Originally Posted by
transport jock
We just moved villas. Last expat tenant paid 175k for the year and left because landlord didn’t want to drop the rent. We are now paying 25k less than that and moved in 2 weeks after they moved out... that’s a 15% drop in rent in 1 year..
Undoubtedly true - so many examples of this. However that is not directly related to the state of the economy. Post 2008 and post 2013 slumps, there was undoubtedly a shortage of decent affordable housing and the market was overblown, and now we have the response to those conditions coming online and there's a downward rental price as a result. However, in my opinion, this is unlike UK/US housing drops in that so much of the housing stock from 2008/2013 is owned outright, and if the landlord leaves it empty (like a muppet) then the economy doesn't actually suffer. There are undoubtedly a lot of people still under water from the 2008 off-plan buying boom, whose properties simply don't exist and most likely never will. But to equate a dropping price of housing market, aligned with stupid landlords, doesn't automatically mean the economy is in trouble.
One could easily argue that the UAE is gradually shedding its excesses, in terms of salaries, inefficient organisations and value for money issues - which means less people doing more work, but for the same output. And the new stock of housing (largely funded by mortgages, which need to be repaid) is starting to match up with the reality of what people are willing to pay while the older housing, dominated by fully owed/no mortgage properties is dominated by people who still think its 2007 and are willing to leave the property empty.