Monday, 20 October 2008

Over 40% say it is still a good time to buy property in Dubai

Since the recent dramatic events in the financial world around the globe, the organisers of this weeks' Worldwide Property Show being held in Dubai have just announced the results of a recent survey on investor confidence conducted in association with YouGovSiraj.

The survey shows an optimistic view, with one fourth of respondents feeling that the global crisis will only have a minor impact on the local UAE Property Market. 56% surveyed felt that there may be a slowdown but will not have the same impact as in Europe and US.

The survey further revealed that Dubai residents are more confident than those living in Abu Dhabi and Sharjah however 40% of all respondents felt that now is still a good time to invest as they can pick up a bargain. 16% of respondents were not sure and were sitting on the fence.

When deciding on the developer -value for money, ability to adhere to promises and transparency of information are the attributes that people look at. The least important attribute is public information available either on a website or in the media. This indicates that consumers are anxious about cost of ownership and the inherent investment value of the property.

Respondents were also asked what were their top destinations for real estate investment around the world - 55% favoured Asia, 40% for Middle East, 32% for Europe & UK and 27% for North America.

George Betz ,International Sales Director at Dubai Shows Limited organisers of the Worldwide Property Show said: "Considering our survey has literally been completed in the last few days since the global meltdown, it is very encouraging to see that people still understand the merit in investing in real estate and that now is still a good time to buy as prices are low."

Betz continued: "The Worldwide Property Show which started in 1995 has received a record number of developers and estate agents wishing to participate in this season's show and will feature 85 exhibitors from 32 countries including USA, Egypt, Morocco and UK, as well as emerging Asian markets such as Philippines and Thailand and a very wide variety of UAE developers and agents."

Mike Bridge, Business Development Director at Dubai Shows Limited said: "With developers feeling the pinch, it is definitely a buyers market with great opportunities to select prime property in some of the best locations in the world. You cannot take away the benefits, even in a crisis, of a fabulous city or beautiful coastline."

Bridge added: "It is also good news that the banks have recently received Governments' support and are more likely to be in a position to fund property investment again".

The Worldwide Property Show and UAE Developer, the UAE's longest running consumer property exhibition opens 23rd to 25th October 2008 at the Grand Hyatt Dubai.

Original at:


Thursday, 16 October 2008

Cityscape, World's biggest real estate investment expo opens in Dubai as growth slows

Cityscape Dubai, the largest business-to-business real estate investment and development event in the world, opened today amid news that Dubai house price growth slowed to 16% in the second quarter of this year.

In an earlier version of this story, Property Wire incorrectly cited a report by Colliers stating that Dubai property prices fell by 16%. Colliers actually said that the house price growth had slowed down to 16% in the second quarter. Property Wire regrets the errors and the story has been amended to reflect the accurate figures.

The figures were met with an intake of breath as they had been rising sharply and although analysts have been predicting a slowdown few expected such a drop at this time.

The figures, from leading international property consultants Colliers, indicate that Dubai's six year property boom is at an end with the company predicting figures will remain flat for at least 12 months, probably until 2010.

'In the first quarter, the average price went up by 43% while in the second quarter they (slowed to) 16%,' said Ian Albert, a regional director at Colliers International. He attributed the drop to seasonal trends and a possible inkling among investors of the looming credit crunch.

Colliers said the main threat to house prices was liquidity in the financial system. A shortage of cash has already doubled the interest rate that banks charge each other in the last four months to more than 4%. Many home finance companies have restricted the amount of money they lend to 65 or 75% of the property's value, and home finance rates have risen to about 8%.

'Future performance will be hinged on liquidity. Everyone in Dubai is now looking for the magic figure on how much prices will fall, but because of what's going on in the US and Europe, we won't know where we are in terms of liquidity for at least another two to three months. Prices have so far mainly appreciated through speculation,' added Albert.

He concluded that although mortgages will be harder to come by, demand would remain strong, with the market moving away from off-plan speculation and back to basic fundamentals, such as providing a good quality product.

The news should be taken as a wake up call but should also be seen as an opportunity to look at other markets. 'Now, as the world faces up to market uncertainty, we enter a new era in which Middle East developers are expected to maintain and even increase their presence throughout the world,' said Rohan Marwaha, managing director of Cityscape.

'The sheer scale and intensity of the iconic projects in one of the most impressive property booms in modern history has kept the UAE, and Dubai in particular, in the headlines worldwide for the best part of a decade,' he added.

Dubai's largest developer, Nakheel, defied the pessimistic news by launching the world's tallest tower. Nakheel, part of the Dubai World group, unveiled plans to build a tower that will be more than one kilometre high - eclipsing the current tallest tower in the world, Burj Dubai.

Nakheel declined to disclose the project's costs, but said it was confident of weathering the financial storm, particularly as the project would be phased over 10 years. 'We know that the world is experiencing a financial crisis right now. But this is jut part of a normal economic cycle,' said Nakheel's chief executive Chris O'Donnell.

'It will have an impact on the Middle East but our view is that it will be relatively small as the fundamentals in this market make it stand out compared to other markets. There might be a slowdown but there definitely won't be a crash. We are confident that over 10 years we will be able to finance, build and develop this project,' he added.

Wednesday, 8 October 2008

81st Edition of the Carnival of Real Estate

Christopher Smith at Real Estate Investing in the Real World writes the beginning of an article about investing in real estate long-term. I really enjoyed the article until it suddenly ended. It should have been a completed article. The beginning paragraphs were intriguing and well written. Too bad it was cut short.

DaltonsBriefs presents a post that references a Zillow post about activists doing damage to property to bring notice to their cause.

MyNewPlace discusses the Casulo, a bedroom set in a box. It’s not available yet, but might be a great idea for students or people traveling abroad.

Nathan Blair of Salt Lake City Utah Real Estate Blog thinks aloud about what is ”classic” in architecture.

International Listings presents an incomplete, and questionable (they forgot to mention the best real estate website) list of real estate websites that are 2.0.

Purva Brown, the Sacremento Real Estate Gal, brings up three mistakes first-time home buyers fall victim to.

Silveral of Celebrity News and Gossip talks about celebrity homes and the characteristics many of them share.

John Lockwood of Sacramento Real Estate Blog lists the “Seven Deadly Misktakes Buyers Make in This Market.”

Dee Copeland of Texas Realty Blog writes about the trend of “Boomerang Buyers” moving back to the Austin area.

Charles Woodall of Dotham Home Search suggests that “Days on Market are Irrelevant” and makes some good points. I have posted on this topic myself and think it’s a good topic of discussion with buyers, especially in areas that are in buyers market’s.

Dan Melson at Searchlight Crusade suggests that “The Mortgage Loan Market Controls the Real Estate Market.” His thinking is that as loan products go away, so do buyers who need those products to buy, and when rates go up, the buyer pool of a price range gets smaller.

Lenore Wilkas of Hillsburough, Burlingame Luxury Home Sales says “Be Sure to Ask Your Agent How Long the House Has Been For Sale.” The post discusses the practice of re-listing property to manipulate the days-on-market for the listing.

Raymond at Money BlueBook gives his reviews of the house-flipping shows currently on television.

Joe also gives us a look at some of the Tallahassee market’s pricing and sales trends.

Silicon Valley Blogger at The Digerati Life asks “Who’s To Blame For The Subprime Mortgage Mess?” With responsibility distributed between many people involved in the real estate transaction, he wraps up with some good advice to the buyers who, I believe, are ultimately responsible for signing contracts on homes they can’t afford.

Steve Leung gives us the “Consumer’s Rights When Purchasing New Homes”. He talks about warranties, having your own representation and protecting yourself.

Steve Faber at DebtBlog wonders, “Property Foreclosures- Is It Really as Bad as They Say?” Steve goes over some of the statistics showing some states, including Nevada, Florida and California have high foreclosure rates, but also had some of the highest run-up’s in prices over the last few years.

Cynthis Holt from Real Life Real Estate shares her frustrations with buying a short sale property in “War Zone”.

Kathy Koops from The Cincy Blog explains how the “3 Key Words in Real Estate” may not be as important as price.

Geordie Romer of Leavenworth Washington Real Estate Blog presents his “Top 5 Ways to Shoot Your Leavenworth Condo Project in the Foot.” He actually goes the extra mile and gives six, including “Don’t dismiss the internet as a fad.” Good advice.

Brian Block of Virginia Real Estate News says, “I’ve Officially Run Out of Room on My Business Card” and shares his experience breezing through the broker’s exam and the designations he holds.

Craig Schiller at HOME STAGING, Rants & Ravings presents “OOPS Goes the Staging!” The post is written well. There a lot of bold words, but the post shows how video can help make your point. It would have been great to have some more specific tips and even some examples on good staging. Hopefully that will be in the next post.

Rebecca Levinson of Connect2Agent presentsDo consumers want rock stars or real estate agents to sell their home?” She tells the story of another agent’s attitude and the impression it left on her.

Cliff Jacobson at WebHome USABlog presents, “Realtor Dirty Tricks” where he discusses Glenn Kelman and the NAR.