Comments on: What Does Dubai Mean? http://www.margolisadvisory.com/blog/2009/11/what-does-dubai-mean/ Wed, 25 May 2011 20:01:03 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: wheyp.roteinsideeffects http://www.margolisadvisory.com/blog/2009/11/what-does-dubai-mean/comment-page-1/#comment-56 wheyp.roteinsideeffects Mon, 21 Dec 2009 07:44:32 +0000 http://www.margolisadvisory.com/blog/?p=89#comment-56 Very great website. The info here is truly useful. I will invite my friends. Cheers Very great website.
The info here is truly useful.

I will invite my friends.

Cheers

]]> By: forexstrat_egy http://www.margolisadvisory.com/blog/2009/11/what-does-dubai-mean/comment-page-1/#comment-55 forexstrat_egy Mon, 21 Dec 2009 00:01:25 +0000 http://www.margolisadvisory.com/blog/?p=89#comment-55 I am definitely bookmarking this page and sharing it with my friends. :) I am definitely bookmarking this page and sharing it with my friends.

:)

]]> By: Jaseem Khan http://www.margolisadvisory.com/blog/2009/11/what-does-dubai-mean/comment-page-1/#comment-49 Jaseem Khan Fri, 11 Dec 2009 04:54:55 +0000 http://www.margolisadvisory.com/blog/?p=89#comment-49 Definitely the author provide a great insight into the prevailing situation in the Arab land of opportunities. Indeed the tremendous scale of real estate construction was largely induced by cheap debt and more importantly, Greed. In fact there was another area on which the real estate market was depending on, and that was tourism. As long as the two were booming, situation was great. But as the global crisis increased its intensity worldwide, the tourists numbers were also shrinking and so was the demand for the real estate. Also the number of people who used to came to gulf for employment was also on the downside. And today we are seeing its impact that will last for at least SOME time. Definitely the author provide a great insight into the prevailing situation in the Arab land of opportunities. Indeed the tremendous scale of real estate construction was largely induced by cheap debt and more importantly, Greed.

In fact there was another area on which the real estate market was depending on, and that was tourism. As long as the two were booming, situation was great. But as the global crisis increased its intensity worldwide, the tourists numbers were also shrinking and so was the demand for the real estate. Also the number of people who used to came to gulf for employment was also on the downside. And today we are seeing its impact that will last for at least SOME time.

]]> By: Jeff Margolis http://www.margolisadvisory.com/blog/2009/11/what-does-dubai-mean/comment-page-1/#comment-44 Jeff Margolis Thu, 03 Dec 2009 14:50:11 +0000 http://www.margolisadvisory.com/blog/?p=89#comment-44 You definitely have more experience than I in this specific area, but your comments are logical. This will not be a one time event. You definitely have more experience than I in this specific area, but your comments are logical. This will not be a one time event.

]]> By: Lynn Kennedy http://www.margolisadvisory.com/blog/2009/11/what-does-dubai-mean/comment-page-1/#comment-42 Lynn Kennedy Wed, 02 Dec 2009 20:41:25 +0000 http://www.margolisadvisory.com/blog/?p=89#comment-42 I am quite sure that the news from Dubai was a "controlled event". I was in Dubai last year when the market "crashed" and as a veteran of the real estate business, it came as no surprise to me that the development activity there was not based on reality, nor was there a disciplined approach to any aspect of the development process. A city created with sections with the density of NYC in five years is not a sustainable financial environment -- with no land use controls to speak of, no land registry system and presumably no enforceable way to register debt. Real estate in the long term will only work if there is discipline attached to the process of investing - reasonable debt loads, structuring of expiries, strong Landlord control of tenant covenants, development only when there is immediate demand etc. This discipline was not in evidence in Dubai. Asset managers need to be strongly independent even in times of "irrational exuberance" and not seduced by "cheap debt" and "hot markets". My experience tells me that there will be more announcements of this type over the winter months and throughout 2010. I am quite sure that the news from Dubai was a “controlled event”. I was in Dubai last year when the market “crashed” and as a veteran of the real estate business, it came as no surprise to me that the development activity there was not based on reality, nor was there a disciplined approach to any aspect of the development process.
A city created with sections with the density of NYC in five years is not a sustainable financial environment — with no land use controls to speak of, no land registry system and presumably no enforceable way to register debt.
Real estate in the long term will only work if there is discipline attached to the process of investing – reasonable debt loads, structuring of expiries, strong Landlord control of tenant covenants, development only when there is immediate demand etc. This discipline was not in evidence in Dubai.
Asset managers need to be strongly independent even in times of “irrational exuberance” and not seduced by “cheap
debt” and “hot markets”.
My experience tells me that there will be more announcements of this type over the winter months and throughout 2010.

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