Real Estate Information

Luxury Real Estate Information


Rancho Palos Verdes, California Homes
Palos Verdes, California Homes
South Bay, California Homes
Luxury Mexican Beachfront Homes

Featured Properties


Oceanfront Estate Near Trump National

Related Information


Loan Information
Real Estate Information
Mortgage Refinance Information

Dubai or not to Buy? A Short Assessment of the Dubai Property Market


Never has there been such an ambitious and creative drive to establish a property market as has been witnessed in Dubai over the past three years. Running short on oil reserves, Dubai's crown prince, Sheikh Mohammed Al Marktoum, set out to turn Dubai into the financial, commercial and tourism capital of the Middle East and in the space of three years he has more than succeeded. The country's GDP has expanded by 17 per cent over the past year and HSBC Bank estimates that there is $42.5 billion worth of projects under construction, compared with $20 billion for the rest of the neighboring oil states put together.

The result has been the rise of Dubai as the world's most glamorous property investment market. Nothing in Dubai is understated. The tiny emirate, that only five years ago was nothing more than a simple fishing village has suddenly become the Manhattan of the Middle East. Following the mantra 'bigger is better' Dubai has proudly announced the world's first seven star hotel, Burj Al Arab and is set to construct the world's biggest shopping mall, the first underwater hotel and amazingly, the longest indoors ski slope.

Already the annual number of visitors stands at 5 million and is set to rise to 10 million by 2007. The scale of development has been unprecedented with apartment blocks being constructed by the dozen and selling out within days to hordes of zealous investors prepared to queue overnight to bag a bargain in Dubai. The projects being released are some of the most inventive and ambitious the world has seen, with man made islands such as The Palm and more recently The World capitalizing on the attractions of beach front living and redefining the world's geography in the process.

With real estate as out of the ordinary as this, it's not difficult to see why Dubai's property market is attracting such large-scale international interest. There really is nothing like it and it seems everybody who's anybody will have a piece of Dubai. Dubai's more exclusive developments are being snapped up the celebrity classes and the world's elite. Ageing English rocker, Rod Stewart is already the proud owner of Britain [The World's miniature Britain that is!] and villas along the Palm are being bought by sports stars, film stars and anybody with upwards of ?1.5 million to spend on a private waterfront retreat.

If so much has been achieved in three years, where is Dubai to go from here? Nakheel, the company behind the extraordinary Palm and The World projects already has its eye, literally, on a new development. Dream City, like the Palm is also a series of man made islands but out sizes the Palm significantly. When finished, Dream City will form the shape of an eye, with the residential element on giant eyelashes extending out into the Persian Gulf. Villas at Dream City start at ?425,000 for around 371 sq m (4,000 sq ft) of accommodation. Townhouses start at ?200,000, while one and two-bedroom apartments start at ?150,000.

For the property investor seeking a lucrative return, a new market is always a risky one and the fear is that the market may collapse soon after it has taken off!. With plenty of anecdotal evidence to suggest that property prices in Dubai are rising by as much as 60% in one year, it's tempting to rush straight in and grab a piece of the action. But the canny investors will have to consider if it is too much too fast.

The pace of the property market in Dubai makes is a speculators dream. It's not unheard of for properties to have been transferred up to a dozen times even before the building is complete. Many opportunistic investors are booking 10 to 20 villas in new developments, selling them at significant profits before they have been completed.

Cashing in on this and perhaps in an effort to cool the market, builders are charging a fee of up to 7% each time a property is transferred and lending institutions are trying to keep some control on the market by agreeing to finance only the original sale price. In the secondary market, prices can exceed the original price by 10-70%, depending on the development's popularity.

All the indications are suggesting that the initial hype is easing and prices are settling. A year and a half ago 900 houses in one development sold out in 7 hours. Many believe that demand will continue to be sustained and prices will continue to rise, though not at the frantic rates they have been rising over the past two years.

In comparison to other new and emerging markets, such as those in Central and Eastern Europe, Dubai appears to be a more attractive investment. Prices in the middle market are comparative to those in Eastern European cities such as Tallinn and Krakow. Unlike these countries Dubai has the sunshine factor and a glamorous edge, which is surely contributing to the high immigration from Europe, the Gulf Region and the Indian subcontinent. Over 100,000 extra people are expected to arrive in Dubai every year. Such large-scale immigration is sure to sustain the property rental markets.

Other property markets are seeing rental yields drop through the floor. Too many investors buying up properties and not enough tenants to rent them! Ireland, Britain and many of the New European capital cities are seeing yields drop to below 3%. In Dubai, rental yields have dropped from a very healthy 8-9% but are now holding firm at 6-7%. The fact that in Dubai rents are paid in advance, sometimes up to one year in advance, is surely a motivating factor for those considering a buy-to-let property in Dubai. On the downside, service charges on new development can be high, anywhere up to £4000 per annum and may be requested by the developer upfront!

Despite the current boom and huge immigration into Dubai cautious investors are raising understandable questions about the security of ownership in the UAE. As yet, no law has been passed to confirm the right of foreigners to own property in any of the projects launched to date. However, the UAE allows individual emirates to issue their own legislation to regulate ownership of real property. While Dubai is committed to encouraging overseas investment, they rule by decree and decisions can be changed overnight the whim of the current ruler. The government have promised that freehold would be granted in the near future. When this happens it is likely to further boost investor confidence in the Dubai property market.

If the property market in Dubai is to develop with any degree of stability, capturing the interest of second homeowners and expats seeking to relocate is essential. If the market continues to be speculator driven, the possibility of a speculative bubble is not unlikely. A revision of property ownership laws for foreign investors should encourage a more stable property investment climate, helping to avoid any crash that might be caused by a quickly exhausted investor base of opportunistic speculators.

Tracey Meagher operates and maintains a number of Property Newsdesks. She regularly writes articles and features on buying property abroad. For more information on property in Dubai, visit http://propertynewsdeskdubai.blogspot.com. She also owns PropertyAuthors.com, an property investment epublishing company offering free pdf magazine articles on buying property abroad. Articles area available at http://www.propertyauthors.com


MORE RESOURCES:
This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news


Forbes

Is The Local Real Estate Market Heating Up? Eight Signs To Watch For
Forbes
Understanding what the local real estate market is doing is remarkably important for everyone involved. Homebuyers and sellers need to know whether homes in certain price ranges are staying on the market for months — or clearing within days. Real ...



Minneapolis Star Tribune

Omnibus tax-bill veto played big role for real estate interests
Minneapolis Star Tribune
Although the Minnesota Legislature enacted several property-related laws during the recently completed session, the biggest news for the state's real estate industry was a change that didn't happen. New measures affecting mortgage lending, government ...



Forbes

Real Estate Titan Larry Silverstein On The Opening Of 3 World Trade
Forbes
This month, nearly 17 years after the 9/11 attacks and 10-years after breaking ground, Silverstein Properties opened the fourth of five office towers planned for the World Trade Center site. So far consulting firm McKinsey, stock exchange IEX and ...



Politico

Zinke met with real estate developer, Halliburton chairman at Interior office
Politico
Interior Secretary Ryan Zinke met at department headquarters in August with Halliburton Chairman David Lesar and other developers involved in a Montana real estate deal that relied on help from a foundation Zinke established, according to a participant ...
Emails Raise Ethics Questions About Zinke's Ties To Montana Real Estate DealHuffPost

all 159 news articles »


Forbes

A Faster And Easier Way To Finance Real Estate Investments - Forbes
Forbes
For aspiring real estate investors and those looking to scale property investment businesses, transactional funding could be the ideal type of capital.
The 4 Best Real Estate Mutual Funds for Income Investors ...Investorplace.com
Housing Starts Hits 11-Year High: 3 Real Estate Funds to Buy ...Nasdaq

all 4 news articles »


WAVY-TV

Real Estate: A Seller's Market
WAVY-TV
PORTSMOUTH, Va. (WAVY) - It's a seller's market trend in Hampton Roads Real Estate, but what does that mean? Kathleen McKone Realtor and Owner of the Kathleen McKone Realty group joined Chris Reckling on The Hampton Roads Show with an ...



Chron.com

Real estate briefs: Halliburton Westchase campus sells; developers start 2 spec industrial projects
Chron.com
A local private investment group has purchased Halliburton's former Oak Park campus at 10200 Bellaire Blvd. at the Sam Houston Tollway in Westchase. JLL handled the sale along with Williams & Williams auctioneers. The 48-acre campus includes a ...



National Real Estate Investor

Why the Real Estate Industry Needs More Equity, Less Debt
National Real Estate Investor
Real estate development in the U.S. has historically been driven by entrepreneurs with great ambition and visions of grandeur, but thin pocketbooks. Lacking their own controlled or discretionary capital, these developers needed to sell their ideas to ...



theberkshireedge.com

Welcome to Real Estate Friday!
theberkshireedge.com
Weekly real estate transactions for Berkshire County and northern Litchfield County · Market Perspectives – The real estate market was down in the first quarter of 2018 but the future is promising, according to the CEO of William Pitt and Julia B. Fee ...



CNBC

Millionaire real estate developer: Here's how to find the next hot neighborhood
CNBC
Sidney Torres first got into real estate in 1997, when he bought a $40,000 home near Tulane and Loyola University, successfully flipped it and used the profit to buy the house next door. Over the past two decades, the real estate mogul and host of CNBC ...


Google News

home | site map
© 2006 TIGER MEDIA