Dubai Elmat's first Report: As you know the whole place is a construction site. But I think there's a trick:
Even though the buildings are springing up like mushrooms, thet rent is very high. All payments yearly in advance:
USD2.700 monthly for tiny furnished 1BR apt. Long term is USD2027 monthly.
3BR Villa is USD2700 unfurnished /year.
Hotels are also very expensive. Some people here told me the buildings go up and then are left empty.
I believe there's -something only TJ could possibly have devised- cooking behind that.
People said to me: Real state developers are holding empty properties. As a result rent gets high and higher. People arriving here, calculate that is better to buy rather than rent since, for sale, there are lots of properties on the market.
This people who are buying, do so in the belief that once they move over to other places or back to their country of origin, they woould rent or sell property very easy, since they know how hard was for them to try find a property when they came here.
I'm not very sure how those schemes work, but everything comes to an end.
I'm thinking here the property boom is feeding on itself: There's need for a lot of expats to build buildings and offices. To expand public utilities to power, provide pother sewage. Build new roads infrastructure. Power plants. (Just for your info: A new USD3.7bn subway is about to start construction. A new 3G wireless network just starting implementation. Sports facilities, amusements parks, new airport)
Once everything that needs to be constructed is up and running, the real state masters, having made a killing, download the property in the market and move on. Everyone who had a property soon see that prices plummet.
To sweet the deal, cars are dirty cheap and gasoline is USD1/gallon. All kinds of goodies are tax free and malls are being constructed com gusto.
I asked a taxi driver: But how about this lots of people we see around here? He says: Lots working. Most tourists in shopping sprees. Permanent residents only some Americans and Europeans.
Have to add something:
Most of the people that live on those properties are young couples. Thirty something with little kids. I guess those unexperienced are the ones that are going to be fleeced.
They came and see the possibility of having a suburban life, with big SUV and one day they can cash in on the savings piled up in the housing estate they've bought.
Which is tempting (for the unexperienced. They see: good life here and on top of that sell your savings -your property- and get money to come back home and buy there??
Sounds like a can't miss opportunity.
Villas to let:
gulfnews.com
Villas for sale:
gulfnews.com |
