-invest.com/
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Old February 11th, 2005, 12:18 PM   #48
Kamal (UK)
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The banks have onerous terms-

HSBC- very limited in the developments that it will fund
30% downpayment
Repayment over 15 years.
Very strong requirements from borrower regarding financial background (almost too onerous)

They are really taking very little risk and the market is far from competitive. Compare this to UK where they are willing to provide any loan size to people who can put a 20% deposit down.
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Old February 11th, 2005, 01:19 PM   #49
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I have also found that the banks are very strict in lending criteria. I think property would sell much better in Dubai if this matched international standards. The worst thing is that there seems to be very little Buy to Let mortages available in Dubai and will not take rental income into account ie. in the UK only 15% is required with no proof of income as long as the rental assesment shows that rent will pay 133% of mortgage interest payment. Unless Dubai follows suit they will not have very good sustained international interest.
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Old February 11th, 2005, 01:23 PM   #50
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Resale and Rental show next month

Dubai : The Dubai Resale and Rental Property Show is being launched by Dubai Shows Ltd.

This new event has been scheduled to be held on March 24 and 25.

The Government of Dubai's new law enabling foreigners to own or lease property has led to a huge number of developers offering properties "off-plan" at prices to suit all budgets.

Many of these properties are nearing completion, which will result in a huge demand from the public wishing to buy properties in the secondary markets and move in immediately.

Those who prefer to rent will also have a larger choice in the coming months.

This event, being supported by Gulf News, Dubai Eye 103.8 and InTV, will enable buyers and renters to meet a large number of leading real estate agents, brokers and lenders exhibiting under one roof.

Mike Bridge, regional sales director for Dubai Shows, said: "The market here in the UAE is changing from 'off plan' to corporations and individuals now keen to sell onto the secondary market. Also many buyers who work here don't wish to wait several years for their home to be built and this is creating a strong resale market."

He said the event had been scheduled to benefit from the large numbers of overseas investors and buyers expected to be in town for the Dubai World Cup.
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Old February 11th, 2005, 09:13 PM   #51
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Well this is god to hear:

http://www.ameinfo.com/cgi-bin/cms/p...53307.html&d=1

"Premiums decline on new property launches"
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Old February 11th, 2005, 10:06 PM   #52
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Hope we still get to see all the towers which have been announced but havent started construction yet.
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Old February 11th, 2005, 10:09 PM   #53
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Let's not forget that the banks in Dubai are lending in spite the fact that there is no federal law in place for foreign ownership, nor is there a proper legal framework for repossession. In the UK, the law is well defined and well enforced, so the banks should be falling over themselves to give out mortgages, since they have all the legal safeguards they need.

The fact that these highly conservative institutions are prepared to take financial risk of this magnitude is an excellent sign for the future of Dubai
property market.
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Old February 11th, 2005, 10:17 PM   #54
Krazy
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I guess they all trust Shk Mohammed to the fullest.
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Old February 14th, 2005, 11:02 AM   #55
Kamal (UK)
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Quote:
Originally Posted by ebby
Let's not forget that the banks in Dubai are lending in spite the fact that there is no federal law in place for foreign ownership, nor is there a proper legal framework for repossession. In the UK, the law is well defined and well enforced, so the banks should be falling over themselves to give out mortgages, since they have all the legal safeguards they need.

The fact that these highly conservative institutions are prepared to take financial risk of this magnitude is an excellent sign for the future of Dubai
property market.
Risk-what risk! Not many people are going to walk away after putting down a 30% deposit and I am sure local courts will be happy to allow the local banks the right to repossess the property
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Old February 15th, 2005, 01:41 PM   #56
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Jumeirah Village was sold out in 24hours (over 7000 villas) to mostly speculators. If you wanted to buy, you had to go and hand in the deposit for whatever property you want (3 bed villa, apartment, etc) but you wouldn't get to see any floorplans and you couldn't even look at a masterplan so you could choose the plot! Instead they would call you later and tell you your plot number
Now tell me, would anybody that was intending to live in that property buy in such conditions??
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Old February 15th, 2005, 06:13 PM   #57
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I had the same expeirence. I was being sold the EXECUTIVE TOWER in Jumeriah Lake Towers by a company when I asked for the floor plans and design of building they could not show me as they home builders who are the designers have not printed any info on it yet.
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Old February 16th, 2005, 10:51 PM   #58
NickDubai
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What are your plans to finance your purchase? Have you got mortgage arranged? Who is the banks to approach as I see certain banks are only lending to certain developments. Will this change soon?
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Old February 19th, 2005, 10:15 PM   #59
ebby
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More than Dh30 billion worth of property is projected to be released in the Dubai market in the next 3 years. While the property sector sold Dh7 billion worth property, Dh4 billion was financed through mortgage channel. Currently, the market has premium levels ranging from 10 to 30 per cent.

http://www.albawaba.com/en/countries/UAE/180202
http://www.khaleejtimes.com/DisplayA...ction=business
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Old February 21st, 2005, 03:05 PM   #60
Nazim
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where will the Dubai resale & Rental Property Show be held???
Will there be exhibitors of NEW projects there as well??

Do you think this is a show visiting for someone interested in buying an apartment??
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