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Your Personal Property Investments & The UAE Real Estate Market

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actually there have been so many threads about specific questions on specific properties like towers.

in my opinion it has become too much and a lot of double threads have been created.

this is why i go for a new sticky thread in which everybody is welcomed to ask our members about their views on specific property, private investment ambitions and the property market in general.
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I initially invested in off-plan property with Azizi, 3 years ago, surprise surprise the project was cancelled.... I had to transfer my investment to another project with said same developer at a loss, and even that's been delayed by over a year.

To top that off the value of real estate has decreased significantly (albeit a global issue), as supply continues to increase in UAE... With demand failing to match up.

We'll see if the sector ever recovers, because fundamental changes in policy (immigration + off-plan developments) need to be implemented in order to stimulate growth within real estate.
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I second this, if I had the chance to start over I would not have invested in Azizi, across multiple different projects... Their project in Victoria has been unofficially cancelled, and they constantly fail to deliver on deadlines...

They are going to need to produce something pretty special in Riviera for me to change my mind.
For sure there is people who made bad investments and made their research later. For example you can not invest in Dubai and buy Azizi .. Be smart
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Bottom of the market? you do realise there are still tens of thousands of units expected to come into market supply within the next year... with COVID being the catalyst for the decreased demand.

Very optimistic of you, however.
People are still buying.....transactions have picked up significantly. On a personal level i managed to sell a villa in JGE for a nice little profit to an end user after receiving multiple offers. It was on the market for less than week. Having said that i am still trying to reconcile the increase in transactions to pre-covid levels that has happened to quickly especially in light of the job losses/ salary cuts and overall economic uncertainty. Also when i think its a bad time to invest it usually ends up being the best time and i've missed the opportunity! Perhaps we have reached the bottom of the market in terms of prices....
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Alot of off-plan projects have structured payments plans, whereby the money is directly paid into an escrow account... so yes, the investor is protected unless they have paid the developer directly.
Have Dubai governmental guarantees improved over the last years? Would off-plan buyers at Damac, who already paid instalments, receive their money back? I remember from the last collapse of Dubai during the financial crisis, that many buyers lost vast sums of money or that they were offered lesser properties at inferior projects. Currently the number of partly finished projects that are “On Hold”, seems to be rising. Is there any form of governmental guarantee fund that ensures that these projects will be finished? Or is it just bad luck when another developer goes into bankruptcy?
Permanent residency, public relations, press release, papa roach.... Nobody knows, its provocative, it gets the people going.
Apparently there is an influx of Israeli investors appearing on the market... A market in which they've been excluded from up until now.
Ditto, the same with an apartment in Dubai Hills. Receiving calls with cash offers for only 3-5% less than the OP.
Perhaps they've been waiting a long time for the opportunity to do so.

As early as now? Really? That's surprising. I would think they'd take some time to come given the circumstances, and that they'd do a bit of due diligence before buying anything. But hey, regardless, good to hear the market is doing well!

Funny that developers can demand installments, but when handovers are delayed by a number of years, they face no repercussions...

Welcome to investing in UAE off-plan property.
Dubai: Keep paying those instalments… or you are at clear risk of forfeiting all rights to the property you bought.
How do you mean its overpriced? If the demand is outweighing the supply, then that should reflect in the price... surely.
Just to be clear - I definitely wouldn't invest right now. Many communities are now completely overpriced. Another example, villas on the palm are up c.40% over the past 12 months and there is very limited stock.
Another issue is that developers are using the COVID pandemic as a "force majeure" as per SPA... to justify construction delays and avoid paying any penalties/compensation to customers.
Whether a payment plan is construction progress linked or time linked, there is a handover date, in both cases.
There is a penalty article in SPA in case of delay in handover, in both cases.
Therefore, in the case of the progress-linked payment plan, while the payment is aligned with the construction milestones achieved, the developer does not get any leeway on the handover date.
That's an indication of the high-end luxury market.... not the overall market being 'nuts'.

There is still oversupply, with thousands of unsold off-plan units soon to come on the market.
The market is absolutely nuts right. I would say most areas are now on par or above 2014 peak prices. You could've picked up a Garden Home on the Palm for AED7m 12 months ago. They are now going for AED15m.
Found this quite informative, its the legal steps required in order to obtain a refund for any delayed/incomplete projects.

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