Property in Dubai: The calm before the storm

This guy mostly lifted this from online newspapers published here in the UAE. I have seen several copies of it the day before. LKY told investors to buy with your eyes open forgetting that it is easier said than done. I feel like telling LKY to go say the same to the great Sir Isaac Newton who lost most of his fortune in the South Sea Bubble.

What if you open your eyes but just cannot see, which is the problem with most people. You need trusted people to guide you! Again eaiser said than done because the greatest enemy of most investors are themselves.

Pause and think. Go back to the Supply/Demand balance. The key point here is that they can't sell so now they want to rent it out. What do you think would happen to the supply of rental properties? Up right? So suckers will bite first and then the smart ones will come after and have their pick.

Dubai is retrenching expatriates. There is growth, it is called negative growth. So the demand side is coming down against rising supply.

Should you trust what I say? No, not yet. You need some numbers which I do not have, but I have given you the trend. So if you need to act on this, you need more data.

Remember the middleman doesn't care if you make or lose money as long as there is transactions, he/she makes money.

Dubai rental market on the rise
Concern about the credit crunch has created a movement in the Dubai property market away from sales towards rentals, according to industry experts.

More and more properties are being marketed for rent rather than being sold on. ‘Speaking to brokers, we have noticed a shift in the market. Now that more and more properties are being completed, property owners are looking to rent their properties to manage mortgage repayments,’ said property event director Pooja Rajani.

The trend has also been noticed by Riad Kamal, the chief executive of construction giant Arabtec Holding. He said that more developers would become more reliant on income from property rents as the housing sales market continued to slow.

‘There is a huge demand for rented accommodation and that’s what is escalating the rent prices. What we are going to see is a healthy correction as more accommodation becomes available, helping to reduce the rents which today are just very unreasonable,’ he added.

However not everyone is reporting property falls. ‘Contrary to popular belief not all property prices are falling in Dubai. We see a very clear end-user market emerging both in terms of rental, investors for buy to let and owner occupiers in projects that are completed or close to handover,’ said Vincent Easton, sales director at Sherwoods Property Consultants.

‘The fundamentals and dynamics of both living and working in Dubai are still strong meaning the medium to long term outlook for real estate investment remain sound,’ he added.