Dubai/Abu Dhabi rent
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Join Date: Apr 2010
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Dubai/Abu Dhabi rent
Someone explain this to me...
On Dubizzle, I see 35,000+ vacant apartments for lease in Dubai... roughly the same amount I saw back in 2010 after market corrected itself from the pre-crash insanities... yet the asking prices are 30-40% higher. Based on what?! Can we say 'bubble' despite of what the local "experts" say?
I don't know about others, but this is quickly becoming not worth sticking around for. If my choices are to earn less back home, but have the same or greater purchasing power than I do here, then why on earth would I want to stick around in this "paradise?"
Dubai is quickly becoming a case of bad math.
On Dubizzle, I see 35,000+ vacant apartments for lease in Dubai... roughly the same amount I saw back in 2010 after market corrected itself from the pre-crash insanities... yet the asking prices are 30-40% higher. Based on what?! Can we say 'bubble' despite of what the local "experts" say?
I don't know about others, but this is quickly becoming not worth sticking around for. If my choices are to earn less back home, but have the same or greater purchasing power than I do here, then why on earth would I want to stick around in this "paradise?"
Dubai is quickly becoming a case of bad math.
Join Date: Jan 2014
Location: Dubai, UAE
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Having been in the market for some time already, it's quite obvious that this time the prices are stabilising. One of the main reasons for that (if not the most important) is the amount of newly built properties coming to the market. Dubai's real estate market is becoming a more standard one and I believe that prices will stay in the region where they are now, with the usual ups and downs. I don't think this is a bubble again, if it is, maybe a very small one. Rent prices are supporting the purchasing prices and the market is relatively balanced (for what Dubai has been in the past).
What worries me more is the inexistent salary correction for the last 2 years versus the huge increase in consumer prices. Now we pay for a coffee between 30%-50% more. Same happens with many of the groceries.
In summary, I have to agree with you, and as I described in another thread a few weeks ago the reasons to come to Dubai (and in particular EK) are not there anymore:
- Quick upgrade - NOT
- Saving money - NOT
- Lifestyle and weather - NOT unless you come from the UK
So yeah, I also rather earn less but have a better purchasing power and live in a civilised 1st world country (with pros and cons such as taxes). And because of that I am doing arrangements to go back in the medium term since this is not gonna get better, it can only get worse. And I believe that if I wait too long it is going to be too late.
What worries me more is the inexistent salary correction for the last 2 years versus the huge increase in consumer prices. Now we pay for a coffee between 30%-50% more. Same happens with many of the groceries.
In summary, I have to agree with you, and as I described in another thread a few weeks ago the reasons to come to Dubai (and in particular EK) are not there anymore:
- Quick upgrade - NOT
- Saving money - NOT
- Lifestyle and weather - NOT unless you come from the UK
So yeah, I also rather earn less but have a better purchasing power and live in a civilised 1st world country (with pros and cons such as taxes). And because of that I am doing arrangements to go back in the medium term since this is not gonna get better, it can only get worse. And I believe that if I wait too long it is going to be too late.
Join Date: Jul 2009
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On Dubizzle, I see 35,000+ vacant apartments for lease in Dubai...
Second. Go to the Marina or JLT or Downtown Dubai at night and look at the buildings. Count the unlit apartment windows and compare that with a mature market like SIN, HKG, LHR or, dare I say it, NYC... You'll realise that lots of apartments are still empty; held off the market to create a "shortage" that was never there and never will be.
You'll also realise that the upper third of Burj Dubai hasn't even been finished, the construction lights are still in there and have been for a few years. Some say it will never be, as it is simply to expensive to support dwellings that high (Google Vanity Height).
Third. Building cost in Dubai is so dirt cheap that there is never going to be a reason for a "shortage" (i.e. high real estate prices) as space is a plenty and if you need more, you just build more.
Fourth. Not really, just announce, take the money and then cancel; ask investors in Palm Jebel Ali, Palm Deira, Dubai Waterfront, The Universe, Arabian Canal, Lagoon, Dubai Land etc. etc. Legal recourse is zero.
