Opinion required: Would you invest in real estate

[jojo]

Originally Posted by Sean_C

the question is how long is it going to take for the real estate sector to revive to a respectable level....

Its gonna pick up around April 2011!

Jo xxx

[Madam Mim]

I was going to say how long is a piece of string but Jojo better answer - April 2011 it is then!

[Madam Mim]

Sorry Sean C but have a look worldwide does anyone know???I would say Dubai has been hit rather worse than most places - without knowing all your circumstances hard to say what you should do - if Dubai is a safe haven for you then I would still I suppose say don't buy now - if you have other options I would look there

[Sean_C]

Originally Posted by jojo

Its gonna pick up around April 2011!

Jo xxx

I usually am skeptical about projections that involve April ans specifically the first day of that month!

Why do you reckon that April 2011 might be month that Dubai's Real Estate Sector picks up? Any specific logic?

[jojo]

Originally Posted by Sean_C

I usually am skeptical about projections that involve April ans specifically the first day of that month!

Why do you reckon that April 2011 might be month that Dubai's Real Estate Sector picks up? Any specific logic?

No logic that would apply to Dubai, but these things nowadays tend to be pretty much worldwide. They predict that property prices will/are creeping up a smidgen at the moment due mainly the lack of properties that are actually on the market. So altho there is a shortage of buyers, there is an even greater shortage of property, so supply and demand is increasing it! This is gonna continue or prices will even out until next pring when I think people will start to try and sell again, this will bring a reduction as it will flood the market again somewhat!

I believe this "second wave" "double dip" will continue through 2010 and eventually sort itself out by 2011! April is generally the time for house selling/buying - in the UK of course, but then most things seem to eminate from the UK/USA and spread where those UK expats go

Jo xxx

[titirangi]

Originally Posted by Sean_C

I need your opinion on whether, despite the economic downturn you would still consider it safe to invest in immovable property like an apartment.

You could add Peter Cooper to your reading list, he has provided a reasonably objective view on his blog:

Dubai property inventory: villas four years, apartments three ArabianMoney.Net

[marc]

There are signs of recovery now, mid 2008 was diabolical and prices have already picked up 20-30% in the best areas.

off plan is still completely non existent, but the good areas are seeing a lot of transactions - mainly Marina, Palm, Downtown Burj Dubai and consolidation (credit note) sales of canceled / on hold projects.

Banks will need to lower their interest rate for alot more people to be able to start making moves, but Barclay's has just started lending again after 1 year absence so that's a sign of things to come.

[waheed77]

Originally Posted by Sean_C

the question is how long is it going to take for the real estate sector to revive to a respectable level....

It's very hard to predict a specific time when the real estate sector will revive in UAE or the rest of the world, but one thing is for sure, the boom in the real estate sector that we witnessed till last year is something that anyone can only deam of now.

But since I'm working in a bank's "Mortgage Department", we have noticed a sudden rise in the real estate transactions in last three months, as compared to the first two quarters of this year when everybody was trying to sell the property but there were no buyers in the market.

Because of the substantial downfall in the prices, end users are interested in buying especially when they compare the monthly installment of the mortgage with the rent they are paying.

if I am asked whether I would buy a property in Dubai in this market situation??? my answer would be definitely yes......... but subject to if I am planning to stay and work in UAE for next at least five years

[marc]

people who bought when the sh** hit the fan have already made a great return and huge amounts of money.

the more risks you take the better return you will get..

[merlin the learned]

Originally Posted by Sean_C

why isnt anyone responding?

Reply delayed by uncontrolled hysterics and laughter by all present...we thought you said "invest in Dubai" but we must be mistaken