All Forum Posts by: Nawaz Shahzad

hi guys

Speculation in Dubai’s real estate market driven by lack of regulation which now has been identify by analysts as major cause of hype in property prices. Real Estate professionals In the UAE, particularly in Dubai have praised the legislative procedures adopted by the government to regulate the real estate sector and impose tools that safeguard the interests of not only property developers but also investors. The decision to ban speculations in the off plan realty market is a vital and positive step, that will contribute to the stability of Dubai real estate market and boost its growth. What was happening earlier that suddenly there are more sellers and few buyers in the market and people are finding it difficult to sell properties? The correction which is taking place now has been long overdue. And will surely help eliminate speculators and help property market correct itself and stabilize, which is good for investors.

Everyone knows that the property prices in Dubai, which skyrocketed in the last 5 years, could push investors to other markets if correction does not take place. Analyst has already begun to compare housing in Dubai with those in the UK & other western markets. Therefore RERA (Real Estate Regulatory Authority) & Dubai Land Department have taken vital steps aimed at reforming the market. One of these is the Trust Accounts Law, which requires all developers to open trust accounts in which the amount received from off plan unit buyers are deposited, and not used until the project is finalized. Government believes that the real estate investments should be long term.

Nawaz

Hi Folks

Over all prices in the UAE property market increased in Sep 2008 with highest recorded for Dubai with 17% followed by Abu Dhabi with 11%. This price hike is gearing up again after a moderation introduced this summer. Some of the sources said that Dubai seems to be stabilizing thereby compressing rental yields. On the other hand when we see that things are reached a level where Affordability is getting violated. Interestingly the government is in a full control to manage housing supply through its direct and indirect ownership in Dubai’s largest property development companies. Roughly 90% of upcoming supply in Dubai’s controlled by Nakheel, Dubai Holding & Emaar.

While prices in the UAE real estate market are becoming unaffordable, Dubai unlike Abu Dhabi offers a wide range of housing units catering to most income levels. Property prices in UAE softening is not only a good omen but also necessary at this point of sustainability.

Cheers
Nawaz

Hi Folks

What i think buying a property is simple and straight forward as long as you do follow a checklist. It is really difficult to spend time in researching property overseas, but if someone found the property exhibition in a desired region would help them a lot in relation to meet the developers and real estate agents, and get first hand knowledge of about their properties and locations.

Generally I suggest before you made up your mind on a type of property, it is important to decide what is your reason for buying a apartment, villa or land. Even you could classify yourself in three types; direct investor, 2nd line investor, and holiday maker. By knowing in which category you are falling helps you to decide buying a property as an investment but using it for holidays or you could also buy a travel home and look at living their permanently or you can invest in the property and rent it out. But remember it’s not always a price and building when buying international (overseas) one also need to check the climate, political stability, economic conditions, health care, letting potential & law n order situation.

For instance, if choose UAE as desired destination for our overseas property investment, then what market facts we have that either move forward or backward with investing intentions.

1.Property market in the UAE is witnessing continuous growth.
2.Lot of local, regional and international investors intensifying current property market.
3.Government guarantee and security for property buying
4.Influx of development projects with new & exciting architectural designs
5.Controlled law n order situation
6.Economical & Politically stabled region
7.Multi Cultural Society
8.Middle East Business & Tourism hub

When you found all these in one place and also you understand which category of buyer you represent, you will find searching of your property much easier and afterward in investment.

Cheers
Nawaz

hi folks

When it comes to property investment, selection of the right location for your property is crucial. Property developments near the financial centre of Dubai are now increasingly in demand, although buyer will have to pay more for real estate here, but they are all exclusive. For buy to let investors I would suggest that should look around areas like Dubai Land, because many of the top multi national and national companies have offices their! So ideally it’s a worthy investment who wants to invest in commercial property. Areas in Marina Dubai generally attracts business & leisure travelers fulfilling their short term staying needs, thus attracted investors who are focus on rental property gains. But beside that, this area has an attraction of holiday home owners who wish to rent out their properties when they are not here.

In short Dubai has something different therefore it is attracting a huge number of people all around the world.

nawaz

Hi Guys

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. 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.

Cheers
Nawaz