The new off-plan development by Emaar sold out in one day
To say that I am confused would be an understatement... One day the sky's falling and the financial apocalypse that is the property meltdown is upon us.. Another day, 542 units of a development, with a price range of 1.1 million AED-6 million AED, sell out in a day....
!!:confused2:
Haven't you seen all the local press articles in the last few months? All with 'experts' telling us property is on the rise, rents are up, apartments are selling and everything is wonderful in the Dubai property market.
Maybe not. Given the lack of accountability over stalled and cancelled projects here I'm surprised at the sheer number of people that want to hand over large amounts of cash for what is a computer generated drawing of something that may or may not be finished. Things change here on a whim and to me that makes anything off plan particularly risky. I wonder how many of those in the queue got burnt a few years ago...
To be fair, an Address-branded Emaar property in such a prime location is probably as safe an investment as you're likely to get here.
However, I do wish that it turns out to be a complete disaster for those investors who sent their maids and office boys down to queue outside for 3 days on their behalf and they not only lose their investment, but all their money, their cars, their properties, and their wives run off with their gardeners.
True, the development does seem to be prime etc.. Emaar is the better developer in the market, granted that might not be saying much seeing the competition out here. At least they have international projects bolstering them. I guess this deal isn't an indicator but with ALL the issues, pre/post development, coming up here, I just don't get all this... I mean it would be one thing for it to get sold eventually, but on the first day.. oh well crazier things have happened here, I guess lol ..
It could actually have sold twice over on the first day, there were a few hundred people still waiting once it had sold out.
A quick *** packet calculation, 2.2 million for a studio serviced apartment in an Address Hotel, assuming it's rented out 300 days a year for 10 years, that means you'd need to charge 733 Dhs per night. In reality, the price per night would be much higher than that. Take into account service fees and tourist taxes, you're still looking at sub-10 years until your investment pays for itself. Unless I've missed something of course, property isn't really my area of expertise.
you're still looking at sub-10 years until your investment pays for itself. Unless I've missed something of course, property isn't really my area of expertise.
Re-read your first sentence, I'm guessing most will be looking to flip it to one of they few hundred asap. Although there are reports that the political turbulence elsewhere in the region is helping boost the property market here, as folk are getting their money out of their home countries. Like everything here though, it's hard to ascertain actual figures.
Check out Dubizzle. Most of the units are straight back on the market with up to 25% premium. Not a bad investment when you only have to put down a deposit. I doubt anyone buying on saturday was looking for a long term investment - the biggest money makers will be the flippers.
Panorama is another development (at The Greens) that sold out on the launch date in May. Construction already started. I think EMAAR are one of the safest to invest your money with if you really wants to get into the property market in Dubai.
Yeah, Emaar has their stuff together.. Internationally too, they have a good reputation... turning a long-term investment into a short-term investment, is what got the global real-estate market (and the global economy) all screwed up in the first place. Has anyone really thought about the whole over-supply issue, I mean come on... really, it doesn't take a degree in economics to figure out there are far too many units on-sale/under development...
Within the middle east, the UAE is the most stable country in the region. So those who are leaving in the other middle east countries would invest here. I certainly would if I were in their shoes and had no other options to diversify.
People are somewhat limited though. There are other markets that are less risky and provide good returns, but I agree that it is easy to manage your investment if you are nearby not far.
The simple principle of market return still applies. If you can get the same return in two markets why would you bet in the one that carries more risk ?
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