Hi all, Anyone out there, expert or otherwise have an opinion or knowledge of the current situation of the Dubai property market? I'm thinking of investing in residential or commercial and have heard of yields in excess of 12-15% and appreciation in excess of 20% (True or False?) Any help would be appreciated thanks Shay

shay - there was quite a long post about Dubai about 2 months ago. There are plenty of arguments for Dubai and plenty of arguments against it as well. The arguments against investing in Dubai make a lot more sense to me. Suggest you could have a read through the prior post and then post any questions or thoughts that you have from that.

Hi Shay. Check out the article I wrote for PS a while back. It contains some useful guidance and information. You can read it by following this link: http: / /www .propertysecrets .net /article /dubai _or _not _dubai _is _this _market _hot _or _just _hype /1569 .html One of my major concerns at the time was over WHO is making the yield ... and regrettably I think it's the developers rather than the buyers. Good hunting.

Hi all, I only discovered property secrets website and as ive recently purchased in dubai i did a search, and read the articles and comments from last march. I have to say im concerned at the negativity in general. Ive purchased two apartments off plans, a one bed in the new dubai waterfront and a luxury apt in a marriot backed dev called Lifestyle City, both to be completed in 2009/2010. My plan for both would be to flip them on when i felt that the time was right. Undoubtedly i got a big sales pitch from any estate agent i spoke with but i also spoke to several people living out there for years and they seemed confident that if you bought in the right area that properties were being flipped as many as 5 times prior to completion with good returns being made through capital appreciation. I would greatly appreciate any info anyone can share with me

James - Dubai is a bit of a gamble in my view. There are so many questions about dubai that point to high risk - what is projected supply? Seems like it will outweigh demand soon. The amount of new build is staggering. - is there too much luxury supply being built? Seems that they only want to build luxury so surely the market will be flooded with luxury developments. - do the laws protect you? what happens if the building spec doesn't match the contract? how can you resolve this in Dubai which is not a democracy. what happens if the development continues to be delayed? Will the law protect you? It may but I wouldn't be confident that the law will side with a foreigner. There are clearly plus sides as well such as the 0% tax rate, and progress towards becoming a financial hub. It just seems way too risky for me on balance. There's certainly enough good opportunities within the EU right now to mean that Dubai is unecessary risk. It may work out ok in the long run but short term and medium term don't look good in my opinion.

Hi James, I bought and sold 2 properties (sold 18 months ago Shoreline Apt on Palm and a Jumeirah Beach Residence apt.) I could have made more on the Palm but had a buyer so got out, still made a steady 30% ROI in the space of 18 months. Was lucky to ditch JBR as it's now a concrete jungle. It's also rumoured that one of the fronds on the Palm has started sinking and the planned central canal on the Palm will not materialize. I know some colleagues who are getting very good rental returns (12-14%, although a law was introduced recently capping rents at 7%????). They have concentrated their investments near the Jebel Ali Freezone.. Not sure whether I would invest there again... one place I would consider possibly is Ras Al Kaimah - U.A.E. or Oman should I go down that route... Dubai in my opinion - High risk with possible high rental/capital growth...who knows????

Hi Shay, I ve bought commercial off plan units in Abu Dhabi recently - you might think about looking at the negihbouring emirates as well as Dubai. Have you been there? A lot of people are talking about RAs Al Khaimah as another emirate that is likely to do well - its smaller but it also cheaper. If you're after high yields then UAE is definietly the place to be. With the right deals yields in excess of 20% are achieveable. If you consider commercial you will find stronger returns there than in the residential side. The markets out there knock the socks off anything in the European continent (i ve invested in several european markets). Probably the best European property location right now is Romania (I've bought there too) and that is lame in comparison to whats going on in the Gulf. Things are getting quite sticky in many EUropean property markets and stock markets now and over the next several years but if you look at whats happening in global business terms (the constant rise in energy prices over the last 8 years) there is a massive massive tidal wave in support of the rise of the Gulf region and its stock exchanges and property markets. This is the reverse of what happened in the 1990's when the extremely low and stable energy prices gave a fantastic platform to the west leading to amazing rises in stock and property markets. Those days are over. I would definitely advise you to get into the Gulf - but research more than just Dubai before you decide to buy. The trends and momentum favour you strongly now in the Gulf just as they did in the last decade in the west.

Hi Pauline: Re: Dubai. I also heard rumours about one of the fonds sinking but I have been told that it is only a rumour...we shall see!. Regarding the change in plan from the canal. I actually prefer the new community Parkland. I have bought at apt.as a Fairmont Resident, as I mentioned months ago to you, but they are now going to incorporate a 7.8 hectar park, instead of the canal. This is to become a focal point for famillies living on the Palm. It will contain pools and fountains etc. they are doing this because access will be easier. I have bought here purely for rental income tax free,as apposed to capital appreciation. However, to obtain a mortgage is a bloody nightmare. Lynn

Hi Lynn, How are you??... Good to see your mission for world domination is still very much in progress!!! The 'sunken frond' was only what I read in the U.K. papers. I have no 'insider knowledge' being in the Middle East. The park sounds a much better idea actually, why have a canal when you are surrounded by a lovely blue ocean? No doubt they will find room for a huge flowing fountain somewhere, as is generally the case in these parts. Good luck with the mortgage, I remember the administration being a nightmare. They were still sending stuff to the wrong address after about six notifications of C.O.A. and several telephone calls, when they eventually got around to answering them..... I'm sure things have improved. Some of my colleagues here are doing well with their investments rent-wise and have moved into the commercial sector. I still toy with the idea of re-investing if just for the high yielding rents but do worry about over supply which if reports are to be believed should be kicking in very soon, I still think the Palm is a good bet as it's part of Sheikh Maktoum's showcase to the world and he's not going to end up losing face - whatever the cost!!!!

Dear All, I live in Dubai...on The Palm...rest assured it isn´t sinking! I think the rumour may be because one of the Fronds is currently used to house workers and is yet to be built upon. Regarding investment; the arguments concerning over-supply continue, but the reality is there remains a shortage of property in Dubai (in particular demand are villas). Perhaps by the end of 2008 the supply of and demand for apartments may have reached an equilibrium, but almost every development is late in completion. Anyone contemplating other Emirates such as Ras Al Khaimah would be well advised to visit these neighbouring emirates first...they are NOTHING like Dubai! Finally, as each development in Dubai approaches completion, the prices escalate (which is a result of the lack of supply of completed properties in the area). Villas on The Palm that were already 100% higher than their purchase price have seen further 100% increases once completed. If you have purchased with an idea to "flip" before completion...you would be well advised to hold on as long as possible....the 3 months prior to completion are the real key to profit taking. If anyone has specific queries about developments I would be happy to pass on my thoughts. I like to think I can give an independent view, having also got properties in Poland, Romania, Croatia, Slovakia and Montenegro.