Opinion required: Would you invest in real estate

[Iron Horse]

I believe you might be ok with investing in real estate here in Dubai. However, I would not pay the prices they are asking. Prices are still high in my opinion because those looking to sell are trying to break even or make a little even in these times. Most people who have purchased property in Dubai are not in a state of panic and can hold out for the price they want. Those who were trying to make a quick buck and couldn't really afford things here have been weeded out, either by leaving or selling low enough that someone snatched it up long ago.

If you are looking for a long term investment and can do so, I would purchase. Just watch out where you purchasing as there are many hidden fees everywhere for "district cooling services". Also look for the quality in the construction. How long did it take to construct this building and when was it done? Instead of five bolts did they just use three or four to save money? Is there mold/mildew in the stairwells? The list goes on, but there are good places here in Dubai.

[desres]

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....

If u are looking to invest in property .. u should look elsewhere

Maybe in a country where they have
Laws in place to protect investors
Where the property prices are still viable & not way overpriced
In a country where u will be allowed Resident Visa as an investor { longer than 6 mths}
Where the demand for properties outways the supply
Where u will get tenants if you are 'buying to rent' instead of your property sitting empty & your having to still pay maintenance fees etc
Just look on some Real Est websites & see exactly how many Apts / Villa's are available & empty
Research on property forums, to get the experiences of others that have invested there
Save yourself the headache

[merlin the learned]

Originally Posted by desres

If u are looking to invest in property .. u should look elsewhere

Maybe in a country where they have
Laws in place to protect investors
Where the property prices are still viable & not way overpriced
In a country where u will be allowed Resident Visa as an investor { longer than 6 mths}
Where the demand for properties outways the supply
Where u will get tenants if you are 'buying to rent' instead of your property sitting empty & your having to still pay maintenance fees etc
Just look on some Real Est websites & see exactly how many Apts / Villa's are available & empty
Research on property forums, to get the experiences of others that have invested there
Save yourself the headache

Could'nt have put better myself with an added a big codicil on right of perpetual Domicilli and sellers proof of ownership.

[titirangi]

"Where the demand for properties outways the supply "

And herein lies a big issue for expat investors. Driving around Abu Dhabi and Dubai it does not take long to figure out the sheer volume of units that are yet to be released. When these are eventually released (next 18mo), supply issues that are already very clear on dubizzle/GN will seem like the good old days.

Where are all the new industries that are required to support all the expat families earning 500kpa+ that can afford to rent at even current rates?

Market fundamentals do not support even existing price levels, there are insufficient initiatives to drive GDP which ultimately determines personal incomes and ability to spend. The days of russian mafia overheated speculation are over, when market equilibrium is eventually reached only then can sustainable growth be achieved.

[marc]

Anyone looking to invest here should look at the big picture and take a moment to think about it.

Its far from perfect but this place is literally 10 years old even less development wise.

[webjunky]

how long? it's anyone's guess. i'd say 6 years minimum. dubai fundamentals are really flawed. until those are fixed, real estate values are going nowhere but down. what you see now is just short term speculation