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International Sales
Openshore have customers in most countries of the World including USA, Canada, Europe, Australia, Middle East, Africa, India and South Asia. Our procedures allow customers to purchase securely, direct from developers without the need to visit the UAE.
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Buy Direct From
Developers
Openshore are unique. We do not sell you property but simply provide you with the best information and advice. We are not tied to any one developer but we work with all the major developers in the UAE.
Once you have selected a property, we introduce you to the developer and you get the developers direct (best) price and make all your payments direct to the developer. Your price is the same as if you had gone directly to the developer in Dubai yourself. You do not pay us anything. The developers pay us a small introduction fee per customer. You have the added bonus that should there be any issues, you have two groups of people that can help you - the developer and us at Openshore.
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RECENT NEWS ABOUT DUBAI |
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| What Happened |
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| On 26th November 2009, one of the Dubai companies (Dubai World, owners of Nakheel) said that it needs at least 6 months more to pay part of its debt (approx $9 billion) of a total debt which is about $60 billion. Most of this debt has arisen due to Nakheel, where customers have stopped paying the developer for off plan-properties (purchased in 2007/2008), as they fear that the values of their partly paid off-plan properties (which have not yet started construction) has gone down, or that these may never be built. Nakheel is still operating but has no surplus money to pay back loans, and many of the projects have been cancelled. Dubai World accounts for most of Dubai’s debt which is a total debt of around $80 billion. We, in the property business and many in the UAE have known about this for over 6 months and the obvious fact that eventually Nakheel would need to be re-structured. That is why over past 6 months, we have been only recommending purchase of ‘ready’ or ‘nearly ready’ properties and not ‘off-plan’ properties. |
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| Why was it Big News |
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| However, the formal release of this information was badly timed and done in amateur fashion. As Dubai World is a Government owned entity (although it is not the government), many have taken a possible default by Dubai World as a default by Dubai Government and by extension a default by the UAE, the country. Also the press has failed to make the distinction that Dubai is a state within the country of UAE and positioned this request for debt deferral by Dubai World as a sign that UAE and other countries could default on their debt leading to another worldwide financial crisis. |
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| Why is it not as bad as it looks in the News |
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Dubai is a state, part of the UAE just like California (another state having financial concerns) is part of the USA.
The UAE is the world’s third largest exporter of oil and one of the richest countries in the world with one of its surplus funds being over $700 billion. Most of this wealth lies in the state of Abu Dhabi which accounts for around 90% of UAE by land and over 98% by oil production. Many of the Dubai assets are already owned by sheikhs in Abu Dhabi. The country is UAE – not Dubai and UAE will not go bankrupt. The UK is more likely to go bankrupt than the UAE. The UAE central bank has already issued re-assurance and cash availability (if needed) to all banks operating in the UAE. |
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| Likely Net Effects |
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- The excitement will settle over next few weeks when people realize Dubai is not a country.
- Dubai World will be split up. Good companies will be sold/floated. Poor companies like Nakheel will be re-structured. Some creditors may indeed not get paid in full (like General Motors). Many creditors had already assumed this to be the case.
- Many of the assets in Dubai will eventually be owned by companies whose ownership lies in Abu Dhabi (rather than with the sheikhs of Dubai)
- Dubai will not become bankrupt (the source of funding and ownership of many Dubai owned companies may change).
- There may be cut backs on funding and lending to developers in the future (from all sources) – thus a reduction in future property construction. As Dubai economy is still growing, with net growth in population, even with the current recession in construction, this will result in property shortages – not excess. Our overall forecast is that property prices are at rock bottom (having fallen over 40% to 50% in most areas since October 2008) and will slowly increase over next 12 months.
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WHAT DOES IT MEAN FOR YOU |
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| Owners of Ready Properties or Nearly Ready Properties |
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| Keep your properties. Do not be panicked into selling at a distress price. Overall there are likely to be shortages of ready properties as many future planned projects will be cancelled or severely delayed. Sell at end of next year if you must sell. |
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| Off-Plan Owners – not started construction |
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| This means that your building is even less likely to start construction and is more likely to be cancelled. If it is cancelled, you may get some of your money back. Do not make any further payments unless you have a good construction linked payment plan and your building has definitely started construction – Get Pictures or visit the site yourself. |
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| Possibly Looking To Buy - New Buyers |
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- Only buy properties that are ready or are nearly ready. Do not buy off-plan properties even if discounted, as these are unlikely to start construction in the next few years.
- If you are considering a ready or ‘nearly ready’ property, then now is a good time to buy, at a good price, as we forecast a shortage of ready properties over the next few years.
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All the properties on our website are ready properties or ‘nearly ready’ properties that come with good payment plans.
Click here to get back to home page and recommended properties list. |
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