About 40 days back there was hot discussion about Dubai property, and Mr Safwan, and Mr Jaffer were quite Optimistic about outlook of Dubai Property, Their Comments at this stage will be Valuable, It is not to tease them Just to learn that what is body Language of Investors in that area when Bubble has burst.
FT replied on Friday, November 14, 2008 03:31 AM
Flippers who were minting money from off plan properties are gone and people who are serious investors who like to invest for rental return or ling term gains are in. Properties that are in good location like Emirate Hills, Greens that give 6-10% return are doing ok.. I think it will take six months before things get to some normalcy. In the long run, property will prevail over stocks. Good news is that projects are not stopping, largest airport construction continues, Palm is on + Canal project will stay put that should be a relief to poor country like Pakistan where these hard working labout send there money back in foreign exchange.. |
Jaffer replied on Friday, November 14, 2008 01:48 PM
Daer Jameel: you are right that at this stage its not enough buyer in the market and its bit slow since last couple of months and may continue another 2-3 months.
consider it as the same as happening in Pakistan. DHA prices were halt in last two years and now gone down in last six months. although thers are buyers but uncertainity is not allowing them to invest in Pakistan.
In Dubai or other Emirates estates, there is no such thing that will keep the real estate slow or take down. Billions of dirhams of projects are under way and more are pouring in. its a matter of time, once the clouds of economic crisis will be settled in Europe and USA than you will see the same boom again (hope you know there is no liquidity cirsis in UAE market)
For DHA i cant say anything, since there are so many factors that not only taking real estate down but almost every business. |
Jameel replied on Saturday, November 15, 2008 10:12 AM
Dear Jaffer Shahib, Thanks for input my feeling is situation is not that "casual", I think Dubai Investors are standing at the same point where Lahore real estate was in Mid 2005, I mean in Lahore property fel form 80 Lac to 36 Lac [DHA 8 file] and 70 Lac to 24 Lac[DHA 7 file], exactly same can happen in Dubai in one year time.
In 2005 some of the optmistc people had same feeling as you have of Duabi now, My research of previous prperty slumps tells that when down trend starts it stays for at least 5 years, |
