Property Gallery

Buy Dubai Property But With Little Homework

2008-10-29T06:14:00.000-07:00

The UAE's booming real estate industry continues to undergo ongoing regulatory and property market changes, reflecting its seriousness and maturity on a regional & international level. Since the Dubai freehold property law was introduced sometimes 5 years ago the nature of the market has changed noticeably, with the first time speculators now giving way to more owner, thus resulted in inflationary house rental pressures.

On the other hand UAE especially Dubai and Abu Dhabi has wealth of different property mortgage products available, real estate investors need to carefully consider payments terms, installment rates and interest rate. Behind all the glistening advertising materials, investors who are selecting either apartments or villas for living or selling, need to do their little research and calculations. They should apply every standard of evaluating real estate in UAE; like location, price, potential return on investment and most importantly property developer track records.

The latest status quo is that there is a shortage of housing because of delays in building residential homes (apartments & villas) and thus has alleviated the prices this year (2008). But the good news is that the approximately 60,000 - 70,000 new residential units will be in the market in 2009 (Landmark Properties Dubai). With this we may see the falling of soaring rental and buying prices, gradually. And by 2011 it may come down by 20%.Accroding to Morgan Stanley the Dubai Property Prices would fall 10% by 2010 because of housing oversupply. Earlier the majority of investment in real estate came from UK (like 20%) and this has slow down in recent months because of global financial crisis! But never halted the property buyers from India and Saudi Arabia, this followed by strong interest shown by Iranian & Russian buyers. As a whole driver of property growth in UAE (Dubai & Abu Dhabi) remain in place. All those who want to invest need only to be able to take the future view.

Author: Landmark Properties

Property in Dubai

2008-10-29T06:11:00.000-07:00

The property in Dubai has made it a commercial downtown and Dubai has emerged itself as the Shangri-La of real-estate deals. From its patronage of sand dunes and tranquil beaches, it has congealed into a global property portal . The property here has become a fountainhead of capitalist investments.

The cardinal attraction of the property in Dubai is its low prices that are one-third per square meter as compared to the property in the US. Apart from it, one can economize through the tax-free income in Dubai against the vast revenues in the US.

The rent prices have inflated to a minimum of 10% to a maximum to 50% in past two years. This progression in rates is drawing in the investors into property and to combat this hike, people are shifting to permanent property from lease.

Property in Dubai offers the perfect pedestal for the markets of Central Asia, Middle East, Africa, Asian Subcontinent, and East Mediterranean. A multinational company that wishes to maneuver the 2million people of this area with their GDP of U$6.7 trillion ought to earmark property in Dubai.

The economy of UAE is flourishing as ever with the rising oil-revenues. The national economy turns out to be a boastful add-on for the property in Dubai.

Various financial institutions are forthcoming with diverse mortgage and security rate options. The prime objective is to reduce the cost of borrowing. With so much to offer and aiming to cost lesser, the property are adjuring with the gleam of gold.

The salient features that the property offers are expanding its market substantially. The demand has amplified enormously. Dubai has emerged out as a commercial hub where all dealers want to invest considering the lucrative possibilities. It is becoming difficult to locate property in the key areas due to the tremendous demand. With this rapid bloom, it is anticipated that the property will experience a further increment in its monetary value.

The major property areas in Dubai have highlighted themselves as the ‘drawing card’ for which everyone has a quest. With the expansion of Dubai as a commercial platform, it is attracting more and more expatriates. Hence the demand is outlasting the supply and there is a stage of imperativeness being developed that causes an acclivity in the monetary value.

Dubai has a lot more to dispense than just property. The egression of the commercial environment has brought with it a new era of lifestyle and glamour. The efflorescence of malls, hotels have given a new dimension to leisure and entertainment. Dubai has turned out to be the ideal destination for all shopping-lovers. It offers an avid and luxurious environment. With the connectivity to other countries via airport and other global means, Dubai offers the nonpareil blend of connectivity, investment, globalization, and commercialization and a property in Dubai gives a countenance to avail all these perquisites.

Author: Property Reporter

Asian Property Investment Risky and Badly Performing

2008-10-29T06:10:00.000-07:00

Asian residential property buyers beware!
Asia's real estate markets seem, on the surface, to have recovered from the Asian crisis and to be back on their feet. In fact the entire world has enjoyed a residential property boom over the past decade - Europe, the US, Australia and New Zealand have seen property prices soar.

But in Asia the reality is quite different. Asia's residential markets have performed poorly, according to a report by the Global Property Guide. Once the price rise figures are adjusted for inflation, Asia's record looks poor.

HOW ASIA'S RESIDENTIAL PROPERTY MARKETS HAVE PERFORMED SINCE THE PEAK (inflation-adjusted):
Hong Kong: still 61% below peak
Indonesia: still 50% below peak
Malaysia: still 10% below peak
Philippines: still 55% below peak
Singapore: still 37% below peak
South Korea: still 38% below peak
Thailand: still 10% below 1992 peak

"There have been few less profitable investments than Asian residential property over the past decade," says Matthew Montagu-Pollock, publisher of the Global Property Guide.

"And if the present construction boom continues across Asia, the next decade isn't going to be much fun for property investors either."

Rental yields are quite high in Indonesia, Thailand and the Philippines, while Asian countries benefit from strong economies. But their real estate markets' rise has been limited, primarily by government mis-steps.

"Asian real estate markets would have been stronger had it not been for government mistakes," says Prince Cruz, chief economist for the Global Property Guide. "If it is not a coup, a protest rally or runaway inflation, then it is government meddling in the housing markets that has killed performance". Cruz's study points to the housing markets of Singapore, Hong Kong and South Korea as victims of government subsidies and intervention, while the housing markets of the Philippines, Indonesia and Thailand have suffered from political instability.

Asian prices still far below peak levels
Despite gleaming reports of recovery, Asian house prices are still below their pre-Asian Crisis levels. In a report released, Global Property Guide suggests that a combination of inflation, widespread subsidies of housing markets, political troubles, and overbuilding, have made the outcome in Asia quite different from other 'boom' markets. Asia's present apparent property boom is a 'construction boom - not a property boom', it says, warning investors against following the tempting siren song of the real estate professionals.

When adjusted for inflation, the happy picture changes remarkably from the good news about property price rises.

Indonesia, for instance, is having a difficult time battling inflation. Corrected for inflation, Indonesia's house prices actually fell 8.4% in 2005 and 7% y-o-y during 2Q 2006.

This year's mild nominal price fall in Hong Kong (3.7%) is amplified by considering inflation. Hong Kong dwelling prices have actually fallen by 6% in real terms.

The (modest) apparent price rises in South Korea, Singapore and the Philippines actually become price falls, or are greatly moderated, once inflation is factored in.

Author: The Global Property Guide