On my drive back from Abu Dhabi after a client visit – I noticed a billboard advertising a certain development that is being planned in Dubai. It sounded very ambitious and intimidating. But will it ever take place? If so when?
Considering the fact that the same developer is finding it tough to complete studio apartments and deliver it on time as promised, a city the twice size of Hong Kong sounds a bit too far fetched. Fat Hopes.
Dubai was boasting of real estate prices comparable to NY and London. All bogus. I feel it was all just a hype to get attention. Now with buyers losing confidence and with no concrete rules on foreign ownership and developers having the right to hike up the maintenance fees according to their interests, the future of the real estate market in Dubai looks bleak. True Dubai was growing faster than it could handle. It will take a lot to buy back the end users confidence. Finally Dubai has realised that Rome was not built in a day.
Dubai I think is going through a correction phase where everything is being brought back to realistic levels. Also hopefully the corruption phase is over too where many developers had run off with end users cash..
2 comments:
trust me the real estate deal is the same every where these days- big promises and the eternal wait for posession, and finally the big anti climax of seeing half filled promises- no gyms, lawns- forget about coaslines!. I wonder whats happening to Satyam's real estate venture- Maytas after it went kaput. What happened to people's money? But this coasline thing sounds very promising, whatever you say :)
but in mature markets you do have the option to go to court right? Here buyers don't have them - nothing is transparent. Its changing slowly into a buyers market.. will take a lot of work and time.
It will be a while before that 70 km coastline project gets started.. may be the billboards might covered by sand dunes by then :-P
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