# Speculators lead in Dubai



## Bahraini Spirit (Dec 14, 2002)

Hi, well this is not good:


The Dubai property market is driven by speculators at present with 85 per cent of sales of apartments and 50 per cent of villas not going to their final owner, agents told AME Info (see Dubai Property). They argue that developers should raise deposit levels to control a surge in speculation.


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## Trances (May 19, 2003)

thats what scares me too !
All plan to resell


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## Dubai-Lover (Jul 4, 2004)

yes it seems to be very doubtful, but as population is increasing so fast, i don't think it will be a problem
and remeber, not all of these towers are residential, there are also offices and hotels. companies build their own commercial tower to employ people there. these commercial towers won't be empty. hotels neither


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## Trances (May 19, 2003)

of course they all have to live and work some where and there is more than just res towers going up
but its still going to be huge market with resale and rent out


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## juiced (Aug 18, 2004)

I knew there was a lot of speculators but I never thought it was THAT high! Maybe that could explain the high number of villas that are unoccupied in some of the finished projects


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## Trances (May 19, 2003)

people say these investors dont care at this stage
but i cant believe that
and also with emply places rents are still so very high


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## juiced (Aug 18, 2004)

There was one investor that had around 80 apartments at the Greens but apparently he defaulted on his payments and so Emaar seized all of them and resold them at a profit!


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## Trances (May 19, 2003)

Like the developer care as long as some buys them they can over their costs
Not going to Happen but reminds me off when I went to Malaysia in 2003 there was beach front of high rises in Place called Port Dickson that was empty and deserted
the places were huge rises and half were not completed the rest were only a few years old and had almost no occupants. The whole towers and area around were all falling in to disrepair as there was no living in them


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## Bahraini Spirit (Dec 14, 2002)

like i said before, these sell out for business purposes, you don't really know ur neighbour or u don't have a fixed one. Buy, rent (long term profit) or sell (instantaneous profit).


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## juiced (Aug 18, 2004)

Btw just in case anyone here didn't know most of the villas/apartments on sale allow the developer to seize any unit if the owner misses payment by even a day so you have to be careful!


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## Trances (May 19, 2003)

yep and its always pay with in 3 years
15 at first then 10 days later another 15% then more at breaking ground then 20% with each 10 floor core rise or so !
But thats only for the little inverstor I would thing that already had bank loan so then whats the point ?


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## Koi (Jul 10, 2004)

As I have mentioned before on other threads, I am concerned that many flats are sold and resold by speculators -- hoping to reap a quick profit. This probably explains why many developments are sold out even before the foundation is laid. The Government should stop these speculators from distorting the property market, as this sort of thing will eventually cause heartache to many people. I can see the shit is going to hit the fan soon. All these activities are driven by media and hype.


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## SA BOY (Mar 29, 2003)

well the developers dont care. They get 20% deposit and a bank load certificate from the buyer. If he defaults the bank owns 80% of the property and with the capital gain over the construction period they will make money on the resale. The developer gets paid so he happy and the bank makes money so they are happy. So at the end of the day its the bank and developer wo is taking the risk and they are not stupid


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## juiced (Aug 18, 2004)

Wonder what the % of property on the Palm Islands are bought by speculators?


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## Bahraini Spirit (Dec 14, 2002)

Leading Dubai property developers are acting to prevent excessive speculation, reported Gulf News. Restrictions on re-sale within two years, a two per cent transfer fee and less generous mortgage deals have been imposed to try to dampen speculative interest in the emirate (see Dubai Property column).


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## jag (Sep 14, 2002)

I visited Dubai recently and my favorite place is the well thought out Jumairah Beach and Park.

Except for the resorts, Dubai seems to be mostly a gigantic consruction site.

With all these hundreds of new snazzy towers u/c or proposed Im wondering where on earth are the people who are going to fill them, coming from.

The key to good investment proporty is not so much location, but supply and demand. I would not suggest investing in large towers they can simply just build another one and another one as they are doing now.
The oversupply in the market will hit when most of these towers are completed. 

Its the same investment rules worldwide no matter where you live.

PS; The pollution was really bad the few days I was there, is this the norm?
If it is then its unfortunate for the health of Dubaians.


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