The World Project- Ireland in Dubai

Does anybody else find the whole concept to be in poor taste and a bit " chavtastic"?
It brings to mind some other " iconic for their time" developments like Brazilia, with building in the shape of jet planes ( How 1950's) and Malaysias idea of setting up and internet city in the mid nineties.
Not to mention the horrendous carbon emission that will ensure from people jetting from Ireland to sit in an airconditioned box in the desert just to go skiing!
 
Frank McDonald came out strongly against the project last week in the Irish Times, but then he would of course! There is no doubt that this whole project is very unsound from a point of view of ecological sustainability.

McDonald made an interesting economic point though; he wondered what effect the 100 fold increase in property would have on price on a purely supply/demand basis. Most comentators could answer that one -- inflate supply and deflate price is the norm and that basic rule can almost never be bucked.
 
auto320 said:
McDonald made an interesting economic point though; he wondered what effect the 100 fold increase in property would have on price on a purely supply/demand basis. Most comentators could answer that one -- inflate supply and deflate price is the norm and that basic rule can almost never be bucked.
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There are exceptions to this rule and Dubai is one of them.
If the majority of buyers are using cash, as in Dubai, supply can be very inflated, however the price does not drop because the investors are in a position to wait until demand catches up.
It might not make financial sense, but it happens in Dubai. Developers in Dubai also regularly hold back properties on 'sold out' developments.

The figures that the Island of Ireland are quoting are based on a projected increase in demand. It is this projected increase in demand that is questionable.

Admittedly, the figures are extremley optimistic, however, although I am not prepared to purchase an apartment myself, I would'nt write them off just yet.
 
hi, new to site. Any views on investing in a hotel development on the waterfront. €220k investment with a return of €800k within 2 yrs. it sounds too good to be true but this is info. i got
 
Does your mum know you are up this late ?. You obviously believe in the Tooth Fairy & Father Christmas as well !.
 
It is an Irish company raising equity for a developer building the hotel by offering shares to its clients. The property is then sold/leased within 2 years with a predicted return of up to 800k per share.
 
remaerd said:
It is an Irish company raising equity for a developer building the hotel by offering shares to its clients. The property is then sold/leased within 2 years with a predicted return of up to 800k per share.
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Hi remaerd - have you taken time to read the thread here - there is more than an inkling that one needs to be very wary of investing in Dubai
 
remaerd said:
It is an Irish company raising equity for a developer building the hotel by offering shares to its clients. The property is then sold/leased within 2 years with a predicted return of up to 800k per share.
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Ah - an Irish company? It must be true so. Lump your money into this baby and sit back while it rockets!

(I am being totally facetious in case it's not obvious).
 
remaerd said:
It is an Irish company raising equity for a developer building the hotel by offering shares to its clients. The property is then sold/leased within 2 years with a predicted return of up to 800k per share.
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It never ceases to amaze me that people can actually take a seller's 'prediction' at face value, or even believe it for an instant. A return on a property predicted with any certainty is impossible. A return predicted from someone trying to sell you someone is a joke and a laughable one. I think people on askaboutmoney are blue in the face trying to tell people this. IGNORE anything a seller predicts regarding returns. He might as well tell you the predicted return is €1m, or €5m for that matter. If I tell you the predicted return is 10m, does that make it more attractive? He's only pitched is at 800k 'cost you might just believe that.
 
Hmm, AL are considering pulling out of Dubai...

Still, I reckon that return sounds pretty savage - go for it! Any spare units? Why is the sales man even selling these - surely they would have snapped them up for themselves?? ;)
 
auto320 said:
Regular readers on this forum will know my views on Dubai in general -- its an updated and more sophisticated version of the Florida swampland scam of the 1950s. The marketing of Dubai in Ireland to date has been almost entirely based on projected rentals, in a tourism economy that is almost entirely hotel based. The only high-volume apartments that can be rented in Dubai, and at small rents at that, are the ones rented to low-paid workers in the service sector. The absence of a conveyancing system or proper ownership rights is a factor that is never mentioned by the marketing companies. Buyer definitely beware on this one.

The best way to sell this garbage is to target each country in the "world" at the real version of that country, as in this case. The island of "Ireland" (a pile of sand that barely juts above the level of the sea) was bought by a UK investor as far as I am aware (I am open to correction) and he will then re-sell bits of it to gullible Irish with money burning a hole in their pockets. Promises of high yields and appreciation, and no mention that the whole ownership issue is at the whim of the local sheik, and they will queue up to throw money at it. A further marketing advantage is that the "brag factor" in Irish golf clubs etc will ensure that loads of Irish get in line for this rubbish.

Will it yield 8% pa and 25% appreciation? If you will pardon the vernacular, it will in its hole!
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This has got to be my favorite post and spot on.
Well done Auto..since sadly passed away....if only more listened to him.
 
A link for the benefit of some of the more naive sort who oftentimes wander these parts. There are more in depth reports but I can't be bothered.

If all the report said was "WELL DUH!", that would be enough.
 
This one is going to be big, I think bigger than anything we've seen so far. I wonder will Dubai cease to exist (like Planet of the Apes). I've thought it for a long time.

Do Irish banks have much exposure?

(Who is Robopaddy?)
 
Bronte said:
This one is going to be big, I think bigger than anything we've seen so far. I wonder will Dubai cease to exist (like Planet of the Apes). I've thought it for a long time.

Do Irish banks have much exposure?

(Who is Robopaddy?)
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I'm sure you've met him. Also known as Canny McSavvy. Ran around the world buying property simply because it was cheaper than in Ireland, therefore it must be good value. Now has 10 apartments in Dubai, Bulgaria, and other destinations worth a quarter of what he paid, and is blaming the banks, the government, the media, his wife and St Anthony because they all made him do it.
 
having only visited recently Dubai is a hellhole, from employment agent tricking bangladeshis into jobs paying a fraction of what was promised, passports being held by employers living in ghettos, hotels charging 150usd to just enter, beaches you would melt on, with nothing to do but treck around a handful of malls, unfortunate stories of irish developers taking their lives, stay clear....unless you like snowboarding indoors, in which case worth a visit
 
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