Delayed or Suspended Developments

Investors who bought raw lands in prime areas, intended to build prestigious projects in trend during real estate boom. Land/Building costs etc were high during projection and investors decided not to proceed with development due to the sudden economy downturn when market plummeted.

Being a developer or investor, will you proceed to build the building or hang on to the raw land in view of potential returns when land prices escalate in many years down the road? Or, proceed to build the desired prestigious units at 1/4 projected cost earlier?

Many of the developers decided to hold on or cancel off-plan development in view there's no buyers with the over flooded of ready units, with the golden equation : Current Supply greater than demand.

However, they've also forgotten that when there's crisis/threat, it also poses opportunity.

For individual property buyers : -

If you are buying for own use or investment, do not overload yourself with mortgage loan. Always set a sum of money sufficient to service your home loan x a year incase of job loss. Don't buy just because others said it's good time to buy as price is low. Current rental yield may not be able to cover your loan interest in 3-5 years. Unless you are one of those with the extra pennies and you are sure you can afford to hold on to the property for at least 5 years later.

If you are free, drive around dubai and you will notice alot of rented/sales banners as compared to 2 years ago! Are there so many people around to rent the place if you are buying for investment? The luxury of quick high turnaround of ROI no longer exists as ccompared to many years ago. Moreover, the mega developments that offered thousands of units in Motorcity/JVT/DSO etc will be ready in near future but there are still many vacant units in JLT/DM/Business Bay etc.

Again, buying power and intention has changed too. Previously, buyers buy for the prestige location even they can be paying over a million for a pathetic 400 sft area. Buyers now are more realistic than materialistic. They knew if they can buy a much bigger unit in some area compared to paying X price for a very small unit.

I may be wrong but this is just an opinion of a small property buyer that experienced the ups and downs of real estate investments. Don't quote me for that! Again, do your homework first before you invest in anything.