Has it really faltered :) Such halt like situation was always on cards, that is how the real estate markets function. Almost all major real estate markets in the world have gone through such phases (except some exceptional cases). However, if you really want to pinpoint one of the major causes, then it has to be the speculations. Most of the investors, you were talking about in your questions turned out to be mere speculators.

Has it really faltered :) Such halt like situation was always on cards, that is how the real estate markets function. Almost all major real estate markets in the world have gone through such phases (except some exceptional cases). However, if you really want to pinpoint one of the major causes, then it has to be the speculations. Most of the investors, you were talking about in your questions turned out to be mere speculators.

Saadi is correct, real estate markets always tend to behave like this. There are always peaks and troughs and we are just seeing one of the troughs now. Mind you a lot of investors did ride the wave when it was on its peak and no one was complaining then and such hard times are inevitable in the real estate world.

Dubai will be out of this crunch sooner than later and we will all be happy then. If we invest carefully, spreading our risks and holding on to completed properties then there will just be a happy happy situation.

Certain areas in Dubai have already stabilized and a gradual upward trend is being noticed in terms of prices. So I definitely agree with Saadi, The market hasn’t faltered, its just going through a rough patch.

Saadi is correct, real estate markets always tend to behave like this. There are always peaks and troughs and we are just seeing one of the troughs now. Mind you a lot of investors did ride the wave when it was on its peak and no one was complaining then and such hard times are inevitable in the real estate world. Dubai will be out of this crunch sooner than later and we will all be happy then. If we invest carefully, spreading our risks and holding on to completed properties then there will just be a happy happy situation. Certain areas in Dubai have already stabilized and a gradual upward trend is being noticed in terms of prices. So I definitely agree with Saadi, The market hasn’t faltered, its just going through a rough patch.

it was like a cake of nice blackforest and every one from every part of the world came to have a bite.... now if the buying/selling procedure was more organized and controlled by rules from rera nothing from this wouldve occured...or at least the financial crises for realeastate will be less..............and god knows what will happen in the future.

it was like a cake of nice blackforest and every one from every part of the world came to have a bite.... now if the buying/selling procedure was more organized and controlled by rules from rera nothing from this wouldve occured...or at least the financial crises for realeastate will be less..............and god knows what will happen in the future.

It hasn’t faltered, its crashed!
From 2005 to mid 2008, the Dubai property market was a one way bet. Everyone made money and lots of it. Due diligence and common sense went out of the window because it was possible to make money in days (sometimes hours) just by getting into new developments quickly and selling on. ‘Flipping’ was the name of the game and no one cared if the development made sense or the developer was reputable. There was no regulation and anyone could set themselves up as a developer or an agent and as long as the money kept flowing, no one objected.

Inevitably, there was always going to be a correction at best or a crash at worst because the speculators (both the investors and developers) were making financial commitments they couldn’t fulfill believing they could sell on before their payments had to be made. This was fine as long as there was confidence in the market but once that disappeared the ‘flipping’ business model was not sustainable

The catalyst for the crash and the reason for its severity was the worldwide economic downturn which resulted in an overnight tightening of liquidity. Consequently, neither individuals nor corporates had the resources or the appetite to continue to invest/speculate and the ‘plates stopped spinning’. A lot of investors and developers were left with properties, at one stage of development or another, that they could neither sell nor continue to make payments on and confidence in the market evaporated.

First there was denial, then panic and now recriminations with everyone blaming someone else for their own misfortune. Disputes cannot be easily settled because there are no tried and tested property laws so consequently, disputes are being dragged out and Dubai has suffered from some bad press.

Certain high profile developments are now ‘on hold’ and may remain so permanently e.g. the World, Palm Jebel Ali, 50% of the towers in Business Bay and most of Dubailand. However, others are still OK (Burg Dubai and Palm Jumeirah) and life will go on. Distress funds are now active, buying certain off plan properties at a big discount and as long as Dubai continues to be an attractive country for tourism and business it will recover through market forces. In addition, they have the necessary cash to fund the recovery because they’ll get it from Abu Dhabi.

It hasn’t faltered, its crashed! From 2005 to mid 2008, the Dubai property market was a one way bet. Everyone made money and lots of it. Due diligence and common sense went out of the window because it was possible to make money in days (sometimes hours) just by getting into new developments quickly and selling on. ‘Flipping’ was the name of the game and no one cared if the development made sense or the developer was reputable. There was no regulation and anyone could set themselves up as a developer or an agent and as long as the money kept flowing, no one objected. Inevitably, there was always going to be a correction at best or a crash at worst because the speculators (both the investors and developers) were making financial commitments they couldn’t fulfill believing they could sell on before their payments had to be made. This was fine as long as there was confidence in the market but once that disappeared the ‘flipping’ business model was not sustainable The catalyst for the crash and the reason for its severity was the worldwide economic downturn which resulted in an overnight tightening of liquidity. Consequently, neither individuals nor corporates had the resources or the appetite to continue to invest/speculate and the ‘plates stopped spinning’. A lot of investors and developers were left with properties, at one stage of development or another, that they could neither sell nor continue to make payments on and confidence in the market evaporated. First there was denial, then panic and now recriminations with everyone blaming someone else for their own misfortune. Disputes cannot be easily settled because there are no tried and tested property laws so consequently, disputes are being dragged out and Dubai has suffered from some bad press. Certain high profile developments are now ‘on hold’ and may remain so permanently e.g. the World, Palm Jebel Ali, 50% of the towers in Business Bay and most of Dubailand. However, others are still OK (Burg Dubai and Palm Jumeirah) and life will go on. Distress funds are now active, buying certain off plan properties at a big discount and as long as Dubai continues to be an attractive country for tourism and business it will recover through market forces. In addition, they have the necessary cash to fund the recovery because they’ll get it from Abu Dhabi.

Hi

Dubai real estate market exactly fall off after the ramadan 2008, one is the reason financial crises and second is many off plan projects launched by the developers which more than 80% money stuck in those projects.

Hi Dubai real estate market exactly fall off after the ramadan 2008, one is the reason financial crises and second is many off plan projects launched by the developers which more than 80% money stuck in those projects.