Piers Morgan on Dubai
Discussion
mickken said:
Stu247 said:
The bubble has burst in Dubai too by the sounds of things..100,000 workers in the construction industry left last month.
.....and they have 100k Tonnes of Steel clogging up all the Ports.Property over there is going south quicker than Jacques Cousteau's diving belt and people are really starting to get very, very worried. My Brother's boss has deposits down on 30 flats (off plan) totaling £600k....and he has just walked away.
That place is so incredibly f
ked it is beyond all comprehension. When a town that's been in boom for 40 years go's bust....it really go's bust.mickken said:
Hitch78 said:
mickken said:
Stu247 said:
The bubble has burst in Dubai too by the sounds of things..100,000 workers in the construction industry left last month.
.....and they have 100k Tonnes of Steel clogging up all the Ports.Property over there is going south quicker than Jacques Cousteau's diving belt and people are really starting to get very, very worried. My Brother's boss has deposits down on 30 flats (off plan) totaling £600k....and he has just walked away.
That place is so incredibly f
ked it is beyond all comprehension. When a town that's been in boom for 40 years go's bust....it really go's bust.Dubai as a place is soon to run out of oil and will be relying on money generated by tourism. At the moment it is holding it's own re: Tourism, but it will be interesting to see how they do when they haven't got the cash to build "The Palm", "Atlantis" and "The World" every few years!
We had some meetings over there before Christmas and one of the "Sons" said "His Grandfather turned up to meetings on Camels, his Father the same. I go to meetings in a Rolls Royce and my Son will go probably in a Lamborghini....but his Son will go on a Camel"......he was very serious.
I love the place and have had family living there since 1988 and have seen the changes happening yearly. It is a condemmed city. Several friends (BTL'er idiots) have lost everything.
Some reports talking of house price falls of 60% but since they rose over 300% recently that is hardly surprising. People who borrowed huge sums to pay 10% on multiple off-plan apartments or villas will frankly get exactly what was always coming, if you ride a bubble of that magnitude with no way to cover your commitments if the prices stop rising, you are playing with fire.
The big job losses to date are generally labourers brought in from the Indian Sub Continent, the white coller and western layoffs have really only just started and these are what will drive property down, hopefully to close to where is used to be making the place affordable again.
The same applies to the tourist sector, prices of $400 dollars a night for a cheap bedroom factory on the beach with luxury places asking $600 were never going to be sustainable, if they fall to $150 then these hotels will simply be back where they were 4 years ago probably still in profit. Same for airfares which are already falling fast. Reducing both to reasonable levels will bring people baack as soon as the EU starts to come out of recession, with the advantage that their might be more to do here by then, in the meanwhile the ME and India will probably fill their boots of the cheap deals.
Greed on the part of property developers, speculators, hotels and mall owners has come back to bite their arses, I for one am not sorry, I just hope the fallout is not too great.
willmcc said:
mickken said:
Hitch78 said:
mickken said:
Stu247 said:
The bubble has burst in Dubai too by the sounds of things..100,000 workers in the construction industry left last month.
.....and they have 100k Tonnes of Steel clogging up all the Ports.Property over there is going south quicker than Jacques Cousteau's diving belt and people are really starting to get very, very worried. My Brother's boss has deposits down on 30 flats (off plan) totaling £600k....and he has just walked away.
That place is so incredibly f
ked it is beyond all comprehension. When a town that's been in boom for 40 years go's bust....it really go's bust.Dubai as a place is soon to run out of oil and will be relying on money generated by tourism. At the moment it is holding it's own re: Tourism, but it will be interesting to see how they do when they haven't got the cash to build "The Palm", "Atlantis" and "The World" every few years!
We had some meetings over there before Christmas and one of the "Sons" said "His Grandfather turned up to meetings on Camels, his Father the same. I go to meetings in a Rolls Royce and my Son will go probably in a Lamborghini....but his Son will go on a Camel"......he was very serious.
I love the place and have had family living there since 1988 and have seen the changes happening yearly. It is a condemmed city. Several friends (BTL'er idiots) have lost everything.
Some reports talking of house price falls of 60% but since they rose over 300% recently that is hardly surprising. People who borrowed huge sums to pay 10% on multiple off-plan apartments or villas will frankly get exactly what was always coming, if you ride a bubble of that magnitude with no way to cover your commitments if the prices stop rising, you are playing with fire.
The big job losses to date are generally labourers brought in from the Indian Sub Continent, the white coller and western layoffs have really only just started and these are what will drive property down, hopefully to close to where is used to be making the place affordable again.
The same applies to the tourist sector, prices of $400 dollars a night for a cheap bedroom factory on the beach with luxury places asking $600 were never going to be sustainable, if they fall to $150 then these hotels will simply be back where they were 4 years ago probably still in profit. Same for airfares which are already falling fast. Reducing both to reasonable levels will bring people baack as soon as the EU starts to come out of recession, with the advantage that their might be more to do here by then, in the meanwhile the ME and India will probably fill their boots of the cheap deals.
Greed on the part of property developers, speculators, hotels and mall owners has come back to bite their arses, I for one am not sorry, I just hope the fallout is not too great.
)Dubai was inevitably going to go bust;
oil rapidly running out
most of the income generated is from tourism
Real estate market is tanking
Plus there is no manufacturing base. It's almost entirely a services industry.
What they need to do is bring a few million Chinamen over and start producing replicas of everything on the market. Bingo, problem solved.
In all seriousness, had Dubai had a manufacturing base it could have weathered this onslaught somewhat better.
oil rapidly running out
most of the income generated is from tourism
Real estate market is tanking
Plus there is no manufacturing base. It's almost entirely a services industry.
What they need to do is bring a few million Chinamen over and start producing replicas of everything on the market. Bingo, problem solved.
In all seriousness, had Dubai had a manufacturing base it could have weathered this onslaught somewhat better.
unpc said:
Was on holiday at Christmas and this knob was there. What a smug . He was strutting round hoping to be recognised but everyone ignored him.
He was at the Beverly Wilshire in LA one of the times I was there - strutting round all day (presumably from his pool to the room and back.....and again...and back...), hoping to be recognised. Bizarrely he seemd to be wearing a bath robe every time I saw him. Berk.. He was strutting round hoping to be recognised but everyone ignored him. Sounds like a load of bks to me:
"Houses are now worth six times more than when the development was first built six years ago."
No, they're not
"She reveals that she pays £32,000 a year to rent her home - a figure set to almost double and says life there hasn't met her expectations. "
Wrong - there is a rent cap
Usual crap from tabloid hacks
ks to me:"Houses are now worth six times more than when the development was first built six years ago."
No, they're not
"She reveals that she pays £32,000 a year to rent her home - a figure set to almost double and says life there hasn't met her expectations. "
Wrong - there is a rent cap
Usual crap from tabloid hacks
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