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Do you think Dubai’s property crash has tainted the emirate’s image globally?

Do you think Dubai’s property crash has tainted the emirate’s image globally?

The results are in

January 18, 2009 2:30 by

With the property crash reaching a gut-wrenching crescendo, we wanted to know if Kipp’s readers felt the emirate’s image will ever recover. The largest percentage of voters, 44 percent, feel that Dubai’s image has been damaged irreparably, whereas 40 percent acknowledge that the emirate’s image has been damaged, but are confident the emirate will recover. Only 13 percent think Dubai’s image has not been affected by the property crash.

Finally, a mere 3 percent of Kipp’s readers think Dubai rocks.

The results reflect the market’s negative performance in the latter part of 2008. Dubai’s property market experienced an 8 percent drop in prices during the fourth quarter of 2008, the first price drop since the emirate made foreign ownership legal in 2002, according to Colliers International. “Tighter liquidity, more selective lending and growing negative sentiment are all bringing about these changes,” said Ian Albert, the consultancy’s regional director to The National.

The first quarter of 2009 will prove to be crucial for Dubai and its ailing image. Perhaps, with the government’s help, the emirate may introduce more stimulus plans to help boost the real estate sector again, giving investors reasons to feel confident in Dubai’s development plans. Until then, it is difficult to determine whether Dubai’s image will be tainted permanently.

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  1. DG on January 19, 2009 7:37 am

    Dubai remains one of the most awesome cities to live in. I dont work there anymore but own a villa . I remain a believer that quality properties remain a great investment in this city of sunshine. All that needs to be controlled is the supply side of the equation, and the government has the power and authority to do this. That , and the ability of homeowners to have Singapore style permanent residence for themselves and their families. These are the actions that need to be taken now.

  2. Doug on January 19, 2009 12:05 pm

    Dubai will not recover to its 2007/08 peaks.

    Dubai was/is like “Dumb guy who won the lottery” and a 1850’s gold rush town that has now run out of gold!.. People came here made a lot of money and many lost a lot of money. Landlords ripping off expats with these insane rental prices and 1 cheque policy… Sadly, like the gold rush days… all you will have left in a ghost town. Empty building, dozens of vacate villas in the Lakes/Meadows/Springs etc, schools that had no places now do, traffic in mid January like it is in July/August!

    I fear for the place.

  3. dubai property on January 20, 2009 7:37 am

    It willl not tarnish the image of the emirates.Proerty crash is the common phenomenon.Once agin prices will rise.from my point of view,it is the high time to invest in dubai.

  4. Doug on January 20, 2009 11:28 am

    DubaiProperty’s; The question was do you thinks Dubai’s property crash will be tainted! Your comment shows you are either in denial of what is going on around you, Dubai and the whole world or you have a vested interest in trying to talk up the real estate market.
    A property crash with 40%-70% drop in some property prices is not a “Common Phenomenon� as you put it… It is an extraordinary bubble busting collapse of the market!

    Discussing what is happening around us right now is not an opinion it is fact!

  5. redline on January 21, 2009 8:22 am

    Its useless trying to convince the “believers” … they are delusional. Although I’m an investor, I’ve been preaching to my friends involved in realestate that the growth was not sustainable, and the prices were way overvalued. I was subject to all sorts of derision, as they were busy minting $$$. Turns out that instead of saving some of all that $$$ most of them blew it. Now although they are sh*tting bullets as they can’t sell anything, they are still busy talking up the market, telling me its time to buy.

    Getting back to the original question: Is Dubai’s image tarnished? Well, to the “enlightened” folk out there, the Dubai debacle will go down in history as one of the greatest pyramid schemes of all time (Madoff would be proud!). To the masses, who are brainwashed by the stage managed media coverage from sources such as realestate agents and government officials, Dubai’s reputation remains intact.

  6. Stuart on January 21, 2009 8:43 am

    The property bubble has burst for good. the so called boom was nothing but speculation since preperty was vaailable for the fist time to non UAE nationals. Unless the country gives equal rights to its citizens and more importantly right to stay without any questions, the property market will never be the same again.
    Dubai was once a shopper paradise but now today the prices are higher than London Dutry Free. Non of my visiting friends from Australia, Asia or Europe wanted to shop anything in Dubai. I hear even markets like Inida and Pakistan are cheaper then Dubai prices.
    Real Estate people comparing property prices in Tehran, Mumbai, London etc are grossly mistaken. Most owners of property in thosse countries are citizens with equal rights a fact which will never happen in Dubai.

  7. Arshad Khan on February 17, 2009 2:18 pm

    For those who seriously believes that Dubai is still a good investment and that the current downturn is just a “correction”, i can recommend a good shrink.

    Dubai was unsustainable and the global downturn has merely worked to hasten the demise. The place was built on the premise that “keep building and folk will keep buying.” It was the world’s biggest “Ponzi” scheme. It would be a serious denial of the truth to suggest that Dubai is a victim of the downturn like everywhere else. “Everywhere else” has real people with real economies and real commitments. Dubai has and will always rely on foreign labour and foreign investment. When work dries up, foreign labour and investment moves out. It is as simple as that. Dubai may eventually recover, but its salvation lies in going back to its roots and acting as a trading hub for the Middle East and South East Asia.


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