Dubai : Aer Lingus ceasing flights.

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Perplexed

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Read in the SBP that Aer Lingus are pulling the Dubai route from next year.

Will this have a big effect on the property boom out there from an Irish perspective ?
 
i doubt it very much as irish were buying property out there long before aerlingus announced there flights there. but it a shame that they are stoping this service
 
They're only stopping for the Summer. It's expected to resume again next Winter (though no guarantees of course). Makes sense in a way during the Summer it's too hot for most Irish people over there.
 
Perplexed said:
Read in the SBP that Aer Lingus are pulling the Dubai route from next year.

Will this have a big effect on the property boom out there from an Irish perspective ?
Click to expand...


i think its a sign that perhaps Dubai's run is coming to a gradual end. I mean that in terms of return on investment. they are having a serious amount of trouble with migrant labourers at the moment, and the powers that be there seem to be struggling on how to deal with it. At first they were going to throw all the workers out and imprison a lot of them - realised the next day this would be catastrophic for the construction industry and backtracked, but still put many of the more vibrant protesters in prison.
bottom line is labour costs are going up, bringing up construction costs which developers will add to the price of the unit.
Developers who have long gaps between sales and construction time are going to be in trouble, not making as much profits. I think the workers are looking for a 50% increase.
Mind you the sheik might just step in and pay for everything!, i wouldnt put it past him!
 
A 50% increase for workers would still be meagre. I believe that in some cases it's little more than slave labour. If developers had been fair to the workers it might never have come to this

Also do you not think it must be a bit galling to some of the local & migrant population to see such ostentatious wealth & opulent buildings while they live in poverty ? Surely civil unrest must come to a head at some stage, only thing that stops it is the power of the sheik I reckon.
 
A 50% increase in labour cost will certainly effect your bottom line as a developer - construction, landscaping, finishing - and it will mean a price increase.
Those are the labour costs in the area, its not about the developer being fair. If you go ireland and pay 10euro and hour min wage or whatever it is, thats life in ireland. Where I am now in Asia the average wage is $120 a month. Im not going to suddenly pay everyone $500 because where i come from people get paid more. The cost of living equates to the wages. People can support a family of 5 with just over $4 a day here. The problem in dubai is now the cost of living is increasing rapidly and this has a knock on effect to the end pricing on a number of levels

I dont think there will be a civil unrest issue personally. All those migrants come to work to send money home, so its their choice if they want to travel to dubai to do that. there are too many benefits in dubai and the sheik is doing a good job - if migrant workers started protesting violently they would be ruthlessly dealt with I think
 
As an investor in Dubai i've kept a close eye on all the above points.. flights to dubai are fine. Aer Lingus are running till March and yes resuming in the Winter but Etihad airline fly 3 times a week direct to Abu Dhabi which is only a 40 min drive from Dubai. As for the labourers, not all them have been stricking and unhappy with wages and terms.... it seems to be only affecting some developers like Eemar and such.
 
hi kevinstreet have to say as a non investor just someone who went there I could not believe the building works going on I've never seen anything like it. Just don't know how they'll fill all the bedrooms/offices etc with so much in the pipe line no matter who is flying there. hope it works out for you,
 
Already has worked out for me, bought there about 3 yrs agho and sold some of it a couple of wks ago with a huge profit. as for the supply and demand! if you check with the Dubai dept of trade and tourism they are currently issuing 2000 residential visas a day and have done for the last yr! Will be reinvesting again as if i keep my money over there its entirley tax free.
 
I think you will find that 20% of those gains are due to your friendly taxman.Capital gains due on world wide income/gains, regardless as to weather the money is held oversea's or not.
 
Have to agree with galwayboy

See [broken link removed] and in particular Q19 What happens if I sell foreign assets

You have until Jan 31 2008 to pay
 

Well said. I can't begin to understand why anybody would want to have anything to do with a fascist hellhole like Dubai.
 
Having been there I agree. For the life of me could not figure out why anyone could take the chance to invest there. Fair play to that guy who made a profit though, I'd say you are one in a million as it's an excessively hot ugly place.
 
I can see where there is confusion aboit this issue but if you read the wording of the information on the Irish revenue site it does state that as long as the "gain" made by an Irish resident is not remitted into Ireland it is not subject to Irish CGT. I copied this extract from the revenue site ...... A gain on the disposal of a property located in a country other than Ireland or the UK by an Irish resident or ordinarily resident individual who is not domiciled in Ireland is subject to Irish CGT only to the extent that the gain is remitted to Ireland.
 

I guess there was a presumption among previous posters, including myself, that you were domiciled in Ireland for tax purposes. Not an unreasonable assumption, as I would imagine that the vast majority of posters on this site are both resident and domiciled in Ireland. Therefore, unless specifically stated otherwise, most people are going to give information or advice based on this assumption.
 
It's just the same old guff. Introduce some confusing tax mumbo jumbo which, while technically correct, is of no relevance to 99.99% of readers.
 
hi all,i too have bought in dubai wit profit out of a house i sold over a year ago an think its one of the best places in the world to invest all moneys go in to an escrow account so its safe its the furture that is happening out there like no were else in the world.
 
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