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Thursday, 12 December 2019
Poll shows 61% will 'never' buy property in the Gulf
Saturday, 04 April 2009


Almost two thirds of those responding to an online poll have said they will never buy a property in the Gulf after the real estate problems of the past six months.

The survey by Arabian Business was sent out in the wake of news that HSBC Middle East had relaxed its mortage rules and was now offering 70 percent financing for apartments and 75 percent for villas.  

Despite the easing of loans, 61 percent of responders said they would never buy a property in the region after witnessing hyper-inflated house prices over recent years, followed by the current fall-off in value brought about by the global recession.

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Another 18 percent said they would not be able to even think about buying a property until mortgages offered 80 to 90 percent financing.

A positive 12 percent said the 70 percent mortgages move had encouraged them to buy.

Surprisingly only nine percent said the better deals had wetted their appetite to purchase an apartment or villa, and they were just waiting for the prices to fall further. 


 
Comments (18)

PROPERTY IN GULF
Posted by RAMA, DEIRA, UAE on 6 April 2009 at 14:14 UAE time

I STRONGLY BELEIVE THAT THE IMPRESSION PEOPLE HAVE NOW ON THE PROPERTY MARKET WOULD CHANGE WHEN THE TIME PASSES AND WHEN THE PROPERTY PRICES ARE REALISTIC AND STABLE WITH VISA RULES AMENDED FAVOURING THE INVESTOR. MORE OVER A LOWER LENDING RATES FROM THE BANKS WOULD HELP THE INDUSTRY REVIVE EASIER. I DONOT AGREE TO THOSE
61% wont buy
Posted by Raj, Dubai, UAE on 6 April 2009 at 10:40 UAE time

Look fellas, i dont blame you for reacting this way. Clearly the RERA has failed to keep all happy, but seems they are trying to bring in more transparency. The developers are now feeling the pinch which is great - we bought in one tower in Shk Zayed from an indian devleoper - offices due to deliver March 2009 (yes last month) and till now these fellows have only done the fencin and have some workers on site posing for photos taken to show work is progressing. Now they asking for more money and all have already paid them 25%.

RERA has to play a role to make sure all developers are treated at par and no special rules or treatment for E & N.

All i can say is best to all.
Transperency
Posted by Tehsin Asghar, Dubai, UAE on 5 April 2009 at 16:47 UAE time

I think that is the key to success for Dubai. They should learn to treat good and bad news equally while publishing. I feel that bad news are hidden either completely or revealed in the inside pages of newspaper. Also the law which is about to be enforced which restricts media to publish negative news is definitely not positive. This means to say that I don't know what is really happening inside, as not everthing is transparent. They must learn to accept critisim opening and with full heart. So I won't feel safe in this situation.
Never Ever
Posted by Zafar Abbas, Toronto, Canada on 5 April 2009 at 14:47 UAE time

I always use to tell my friends this is a highly unreliable and unregulated market. Do we build first and then bring the set of rules to govern developments? Even today there are no rules to govern a condo building. The rules will be highly tilted in favor of builders whenever any such rules are made. The property development in Dubai was just a hype and is gone for ever. It does not bother those who have black money. Why to pay 100% in davnce for three years and get robbed. I can buy in any developed country for only 25% in advance and pay the rest when i get the key. Good luck to greedy people......
property
Posted by ahmed, uae on 5 April 2009 at 12:27 UAE time

It does seem that money is not an issue but trust/faith/transparency is the main issue...however, sadly, nothing id being done to restore it...and it seems to be quite late now...looks like we will be back to good old days...no freehold...just rent your properties and be happy
never buy property??
Posted by lharlow on 5 April 2009 at 12:16 UAE time

I am just waiting for all the greedy people to be forced to sell and then i will buy more in a very interesting long term market. Most idiots bought on the high anticipating the rewards of the smarter people who bought right and early
I wanted to buy
Posted by gordon, Dubai, U.A.E. on 5 April 2009 at 12:09 UAE time

I wanted to buy, but after my experience with estate agents, I never want to deal with them again.

Afte buying an off plan and have the developer do a runner and as such lost aed 750k, I would never buy offplan again.

After seeing people buy with a beach view, lake view (and paying a premium, etc. only to see them fill in the lake and build an appartment block, build a 90 storey building infront of your sea view, build an exit for the metro 5 metres from your balcony (making it unsellable). I no longer trust even buying a finished property.

Not to mention the low quality, extorniate service charges and lack of transparency in these charges, I am not sure what could convince me to buy now.

3 years has taught me a lot about property in Dubai.
Ecology and buying a house
Posted by Obelix, Dubai, UAE on 5 April 2009 at 10:39 UAE time

Anyone contemplating buying a property to live in Dubai must read the recent article in National Geographic on the Murray Darling Basin in Australia. It's an eye opener on how an arid region was developed and then collapsed under the ecological and climatic changes.

Water tables in the middle east region are headed south and desalination plans are dying under the load. Do you truly believe that a region that nature intended to be only sand wants to turn into a rainforest without any ecological consequences ? food for thought.
Is staying on the sideline better?
Posted by Simon, DUBAI, UAE on 5 April 2009 at 10:27 UAE time

With all the money that will be thrown at the economical problem around the world, it would be foolish to stay on the sideline. At some point you will be seeing your saving being diluted as inflation raises (more money supply more inflation). I do own in Dubai, and I am actually looking for another property to buy. The key here is "Don't over extend yourself with loans, buy what you can afford, and pay for".
No Protection
Posted by Max, UK on 5 April 2009 at 10:11 UAE time

Its no surprise really. The govt is doing nothing to make it easier for people to make long term plans in Dubai. The job market is tough and making a living here is becoming impossible. It may not be any better elsewhere but Dubai is still a very expensive place to stay and for what?? - The sun, the sea, the lifestyle? - what about some laws on securing the long investing expat population? How about addressing some sense of security? Even if people decide to buy property, who is to say what U turn there will be in the future for the laws that be? I live and work here and was looking for an opportunity to buy my own place. Not anymore!
Visa
Posted by Sunita Bhatia, Dubai, U.A.E. on 5 April 2009 at 09:12 UAE time

Property purchase without the visa law would not be a good way to investor. I personally feel until there is Federal law allowing investors to get resident visa after purchase of their property with at least 3 years validity once should not buy properties here. So far if you have no job mean you can not stay in the country - so what would you do buying a property here. Dubai should offer feeling of belonging to investors.
Dubai Property Lending
Posted by Mansoor, Dubai, United Arab Emirates on 5 April 2009 at 09:06 UAE time

I agree with Jay but I believe that if the Dubai government can still comeout with a law in writing that they will be providing visa with the property owners. Having said that they can have different types of visas for Investors, Homeowners who will use it for thmeselves then I still believe the property market can again standup or try and reach where it was before.
Property in Dubai
Posted by CSS, Dubai, UK on 5 April 2009 at 08:53 UAE time

A lot needs to be done regarding setting up proper rules and rights relating to property ownership in Dubai. To start, the Developers need to be more transparent. Recent cases have revealed how even the big and well known Developers are taking advantage by hiking up prices once the buyer has signed on the dotted line and paid a deposit. Not only that, but the "Maintenance Charges" is a license to milk for lifetime. These developers and the Auditors they employ are very devious and crooks. The Banks and the Finance Houses are of course another lot of crooks. Interest on loans in even these days of low interests worldwide is in the range of 8-9% at least with hefty "Arrangement Fees" for the loans. How do you justify a fee of AED 5000 or more for 10 minutes work - Sure, a Daylight Robbery. It is not surprising that a majority of expatriates have been discouraged and are unwilling to buy into property here. Mostly its the speculators who have got their fingers burnt - I hope.
Planning Rules and Quality
Posted by Paul Ransted, Dubai, UAR on 5 April 2009 at 08:50 UAE time

Remember when, I cant remember the Gentlemans name, said this is not Europe we dont need planning permission to build a major road straight through the Springs....we just do it here. Then there are people who bought Golf course, Lake views...now there are villas where these items were meant to be...again without any notice.

Then you get the quality, most of the construction is terrible. and getting worse....the bottom line is how much quick profit can the developer make and if it falls down in 10 years who cares.
property?
Posted by Joh on 5 April 2009 at 08:13 UAE time

Given the fact that you have to leave within one month of losing a job, how does one invest in property here?
The main blame falls on officials making decisions
Posted by Doc, DUBAI, UAE on 5 April 2009 at 08:12 UAE time

It is really sad that somehow the officials in this country have managed to ruin what was once supposed to be the next great thing. The hasty way the decisions are made and the way they are implemented on a daily basis is turning away all interested parties. I will only list a few areas for just a glimpse:

- cancellation of 3 year visa for property buyers
- inability to come up with a new residency law and it's immediate implementation to stimulate the market
- 1 month stay deadline for terminated employees
- inability to come up with a new law to extend the 1 month stay and it's immediate implemantion to stop the mass exodus of the terminated employees and to stop the disasterous effects it is having on all branches of the economy
- Lack of comprehensive laws in place prior to the start of the boom to protect the investors
- delay in handling complainsts by disgruntled investors which are losing or have lost their lifetime savings to scamming developers
- lack of transparent laws for real estate and ensuring that all people are totally aware of the laws and the ways that they can ensure they enforced.
- lack of a major stimulus package with major infusion of funds to the banks to ensure that the lending resumes in time
- overall lack of planning for real estate developments and leaving doors open for all scammers and greedy developers to run whatever scheme they desire to swindle poor investors

and many many more problems.

THE SOONER THE GOVERNMENT INTERVENES WITH MAJOR REVOLUTIONARY CHANGES IN THE MARKET, THE SOONER THE CHANGE OF SENTIMENTS BY THE BUYER.

After all, the above report has major short comings on the scope, the findings and the conclusions of the report. It fails to mention that the above people would also not buy property anywhere else in the world either.
Investing in Free Hold
Posted by Dus, Dubai, UAE on 4 April 2009 at 19:42 UAE time

The Government of UAE has to encourage media to publish facts and figures and it is important to extend support to investors already having invested in freehold in UAE. All registered freehold companies have to compulsorily extend support in justifying raised queries by investors. The Government has to strictly enforce legislations and tough laws on real estates and only companies that can justify their position in this market should be permitted to carry on business dealing with property and public investments.

Like other countries, investors have to be given certain rights to feel worthy of investing huge finances and a sense of ownership.

Appreciate if the comments can be looked into seriously.
Who is to blame?
Posted by jay on 4 April 2009 at 16:12 UAE time

given the dubai mess can investors be blamed? We are very quickly losing faith in Dubai as a place to work and live. the barriers to entry in most businesses here are too high and any kind of investment real estate or companies too untransparent to whet our appetitites
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