Safe as villas; How well insulated is DXB?
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Cyberbird,
You cite one villa in the Springs that's proving hard to sell and now this is suddenly the yardstick. Why then are there on average three separate, extensive property supplements every day the the Gulf News alone? Or do you think that's propaganda as well?
Since you quoted the Springs as an example, let me explain the facts. At launch, an average townhouse in the Springs was selling for about Dhs800 000. I know - I was there (were you?). Those same units are now selling for over Dhs4 million, with some on the market for over 5 million. You do the math (properly, this time).
Arabian Ranches are now selling for approx Dhs2400/sqft on average. At launch, they were about Dhs500/sqft. I will concede that the glory days are probably over and that you had to buy at the very beginning, but a lot of people did and made some handsome returns for what was a very risky undertaking at the time.
Unlike your barely comprehensible drivel, the above are indisputable facts. Now please, refrain from talking about things you quite clearly know nothing about.
You cite one villa in the Springs that's proving hard to sell and now this is suddenly the yardstick. Why then are there on average three separate, extensive property supplements every day the the Gulf News alone? Or do you think that's propaganda as well?
Since you quoted the Springs as an example, let me explain the facts. At launch, an average townhouse in the Springs was selling for about Dhs800 000. I know - I was there (were you?). Those same units are now selling for over Dhs4 million, with some on the market for over 5 million. You do the math (properly, this time).
Arabian Ranches are now selling for approx Dhs2400/sqft on average. At launch, they were about Dhs500/sqft. I will concede that the glory days are probably over and that you had to buy at the very beginning, but a lot of people did and made some handsome returns for what was a very risky undertaking at the time.
Unlike your barely comprehensible drivel, the above are indisputable facts. Now please, refrain from talking about things you quite clearly know nothing about.
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Having had some conversations with local estate agents and one very worrying one with a friend in the banking sector (who is planning redundancies and other cuts on behalf of a major UK bank), property and Dubai LLC are slowing at an alarming rate.
The plethora of property supplements could be taken as an increase of supply as more property is for sale. New projects are relying on foreign investment in a world short of cash. As others look to flip properties to reinvest in the newest and smartest, their properties become harder to sell as the grass root demand dries up. Currently asking prices are not being 100% realised as the choice increases and payments deadlines have to be met and the vendors offer more deals to a more careful/sceptical clientele.
After the positive spin of the massively negative bailouts subside and reality starts to set in liquidity will dry up. Banks already have stricter guidelines for loans/mortgages and LTVs will reduce towards 50-60%. Loan rates will increase as inflation continues to increase and affordability will decrease... properties eventually will not sell. People will begin to default on their mortgages and the banks will have to repossess. Rental demand will increase but so will the supply to the rental sector. As the supply increases the rental prices will decrease deflating the market.
There is no doubt that there are those who have made a killing out of the property boom but that was then, now is very different.
The 'glory days' are over as journeyman says.
The plethora of property supplements could be taken as an increase of supply as more property is for sale. New projects are relying on foreign investment in a world short of cash. As others look to flip properties to reinvest in the newest and smartest, their properties become harder to sell as the grass root demand dries up. Currently asking prices are not being 100% realised as the choice increases and payments deadlines have to be met and the vendors offer more deals to a more careful/sceptical clientele.
After the positive spin of the massively negative bailouts subside and reality starts to set in liquidity will dry up. Banks already have stricter guidelines for loans/mortgages and LTVs will reduce towards 50-60%. Loan rates will increase as inflation continues to increase and affordability will decrease... properties eventually will not sell. People will begin to default on their mortgages and the banks will have to repossess. Rental demand will increase but so will the supply to the rental sector. As the supply increases the rental prices will decrease deflating the market.
There is no doubt that there are those who have made a killing out of the property boom but that was then, now is very different.
The 'glory days' are over as journeyman says.
Last edited by Marooned; 15th Oct 2008 at 06:08.
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Well somebody's buying - deals registered with the Dubai Land Department during Cityscape were nearly 2.5 billion dirhams ($681 million) in 2008, up from 2.05 billion dirhams last year and 657 million dirhams in 2006. 
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An extra 70 billion Dhms ordered into the economy to provide liquidity... Car loan applications suspended for 48 hours due to lack of liquidity (press today)... All this is doing is inflating an already over inflated bubble.
To keep the pyramids rising more and more money will have to be injected into the economy to keep it afloat but as the grass roots fail to buy in... it will fall as many others already have.
To keep the pyramids rising more and more money will have to be injected into the economy to keep it afloat but as the grass roots fail to buy in... it will fall as many others already have.
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all right then, "journeyguy" - i looked up the numerous Villa Offers in Springs myself -
and i found loads (!) of 3-4bedroom villas in the market between 2,3 and 2,8 mill. Dhms - but i can't see ANYBODY really paying anything near the price of 4 millions there, as you posted - check it out yourself:
Villa For Sale at Springs 8
- Location: The Springs -
- Type 3Middle
3 bedroom townhouse )
+ living + dining + Study Room
- double story Central A/C
- build up area ( 2,450 ) S.F.
- plot size 3000 S.F.
- price is 2,350,000 Dirham ´
or
Villa For Sale at Al Reem 3
- Location: Arabian Ranches
- Type1Middle 4 bedroom townhouse )
+ living + dining + Maid R.
- double story Central A/C
- build up area ( 3,300 ) S.F.
- plot size 5000 S.F.
- price is 2,800,000 Dirham ´
and these are all asking prices - the REAL prices are normally some 10 % lower!
And believe me, I know real estate well &long enough, as my property is in Europe/ south France &North Italy & and i would NEVER EVER want to buy or own anythin' in such an overrated & dreadful place like DXB!
and to answer Your question, why there is so much crap/ sorry: Real estate ads in every Weekends Gulf News (which is fully of biased propaganda btw) :
it's so obvious: if You can't sell anything, You must shout louder on the oversupplied market - looking for more stupid & short-sighted sheeps, to get your money from!
If it would be a sellers market, there wouldn't be any need for all these outright ridicolous "Mediterrean look-alike print-ads" which are in such harsh contrast to the poorly build reality - just have a look at Mirdiff build-ups - and who want's to live there anyway??
Have You ever lived at a place at a lake in North italy (like i do) or been induldged in the overwhelming beauty of the french riveria with all its facettss& heritage -I bet you didn't
That's why i feel really sorry for You
and i found loads (!) of 3-4bedroom villas in the market between 2,3 and 2,8 mill. Dhms - but i can't see ANYBODY really paying anything near the price of 4 millions there, as you posted - check it out yourself:
Villa For Sale at Springs 8
- Location: The Springs -
- Type 3Middle
3 bedroom townhouse )+ living + dining + Study Room
- double story Central A/C
- build up area ( 2,450 ) S.F.
- plot size 3000 S.F.
- price is 2,350,000 Dirham ´
or
Villa For Sale at Al Reem 3
- Location: Arabian Ranches
- Type1Middle
4 bedroom townhouse )+ living + dining + Maid R.
- double story Central A/C
- build up area ( 3,300 ) S.F.
- plot size 5000 S.F.
- price is 2,800,000 Dirham ´
and these are all asking prices - the REAL prices are normally some 10 % lower!
And believe me, I know real estate well &long enough, as my property is in Europe/ south France &North Italy & and i would NEVER EVER want to buy or own anythin' in such an overrated & dreadful place like DXB!
and to answer Your question, why there is so much crap/ sorry: Real estate ads in every Weekends Gulf News (which is fully of biased propaganda btw) :
it's so obvious: if You can't sell anything, You must shout louder on the oversupplied market - looking for more stupid & short-sighted sheeps, to get your money from!
If it would be a sellers market, there wouldn't be any need for all these outright ridicolous "Mediterrean look-alike print-ads" which are in such harsh contrast to the poorly build reality - just have a look at Mirdiff build-ups - and who want's to live there anyway??
Have You ever lived at a place at a lake in North italy (like i do) or been induldged in the overwhelming beauty of the french riveria with all its facettss& heritage -I bet you didn't
That's why i feel really sorry for You
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Can you provide links to where these are advertisied? I have to say looking in the papers I can't find anything that cheap that is real, not villas anyway.
Every time you phone they say the cheap one is sold but they have some more at (add huge figure here).
Every time you phone they say the cheap one is sold but they have some more at (add huge figure here).
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Cyber,
Looks like you've got a few people excited for nothing - have the guts to quote page/estate agent/date, etc then you might get some credibility.
First page I turned to in the Freehold section of the Gulf News, Oct 16: pg68 - Deyaar Properties -the Springs B.U.A. 2734sq.ft S.P. Dhs5 800 000 all inclusive.
That's Dhs2120/sqft.
Opposite page: Wind Properties - The Springs 15, Type 4M, 2BR+S, 1693sq.ft, partial lake view Dhs2 850 000. Sorry, couldn't find any 3BR places under 3 mill.
Page66, same publication: Group7 Properties - Arabian Ranches, Al Reem 1, 3BR, Type 3M, B.U.A. 2456sq.ft, 4.2M net to owner.
Must also mention that both Springs and Al Reem are not freestanding villas, but semi-detached villas, with a smallish garden.
So Cyber, we are all eagerly awaiting your reference source. Oh, and please don't waste your time feeling sorry for me - I've done very nicely out of the Dubai property market, thanks. Think I might pick up something cheap in Europe now, what with falling house prices and (relatively) cheap Euro.
Looks like you've got a few people excited for nothing - have the guts to quote page/estate agent/date, etc then you might get some credibility.
First page I turned to in the Freehold section of the Gulf News, Oct 16: pg68 - Deyaar Properties -the Springs B.U.A. 2734sq.ft S.P. Dhs5 800 000 all inclusive.
That's Dhs2120/sqft.
Opposite page: Wind Properties - The Springs 15, Type 4M, 2BR+S, 1693sq.ft, partial lake view Dhs2 850 000. Sorry, couldn't find any 3BR places under 3 mill.
Page66, same publication: Group7 Properties - Arabian Ranches, Al Reem 1, 3BR, Type 3M, B.U.A. 2456sq.ft, 4.2M net to owner.
Must also mention that both Springs and Al Reem are not freestanding villas, but semi-detached villas, with a smallish garden.
So Cyber, we are all eagerly awaiting your reference source. Oh, and please don't waste your time feeling sorry for me - I've done very nicely out of the Dubai property market, thanks. Think I might pick up something cheap in Europe now, what with falling house prices and (relatively) cheap Euro.
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Cyber,
Everybody's still waiting for your source on those bargain villas you wrote about. So, anytime you're ready, could we please have estate agent/phone #/ref #/etc. Many thanks.
Everybody's still waiting for your source on those bargain villas you wrote about. So, anytime you're ready, could we please have estate agent/phone #/ref #/etc. Many thanks.
