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In denial—Buying property in Dubai “a dream come true”

In denial—Buying property in Dubai “a dream come true”

Gulf News illustrates just how easy it is to take out a mortgage in Dubai, as if that was the only thing keeping most of us from buying property here.

August 8, 2011 3:43 by



With the US being downgraded by S&P earlier this week, Kipp will be the first to say the future is looking ambiguous. We are not sure what the next few weeks will bring for the US economy, and by extension, the economy of the rest of the world. For one thing, many speculate that the UAE, with its dollar-peg and firm US-backing ways, is in for a tough time ahead.

And though Mohamed al-Tamimi, deputy executive director at the UAE central bank’s treasury department will tell you with much confidence: “We are pegged to the dollar and will keep it. We don’t see the dollar collapse. Because the problem is not in the US only, but also in the European markets. (…) But if the yields go higher to a justified level, there is no reason why we will not invest in US treasuries,” not everyone shares his confidence about the future of the UAE economy.
What with the rollercoaster ride of debt Dubai has been through, there is very little that can be said about Dubai with absolute certainty: except of course that it has one of the most volatile property sectors in the world. Not only do investors lack protection and representation here and the construction projects have been on a perennial pause but so too is the value of the property dropping. Kipp’s written countless articles upon articles highlighting this trend, which is why we were absolutely tickled when we read this article by Gulf News titled “We bought our homes, so can you.”

“Many people living in rented accommodation in Dubai are not enthusiastic about the prospect of buying a home—not because they are unaware that mortgages are now more easily available but simply because the entire process is thought of as lengthy and cumbersome” is the pearl of wisdom Gulf News chose to begin this article with.

Let us just stop you right there GN. The lack of interest in taking out a mortgage in Dubai isn’t just about misconceptions of ‘lengthy and cumbersome’ mortgage processing, nor is it because they lack awareness of the availability of mortgages. No, no. It simply isn’t that straightforward. There are so many layers to the demise of the UAE’s property sector that the account of two families happily shacking up in Dubai (kudos to them, of course) just isn’t…



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10 Comments

  1. DG on August 9, 2011 9:14 am

    The chinese are now coming to buy villas in Dubai, particulary Emaar villas. This has got to be a surest sign of a bargain. !!! Its going to get better.. like gold has … just stay away from apartments as these are not an upgrade purchase.
    When people get richer they upgrade and thats the stuff you’d best get your hands on.

     
  2. Zoher on August 9, 2011 9:41 am

    I think what Dubai’s property sector needs is some confidence buiding measures from Govt of Dubai like Protection of Buyers from unfair terms of developers, provision of utilities , right to residency ,
    removing of bias in favour of Govt real estate entities,maintaining cash flow to Construction sector.

     
  3. Wayne Holder on August 9, 2011 12:51 pm

    The bottom line is that while we read all these stories from people pretending that they know what they are talking about, simply put they haven’t purchased property bacause of only one thing – they just can’t afford it! Any person who purchased a completed property before June 2007 or after June 2009 in Dubai, now has a property that is worth more than what they paid for it. Just last week Dubai registered over AED 2 billion in real estate sales – clearly there are some great deals available out there. Get real please. Dubai has one of the easiest property registration systems in the world. When you can afford it, then you can experience it and write about it.

     
  4. Suzanne on August 9, 2011 4:12 pm

    Seriously Wayne, ‘When you can afford it, then you can write about it’?! You’re epitomising the very problem here – if Dubai real estate is so elitist that few can afford it then effectively it is worthless! As a property owner who would like to see the market reflect real value in real estate, I’d like to see some other people able to buy properly valued property with less paperwork but decently rated mortgages – then we have will a competitive environment.

     
  5. Dino on August 11, 2011 12:37 pm

    Let’s face it. who would like to buy anthing in Dubai when they know that developers control beyond any logic the place, are overcharging for unexisting services and there is no way to solve any dispute with them. Any investor is a loser from the day they sign. Dubai market is dead for long time simply because neither banks, developers or authorities want to deal with the real issue: No laws to protect investors.

     
  6. Andrew on August 11, 2011 3:31 pm

    Gulf News may as well have run an article recommending you chuck your money into a pile and just torch it, about as useful … and probably a better rate of return.

     
  7. Wayne Holder on August 17, 2011 9:12 am

    Seriously Suzanne, I mean what I say. Dubai has properties available from AED250,000 to Millions. As I said previously, any person who purchased a completed property before June 2007 or after June 2009 in Dubai, now has a property that is worth more than what they paid for it. If you buy propely, in good area with good facilities in the long run it will always be better than most other investments that you make. Most of the comments on these type of articles are from people who just cant afford to buy, or are not credit worthy to get finance, and then make up these stories to try and justify to others why they haven’t bought a property yet.

     
  8. Kipp on December 9, 2011 5:29 pm

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  9. mobile on December 9, 2011 5:37 pm

    mobile user Simple test for XML-RPC call without username and password

     
  10. Bought and regrets on December 10, 2011 6:07 pm

    I can afford to buy more than one property in Dubai. I bought 2 and still regret although I am still in positive equity. No laws to protect me from greedy developers and utilities companies are my main concern. I bought 1 property to live in. But cannot enjoy it because the developer does not allow me. The other one was for rent and get some income. Today the rent does not cover the SC’s, utilities cost and housing fees. On top my 3 years visa is not applicable any more. My rights are not protected, The HOA is not for tomorrow and RERA is silent. The market is dead for at least 10 years due to eversupply. These are facts for any investor who can afford to buy.

     

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