Sports city

This is a very interesting post which covers the Sports City development in Dubai, an area of the world which always splits the opinions of investors – is it safe, are prices too high, why subject yourself to the political risk? In truth these are not new arguments against investment in Dubai real estate , but they are probably more relevant today than they have been for some time. There also seems to be some concern about the standard of some developers in the area, with some of the newer companies struggling to complete developments on time.  This post reflects many of the concerns you should consider when dealing in any overseas market especially at a time of increased security risks in the area of the Middle East.

While there are few areas such as Dubai which can split investor opinions down the line, there are valid points on both sides.  Dubai has long been seen as the business gateway to the Middle East, and as such it has attracted a barrage of western world investment both in properties and business.  However, there is a real political risk in the area at the moment, and at some point (were this to continue) it may well dampen demand in the property market.  On the positive side, we hear about prices being too high compared to other areas of the world, well did you know that Dubai prices are substantially lower than London? At this moment there is still demand, but the amount of developments soon to come on line will hoover up a great chunk of this demand.  At some stage prices will steady, if not drop back a little, and the serious investor may look to take advantage of any fall back.

Dubai Property Investment

This post has attracted a whole host of useful investment information, areas to look at, what you can expect and what you should be wary of.  However, frighteningly there are no real words of caution, something which you would expect in any market as a “wake up call” to those thinking of making a quick buck.  The area seems to be awash with the next “big business hub” and while there is no doubt that some will benefit from the business angle, some areas will struggle.  Unfortunately in the past we have seen situations where everyone is bullish ahead of a pull back in the market, let’s hope that this is not happening in Dubai.

Like the stock market crash of 1987, prior to which everyone was bullish and those making negative comments were ignored, we seem to be seeing a tide of positive thoughts and comments about Dubai, with some ignoring the downsides.  Lets face it, every market has a potential downside, whether it be political risk, over heating or over saturation (all arguments which could be aimed at Dubai) and it is healthy to be skeptical sometimes,   Be careful not to get drawn into the vast array of “hot spot” areas where there is “easy” money to be made for “little” risk – there is no such thing as a free lunch!

Commercial property in Dubai

Are we seeing signs of saturation in the Dubai housing market, with a number of investors now turning their thoughts towards the business sector?  While it may not mean that the housing market is reaching saturation levels, it is interesting to see that some are taking the sensible route of looking at business areas.  While there is a great risk in gambling on the next big “business hub” in the area, the potential rewards are enormous if you are right, and little real downside if you are wrong. Many people seem to forget that it is new business which attracts investors to the housing market, with a need for local services to attract residential property investors.

It is both a relief and interesting to see that some investors are turning their attentions to the new business areas springing up around Dubai.  While the influx of new businesses looking for an exposure in the Middle East continues, some of the more traditional business areas are being shunned for the more modern, flexible areas in other parts of Dubai.  This has opened up a very useful business investment opportunity, although is has to be said there are risks that the “new” areas may not attract as much business as they hope.  Trying to guess the business market is difficult, more so with the probable onset of a US recession – only for the brave!

International City Retail Shops

This post blows open the whole issue of opening and trading as a business in Dubai, the problems with paperwork, licenses and retail shop prices.  The range of quality in posting is there for all to see with some a little light in substance, while others offer places to visit, an indication of rates and the paperwork required.  It seems that unless you are a multi-national business it can be difficult to open a new business in the area. However, there are some interesting comment about some of the better developments which are offering a mixture of residential and commercial properties – two elements which are essential if any area is to thrive.

Recent comments about Dubai and the potential for the property market have tended to over look the often strict business regulations in the country.  Unless you are a multi-national it can be difficult to obtain the correct paperwork at a price you can afford, and unlike some areas of the world there is no cross over between business and residential property – the allowable uses are clearly defined.  The cost of operating a business premises in Dubai seems to be a lot more expensive than places such as London, something which seems to be over looked by many.  This post will certainly be an eye opener for some!

Rental Agencies in Dubai

Again, this is an interesting post for those looking to invest in lands where they may not be present and able to look after a property.  It brings the subject of management companies to the fore, how much they charge, what they offer and if they are reputable.  Property “hot spots“ such as Dubai will always attract varying qualities of managing agents, with many investors tending to go for the cheaper options – often to their long term detriment.  There is no doubt that you need to do your homework, you need to check out the market and also remember that if you want quality you will need to pay the price.

It seems that a great number of people who have invested in areas such as Dubai have failed to take into account the cost of someone managing their property on their behalf.  When prices where flying high and profits were easy to come by this was not a problem, but as profit margins tighten many are only now beginning to see the costs incurred by hiring property management companies.  If you are not in the area to look after your property, a management company is essential to protect the long term value of your investment.  These are one of the true costs of investing in non-domestic markets, and while you may not like them, they are vital!