Kennytheking,
I am very open to differing opinions, however, when facts are so clearly skewed in the opposite direction, I would tend to call them insanity.
As for facts regarding GDP, I have included a few links stating as such. You may refute these, not lending credibility to the sources, however, where freedom of the press is considered, obviously one has to seek information from external sources. I would tend to view these with an open mind, knowing full well that these lead to bias as well, but better than mindless glowing reports of economic growth in the region that are drawing on old information (before the crisis hit).
GDP Article
http://www.bloomberg.com/apps/news?pid=20601110&sid=a4sAgqSD_LIA
GDP and Tightening of Sovereign Wealth Funds
http://www.nytimes.com/2008/10/14/business/worldbusiness/14wealth.html?scp=89&sq=Dubai&st=nyt
Dubai Bankers anxiety
http://www.nytimes.com/2008/10/24/business/24views.html?_r=1&scp=45&sq=Dubai&st=nyt&oref=slogin
Also, the facts are becoming clear with the regular man on the street....you don't have to look much beyond colleagues and friends and what they are starting to experience to realize that the tide is shifting and investing in property is, perhaps, not the prudent move at this point.
A few examples...
- real estate agents formerly working on a salary+commission package have now been told they are working on commission only
- Nakheel has recently 'made redundant' at least half of their environment team (incredibly there was one)
- Construction is grinding to a halt. Tons of reinforcing steel rebar is sitting unclaimed at Jebel Ali and Rashid Ports
- Construction related equipment rental firms, formerly struggling to keep up with demand, now have warehouses full of unused equipment
- A major luxury car manufacturer is shutting down Dubai operations to relocate to Turkey (cannot afford to keep staff in place in Dubai)
- Some legal firms in Dubai are super busy recruiting, in what area of law....solvency!
As for being offered 85% financing, watch yourself. This can easily be changed midstream to suit the bank once you're so far into the process that you cannot get your deposit back from the developer and are now on the hook or stand to lose your outlay. Yes, this is happening.
Eventually, and sooner rather than later, the property market has to adjust....the fundamentals just aren't adding up.