I can see why some may find the idea controversial, but it is true, the market itself is stabilizing but there will be a big correction due to those people who jumped in on “hot” deals made up by the stupid RE agents
You only got conceptual reasons. You didn't give any data point that highlights that it is actually happening. Conceptually you can say any country's real estate could crash due to leverage but the question is there are too much leverage. You didn't share a single data point
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100%, never buy with emotions or pressure from agents, best is to search yourself and ask agents for unique, perhaps distress/offline deals in advance 🙌🏼
Good neutral take on the market.. All data aside, in all sorts of investments, I believe in the saying "You know you got a good deal when you hear it". Right now, I am not hearing of any good deals in Dubai
Agreed! I believe they will come back, but mostly in forms of discounted sales of already purchased ones on the secondary market. The off plans are already too overpriced.
Why do they have to pay a large amount towards the end of 2024 and 2025? Is it because those new apartments that are still being built will enter into the phase of completion in 2024 and 2025?
Yes, and when they do, those people who invested with the purpose of reselling for a profit before the bigger installment comes in - will have to sell them at lower prices to cover for the installments that they weren’t accounting for.
@@AlexGorasov What if those investors are big whales investors? In that case, they can handle a large payment. Based on what you said, it looks like most investors are retail small shrimp investors?
@@betserv.1187 Yes I refer to those investors only in this case, as they were the ones forced into buying on 1% a month or 10% downpayments, which they afforded at the time thinking that they’ll sell and get a big profit before shit hits the fence. The whale investors on the other side will be the ones buying out those deals when they happen.
Big whale investors and educated smaller investors would not buy into those deals at first to start with, they curate their investments and buy rare unique stuff, which obviously grows in value while all the generic developments are being pushed to those shrimp investors like you said.
@@AlexGorasov That was exactly what happened in the 2008 financial crisis in the USA and now with Evergrande in China due to bad loans (subprime mortgages).
do you think this sudden price increase in rental property in Dubai will have an immediate pullback/correction? in our area there's a 50% increase in rental price, which is insane.
i don’t think so, it’s all correlated with the mortgage rates which were pretty high last year, i expect the situation to be the same for some time, until more supply gets on the market and a correction happens
Instead of purchasing properties for flipping, what about considering short-term rentals? This could match a higher demand for travelers in Dubai because of work, tourism, etc
I actually never flipped in Dubai, all my properties are rented and my goal is to build a portfolio long term, so yes I definitely support short term rentals. In fact, I believe this is the most profitable way to maximise your investment right now!
Appreciate your analysis but this is not how the market works in Dubai now. We are short of real estate inventory right now in Dubai because of the reason more and more people are shifting to Dubai not only with the purpose of business or jobs but living. The introduction of the golden visa has made it easy for everyone. It's the end users who are increasing in Dubai not the investors and this is the reason we are witnessing the stable real estate market now and it will continue.
Sure, I agree with that, but here the point was about something else. The video is for investors, and for investors it is important to know that there will be many deals that will pop up at decreased values due to many irrational buyers that cannot keep up with the payment plans. So while Dubai market is growing, for investors who really want to make great returns is better to wait and source those deals rather than buying into new off-plans. That’s it and it’s happening. I see distressed deals every single day.
lol sounds like basic investment advice... no data to show how you figured out how many properties in which area will be handed over in 2024 to 2025...
This part is obviously available but as part of the advisory call, the idea of the video was to suggest on the strategy, then you do the rest of the work or jump on a call with me to discuss
Sorry Brother, the basis of your argument are contrary to what is actually happening on the ground, The economy of Dubai ( surplus economy) the population growth, immigration laws, number of new business setups during 2023 alone, the pressure on rental market, government plan 2040, Government economic plan D33, th eglobal economy, inflation in Europe, political situation in neighbouring countries--leading to HNI migration to Dubai, , let alone Dubai-the brand among global cities all indicate, what you are saying is bulshit. Dubai Property market is still undervalued, and stands at 3rd on the bottom in global property bubble index. The market is all set to attract high inflow of new investors and grow at unprecedented rights. This is still a amazing time to invest and earn strong growth. Yes some of the new developments and communities are hyped by real estate developers and prices of offplan projects seems higher then realistic index. However , in general, there are still numerous communities that offer fantastic pricing and higher rental yields in Dubai, because of genuine demand. Your artificially (ChatGPT) generated text/Voice over does not carry the required empathy. Not buying it.
Who said it doesn't have great projects or numerous communities that have great yields? You perhaps did not watch my other videos where I speak about the actual investable areas and reasons why Dubai is a great investment. In this video I specifically focused on why there will be a crash on the payment plans, and honestly, I see that happening everyday with people putting off their off plan investments at distress deals, there are loads of them available at 40-50% off what they initially paid. I believe you work in real estate and don't really want to hear this, but it is true. Since my videos are targeted for investors, who look at numbers and opportunities rather than empathy, people should be rather careful and await for these deals when they come up instead of jumping right in ;)
Alex made his point which makes sense. It is simple, this success you’re referring to cannot continue forever for the reasons Alex mentioned… if you disagree with that, at least have some self respect and be civilised enough not to call it BS.
Read the market especially for Nakheel Payment plan is 50/50 and sometime easier.. investors aiming to make 100 percent profit while they didnt even complete 30% of original price... they are rushing to sell at premium prices, time will come and they will have to pay full price(rest of 50)... this is the fault of developers with their unrealistic payment plan!!!
I disagree with your thought .. I have been investing in dubai real estate market for 15 years now , i have made an excellent profit. Anyone who wants to invest should now the rules of investment and read rich poor dad book
