PILOTGUY

Why would you say something that???

threeighteen

Earth.

You seem very threatened, do you own property in Dubai?

Because it's true. Property values are on the decline as you read this:

Continued decline expected for Dubai property prices | Real Estate | AMEinfo.com

Also, I'm confused on why buying a bunch land with nothing but mere sand in the desert is a good idea period, even if prices were going up. Dubai will be 100% out of oil by 2025 or so, and will have nothing else besides an airline or two and a possible cargo mega-hub to drive their economy. They have no resources, period.

They are spending millions to become a one-trick-pony tourist destination, but who the hell would want to go there? Emirates is mostly just connecting traffic.

LAS is struggling, but they already have a world renowned reputation and a decent climate. To think DXB will do better over the long term is rather absurd...

trenttdk

Three18,

Can't help but wonder if you've actually been to Dubai? Last I checked oil income was less than 3% of the Emirate's income. That was several years ago so I suspect it's less than that now. You've heard of Singapore, or Hong Kong? How much do you reckon those two earn from resources? House prices in either place?
Dubai has historically been a trading hub. That's the plan for the future. I can't remember the specific numbers but something like 80% of the world's population lives within about 8 hours flying of Dubai. You can connect virtually any two points on the planet using a 777 and a stop in Dubai.

Don't know how LAS figures in the discussion? While I think it's a great spot, saying it has a 'world renowned' reputation screams hyperbole and and a narrow, Americanised view of the world. It's wild popularity for Americans is not really shared by the rest of the world.

The speculative property bubble built up pre-GFC in Dubai will definitely take time to sort out, just like it will in the whole of the US. However, long term the future for Dubai is bright.
Just my two Dirhams/ cents

threeighteen

Yes... the climate is horrendous and the government is just as bad.

Are you aware of the debt they have?

Singapore and Hong Kong have limited land available for purchase, which causes it to be worth more. There's no room for expansion. Dubai has an entire desert to expand into, there's not going to be any rise in property prices there due to a land shortage.

Singapore and Hong Kong also have more tolerable governments (in most aspects), and much better climates.

That's why I said, there's going to be a ton of connection traffic, but not much O/D traffic. The only thing that is going to make them money is travel and trade, but when they are eventually bypassed by direct flights on faster or more fuel efficient aircraft, what then? Or what happens when the world economy goes down the tank once China stops growing? DXB is basing their entire economy on volatility, and it will have some serious consequences.

I think LAS is a craphole, but everyone I've talked to abroad wants to go...

It figures in, because LAS has a tourism economy, like DXB is trying to build, but likely won't succeed with. The only reason why I'd want to go to Dubai is to save some money on a ticket by connecting there or something...

Respectfully, I disagree. And you're still missing the point:

1. Dubai property values are on their way down, which makes this a bad time to buy period.
2. Dubai does not have a land shortage to cause prices to go back up any time soon.
3. Dubai doesn't have much potential for growth beyond their trade/travel industry.

Those three reasons alone indicate that property value there won't recover for a long long time.

It's basic economics, there's tons of supply, with not much demand or foreseeable demand.

Grumble

What you fail to understand is over there, the gov't controls the supply. If they put a moratorium on building or expansion, guess what just happened to the supply? (Hint: it becomes finite)

threeighteen

Which restricts growth, as the higher prices get for essentially worthless land, the less people will be able justify it and just go live somewhere else. So they'd be shooting themselves in the left foot to save the right foot.

One such economic action can not occur without having ripples.

trenttdk

Six months of the year are lovely, two months are OK and four months in Summer I agree with you. Sort of like LAS..........

You don't seem to really understand that basic law of economics. I own a house in Australia, probably the most sparsely populated country in the world. Using your theory, that land should be worthless. Supply and demand, right? No shortage of supply so price goes down. Same in the US. No shortage of land there. Of course, it doesn't work that way. Some land is more desirable than others, it's finite and therefore worth more. Same in Dubai. Location, location, location. Land near the water, or in the middle of town, is finite and that famous law will eventually work it's magic. You just have to buy in the right place, wherever that may be....

Been to either place from May to about September? Air conditioned space in one country is much the same as an air conditioned space in another. Tolerable government? By what measure? They all provide world class services to their citizens and, in the cases of Dubai and Singapore, the leaders are held in very high regard by their citizens. Can't speak for Hong Kong as I've never spent much time there. Don't make the western mistake of thinking that a government that isn't democratic is, by definition, bad. Their systems aren't for me but all three seem to be doing OK.



Continuing the Singapore and Hong Kong comparison, how much O/D do they have? They're both trade and travel hubs. Are they doomed, too? World economy tanks due China? Crackpots have been predicting the end of the world economy probably since the beginning of the world economy. Maybe they're right this time, but I doubt it.

In 2010 (last year I could find figures for) Dubai ranked eighth in visitors worldwide. Las Vegas wasn't even in the top twenty. I know it's very popular with Americans but internationally it doesn't rate anywhere near as well. Obviously Dubai isn't your cup of tea. Fair enough but plenty of others disagree.



See above.

fatbus

It's simple 318 stay were you are dont come you would hate it.

ps ; or have you already been turned down or were the one who was sent back recently



















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PILOTGUY

Interesting as one of the major builders just sold 66 plots on the Palm Jumeirah for between $150-$300 per square foot. Before it was even built, the available plots were sold out in 3 days.

The values of property in Dubai got over inflated due to supply and demand. The population of Dubai grew at a faster pace than the absolutely massive labor force could build. People were walking into offices and buying whatever villa or flat they could, seeing only a model or maybe plans. They would walk out the door and flip it before they got to the end of the line for tens of thousands of dollars in profit...in minutes. So while your article says they are going to decline, it will be slight. I watch the prices weekly, and within the past year, they have not declined, or at least in the areas I keep tabs on. (No, I don't own property here)

The rest seems to have been cover by a few other posters, but you clearly have zero idea about where Dubai gets it's money. Dubai may not be a big vacation spot to people from the USA because of the immense distance, people from the rest of the world flock here. It already is a major tourist destination.

And no, I don't think he/she feels threatened by your posting, it is just that nobody on APC wants to see this site turned into a bunch of senseless, worthlessly negative rants that go on at the site you should keep this on.

Good luck.

fullflank

ps ; or have you already been turned down or were the one who was sent back recently

Can you elaborate on what you mean by this? Failed initial?












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