I still haven't seen anyone paying 4% agency fees, always 2% on the buyer only (sometimes 1%). Regarding build quality, there's no consensus about newer buildings being better: many new buildings are bad while some old buildings have proven very well built. Regarding the "3-5% price increase for new towers every few months", it might work for a few years but no market grows by 20% yearly for too long. When it stops, this whole logic of buying at whatever price because the next one will be more expensive will fall apart. And when you think about it it's very Ponziesque : I buy at X because the next guy will buy at X+5% soon.
Thank you for questions: 1. Nobody is paying 4%, for sure. But both seller and buyer pay 2% from their side to their agents. In total its 4% reflecting on units further cost. Rising cost of construction is a fact - as any goods and services suffer from inflation. Regarding quality and how thought are new projects - compare same developers average projects to average, good projects to good projects. If you take Emaar - compare some of first Address buildings to the latest and you will see difference. Or compare Sobha's first projects in Hartland to lates handovers - big differnce. Regarding 3-5% increse I didnt mention, i think , one point as to clearify - this logic works on the very first projects in a new area - lets say first 3-5-10 buildings. And to uderstand if it still works or not every next launch we comnpare price per sq ft to alike communities (lets say first line from the sea with beach access - very scarce and valuable property. It has established price per sq ft aprox 3-3,5k AED. If a new project in a new area launches at 2,2 k AED - its a proper stage to buy)
So basically, flipping will be a poor option because your property may be falling in that " ready Properties" bucket and may not give you good returns?
I still haven't seen anyone paying 4% agency fees, always 2% on the buyer only (sometimes 1%).
Regarding build quality, there's no consensus about newer buildings being better: many new buildings are bad while some old buildings have proven very well built.
Regarding the "3-5% price increase for new towers every few months", it might work for a few years but no market grows by 20% yearly for too long. When it stops, this whole logic of buying at whatever price because the next one will be more expensive will fall apart. And when you think about it it's very Ponziesque : I buy at X because the next guy will buy at X+5% soon.
Thank you for questions: 1. Nobody is paying 4%, for sure. But both seller and buyer pay 2% from their side to their agents. In total its 4% reflecting on units further cost.
Rising cost of construction is a fact - as any goods and services suffer from inflation.
Regarding quality and how thought are new projects - compare same developers average projects to average, good projects to good projects.
If you take Emaar - compare some of first Address buildings to the latest and you will see difference. Or compare Sobha's first projects in Hartland to lates handovers - big differnce.
Regarding 3-5% increse I didnt mention, i think , one point as to clearify - this logic works on the very first projects in a new area - lets say first 3-5-10 buildings. And to uderstand if it still works or not every next launch we comnpare price per sq ft to alike communities (lets say first line from the sea with beach access - very scarce and valuable property. It has established price per sq ft aprox 3-3,5k AED. If a new project in a new area launches at 2,2 k AED - its a proper stage to buy)
So basically, flipping will be a poor option because your property may be falling in that " ready Properties" bucket and may not give you good returns?
@@AshutoshNevrekar how did you make this conclusion? Please watch video attentively
I am getting offered a one bed apartment in Ras Al for £1.6 AED opposite the casino it's off plan would you say it's not worth it?
Nothing in Ras Al is worse that) risky investment
@@KamilMagRealEstate can you make a video with your opinion on RAK?
@@gtube2437 will do