For some, a home remains a dream

By Anupa Kurian, Readers Editor Published: December 06, 2008, 00:14 www.gulfnews.com

Dubai: It is the expatriate dream - a home and savings. Most work hard to realise this vision of hope and painted rainbows.As the realty boom in the UAE spread its largesse, many residents decided to buy. For many it was an investment, to a few the setting up of home.  The graph looked well placed to reach its hungry fingers to the sky but the global credit crisis reared its ugly head.Overnight, investors turned ultra-cautious. As they cast furtive glances from the shelter of safe investments, the realty sector decided to make a move. They are offering monthly instalment options that don't require people to take a loan. Even better, there are offers of easy rental payments.What do Gulf News readers say? Will they bite? Noel Malicdem, a resident of Al Ain and an architect by profession, was very clear on his realty plan. The 39-year-old father of two, said: "No, I would not think of buying. Financially I cannot afford it. It is still too expensive."Malicdem said he falls in the middle-income bracket and lives in a villa with his family. He has been in the UAE for over two years."I would not prefer buying property because you don't know the length of your stay here. This is the reason the realty sector would not attract many middle-income buyers."

Dr Saji Pillai, a dentist living in Ajman with his family, in an apartment, agreed. The 32-year-old has been in the UAE for "nearly five years". He has a one-year-old son.

"I would not invest in the current format of the realty sector. The prices are totally down. But we have to get back profit on the investment. With what is happening that does not seem likely. I am not too keen on investing," he said.

He added that this is because "investing is easy in the UAE. You get a lot of options... wouldn't want to go ahead with property keeping in mind the volatility of the market. I would much rather invest in something else."

Australian expatriate Kellie A. Drayton who has been in Dubai for eight years said that the new offers are just illusions being put up for sale.

The 24-year-old owner of Emirates Writing Studios said: "There is not enough security in the market. These are just quick fixes. In a few years' time the people who buy now will realise that the market has turned and the interest rates will go back up. They will end up realising that they cannot make the instalment ... they cannot afford it."

Contrary to the popular investment notion of buying in when the market is down, Drayton, a mother of two, advises that if you could not afford it earlier, the same would hold true eventually, so "stay out".

"It may be good for the companies to keep people buying," she said.

Mohammad Furqan Khan, a 54-year-old Indian expatriate and an educator who has been in the UAE for over 15 years feels that nothing can attract investors better than "market transparency".

The father for four said: "The terms and conditions of the realty sector favour developers. Speculators have pushed up prices. And there are other hidden problems. Prices were going up in a month by 15 per cent."

The advertisements are "alluring and misleading" but fail to convey the risks he said.