Lahore Real Estate Forum

Start NEW Topic Or Post Advertisment

                                                          
 
Back to Forum |

Billions of Rs. Drown in Dubai Real Estate,

(49632)
   Assad
Sunday, December 7, 2008 05:32 AM 
Reply: >
Billions of Rs. Drown in Dubai Real Estate

http://www.pakrealestatetimes.com/showthread.php?tid=1956
Jameel replied on Sunday, December 7, 2008 02:55 PM 

looks that Emmar and Nakheel will be history
rana replied on Sunday, December 7, 2008 03:58 PM 

If Nakheel and Emmar can be history, what about Bahria and DHA Lahore, could they be next? How worried should we be about this possiblity?
some replied on Sunday, December 7, 2008 04:07 PM 

Nothin would happen to DHA and Bharia, loads of ppl buying and selling. Look at DHA Valley scam :), developed in 15 years and ppl buying infact bidding. Plenty of buyers for both of these unless Pakistan collapses which is not so un-real. Pakistan is already a failed state, ppl who want to build and live its ok but who invested would lose big time.
Jameel replied on Sunday, December 7, 2008 04:46 PM 

Dont worry about Bahria and DHA these are survivors, dont forget the Collapse of realestae hapeened 4 years Back In Pakistan and for last 2 years prices are on Ground Level, Nothing can fall more than ground level
Coming to Emmar, in September 2008 when Emmar share was 6.5 Emmar issued the warning that its share is undervalued and it will consider buying Back its shares, Then we saw it never happened and Share continued falling down till it reached below 3 level still Emaar is not buying what does it indicate?? It shows it has no money, eaten up all and that warning was fake.
In UAE end user are not too many like Pakistan, the Locals are only 17% which are about 1 Million, they are scattered all over states and Govt has already made for them Big Houses 2,3 Kanal each and given to most of them free of cost. That had been enjoying even free water and electricty,
new observer replied on Sunday, December 7, 2008 07:11 PM 

prices are low now a days but not the accurate prices, keeping in mind the 25% inflation, so if anybody holding one house of 1 crore today will actually worth 75 lac only next year...
so its a gamble to invest in property now a days, only geniune buyers can support the market which they will not as sellers are still in the mindset of looting people so sellers will understand this when they will lose big time (millions) next year ...
if we talk about facts, interest rates are already v.high & due to tight monetary policies growth is not possible, but with high interest rates n tight monitary policies stability can be achieved. so policies of pak is going for stability not growth so dont expect any growth, if we see facts then either property will keep on loosing value or will stay the same , so buyers are in a win-win situation so buyers wait n dont buy ....
yesss replied on Monday, December 8, 2008 02:04 AM 

The entire world is going thru desperate economic times that are ONLY going to get worst in the next few years. There is no quick fix. The business world in the West is drying up.

Overseas Pakistanis are seeing their wealth vanish and will not have the cash they once had to spend on investment real estate, especially when real estate is now a bit risky. I expect to see real estate prices continue to drop for the next several years.
alpha replied on Monday, December 8, 2008 03:05 AM 

New Observer Sahab, AOA, as per my understanding of inflation, prices rises with inflation, instead of falling. A 1 crore house will be $1.25 crore because of inflation, instead of $0.75 crore.
Guest007 replied on Monday, December 8, 2008 04:28 AM 

This is all about credit crisis in the West. UAE had heavily invested in US and other parts of the West. Pakistan real-estate business is mostly on cash bases and as we also know that Pakistan always has been haven for foreign investors and still is. Pakistan problem is security, security and security……..
yesss replied on Monday, December 8, 2008 11:00 AM 

Foreign investors no longer have the cash to invest anywhere, even Pakistan. Yes, added to the world economic collapse, Pakistan is viewed as dangerous.

The world collapsed under 8 years of George Bush.
Dubai Property News replied on Monday, December 8, 2008 02:38 PM 

Dubai property market 'near collapse'

http://www.presstv.ir/detail.aspx?id=77547&sectionid=3510213

Property adverts show signs of panic selling in Dubai

http://www.propertywire.com/news/middle-east/property-adverts-panic-selling-dubai-.html

Dubai Speculators Quit as Lending Drought Bursts Desert Bubble

http://www.bloomberg.com/apps/news?pid=20601109&sid=a2jrSPqYhVzY&refer=home

Dubai property bust casts spotlight on Saudi Arabia

http://www.saudigazette.com.sa/index.cfm?method=home.regcon&contentID=

Dubai property boom gets hit by financial crisis

http://www.thehindubusinessline.com/blnus/10301910.htm

Dubai property boom halts as prices fall, jobs go

http://www.reuters.com/article/marketsNews/idUSLD

Dubai experiencing property price fall

http://www.propertyshowrooms.com/united%20arab%20emirates/property/news/dubai-experiencing-property-price-fall_105392.html

Dubai property prices to fall in Q4 2008

http://www.ameinfo.com/178047.html
new observer replied on Tuesday, December 9, 2008 06:47 PM 

dear Alfa,
in easy terms, inflation is recorded like this by economists, they take some essential items and note the difference of price of those items from previous year, like one basket of items come at Rs100 then next year the same basket is coming at Rs125. so increase is 25%
Property comes under investment not essential items for survival. According to some site the inflation in Pakistan is 25% this year but it doesnt mean that property prices are going high. This means that its getting difficult for one person to buy the essential items for living. In other words, rupee lost 25% of its value.
Property prices are DECREASING and buying power is getting less. So in otherwords, who ever is holding the property is getting a big time loss. do you own mathematics
hope it is clear !!!
abj replied on Wednesday, December 10, 2008 03:52 AM 

I have read a little about each country the way they look at inflation and is a little different depending on what country we talk about, but the common definition is what a unit of currency would buy a unit item over a specified time without getting into the nits grits of it.

So new observer, based upon your analysis, the other way to say it is, with 25 percent inflation, if I have 1 crore pakistani rupees, then in four years, it will loose 100% of its value at 25% devaluation or inflation anually, as the economist calls it? So one crore would not buy me anything in 4 years, or did I mis understand it?

also, wouldnt you consider housing or real property a basic necessity of life? Wouldnt the construction materials be affected with inflation or inflation is limmited to basic human needs or essentials or commodities as the economists call it ?
alpha replied on Thursday, December 11, 2008 02:07 PM 

Dear New Observer Sahab
I fail to understand your logic: that by classifying property as investment, property prices do not inflate with the rise in demand for land and commodoties that make up the house. Property and property-linked investments (such as REITs) have been a primary hedge against inflation.
>