RERA recommended rental prices in Dubai... In google maps!

[samsaf]

The latest average recommended rental price for residential property in Dubai, as laid out in the Real Estate Regulatory Authority index which was published in January 2009.

Google Maps

Published in googlemaps

Now, it looks impressive technically, but what do you think of the prices? It is as per RERA's recommendations? Is it realistic? Or is it to protect the rent rates?

Give your comments!

 

[financier888]

The latest average recommended rental price for residential property in Dubai, as laid out in the Real Estate Regulatory Authority index which was published in January 2009.

Google Maps

Published in googlemaps

Now, it looks impressive technically, but what do you think of the prices? It is as per RERA's recommendations? Is it realistic? Or is it to protect the rent rates?

Give your comments!

Wait till May / June and see for yourself when the supply will greatly exceed the demand - the proposed prices HAVE to drop or the units will sit vacant. In many areas they are already dropping by 30% from last year and we;ll still in January. Many investors are sitting with multiple units empty expecting to sell them by March - which they probably wont. Then reality will set in... Supply and demand govern the market prices irrespective of the proposed projections. It's a 'guideline' but if you're sitting for months with a vacant unit and you want to get some income coming in - you'll make a deal. The supply and demand sets the market price. Many of the higher wage earners have left or are leaving. Tens of thousand more are already planning to leave when the school term ends - so i ask you, who will be here to pay these higher end rents? Many businesses are contracting - including the firms that may have been considering setting-up in Dubai and many large projects in progress have already been scaled back..

Until the global economy starts to recover - dont expect to see any changes other than drops is sales prices and drops in rent. Same in most markets worldwide. Dubai is no different and the prices as proposed are still quite high. time will tell