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Saturday, November 22nd, 2008
The first real signs that Dubai’s property market is not immune to the realities of affordability and the global financial crisis have come to light. In a report from HSBC Holdings PLC, it’s revealed that month on month prices for resale homes fell by as much as 19% in October from September.
Their findings relate only to the second homes market, but when you read this news in light of further developments in the property market you begin to see that Dubai’s real estate landscape is changing. For example, developer Emaar has come up with a creative way of extending and diversifying finance options for would-be buyers of new homes. Having seen its share price fall 79% in less than a year, the company is very keen to keep liquidity in the market that it dominates, no doubt.
So, property prices in Dubai are fallings as the market is squeezed – but what does all this mean for the longer-term health of the real estate sector, what does it mean for those who have bought, those who want to rent and those considering an entry into the historically high returning property market in Dubai?
As we have pointed out before, Dubai is something of a dichotomy. On the one hand it is the true embodiment of sophistication and advancement, but on the other hand it is old fashioned and corrupt. And nowhere is this complete division more keenly felt than in the property market.
When buying property in Dubai it really and truly is a case of caveat emptor – i.e., ‘let the buyer beware,’ because whilst on the surface the market it glitzy, glamorous and sophisticated, underneath it can be a hotbed of bad deals, poor construction and extreme lack of transparency.
If you are thinking about buying a home or investment property in the emirate we can of course see the appeal, but as this article will show you, you need to tread very carefully indeed to ensure that your purchase is a smooth and successful one.
If you’re moving to Dubai and thinking about your accommodation options – or you’re interested in buying an investment property in Dubai perhaps, chances are you’ll be thinking about your home financing options and also the additional costs that a home purchase will incur.
In this guide to mortgages and buying costs in Dubai we will cover everything you need to know about getting finance in place to make a purchase in Dubai. We will also tell you about the hidden costs that you need to be aware of when you make an offer for a resale property, and what you need to watch out for if buying off plan and paying in instalments.
To cut to the chase and get the facts you really need, read on…
The thought of tax-free living in a paradise destination in the sun is just too good an opportunity to pass up for many! And if you’ve been seduced by the thought of living the high life in Dubai – we can’t blame you! If you’re on your way to the emirate and are in the process of sorting out your accommodation options, this article makes for essential reading.
If you’re arranging terms and conditions of your employment, a large part of your negotiation should centre upon your accommodation options, because renting property in Dubai is nothing if not expensive.
Many employers who are headhunting and relocating staff to the region are willing to accommodate you for a given period, and others offer a fixed sum towards rental accommodation. There follows all the essential advice you could possibly need about how to find and rent property in Dubai – from getting these negotiations with your employer right, to finding the best bargains available and negotiating with your landlord.
Is the Dubai property market in decline? There are very mixed messages coming from the sector with analysts saying that at best it’s due a negative correction but at worst it could crash. And with a relative lack of major oil revenue to back up Dubai’s government, which partially owns many a developer and many a bank from which developers have sought loans, this could undermine Dubai deeply.
On the other hand, the government, developers and even municipal bodies are talking up the market, saying that there is still a lack of completed real estate available on the market, and that as a result rental rates are rising all the time creating a potentially very profitable haven for investors.
So what of the celebrity names propping up Dubai’s property market? Are they simply par for the course in this, the most glitzy and glamorous real estate market in the world, or are they in fact being shipped in to distract our attention for the lack of viability in the concept of ‘investing in property in Dubai for serious profit?’
See all articles about Property in Dubai...
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