Dubai/abu dhabi - bubble burst

[financier888]

Well it appears banks have increased Salary limit for Expats by 200% when it comes to loans. Also, there's suddenly a huge amount of properties going for rent, and rent prices haven't increased at all. Any predictions or speculations?

200% for ALL salaries? or in the lower brackets - whereupon if you were making a15,000 they want now 30,000 etc... The banks need to eliminate the high loan to value rations and hedge against deprecaiating market prices...

In regard to your statements on 'rent prices haven't increased' - did you mean - 'rent prices havent decreased' ? some rents are dropping as reprorted in the papers - like in IC and Discovery Gardens etc... However, owners are still holding multiple units and keeping them vacant thinking (and hoping) they will sell them in the next few months... Once the realization sets in, that this is not going to change that quickly - they'll either have to lower their selling price or if they chose to wait and realize it will take a year or two - rent.. Expect in April / May the influx of more rental stock, less renters - then you'll start to see significant drops in the rental prices.... IN THE PAPERS!! Already some owners are trying to rent are being told by brokers - 'sorry, no prospects...' - However, if they drop the prices - they may see them snapped-up.. In addition, you are going to start to see more offers from developers - "rent to buy' - then, renters will be converted into 'end-user' buyers.... Several developers are already already examining this possibility and I am sure you'll see it in the months to come... time will tell

regards -

 

[loai]

i doubt it, i also heard that Abu Dhabi is buying Nakheel.... thats interesting if this happens