The developer prices are so high that is time for correction
Properties at JBR, Dubai marina and few others are very difficult to rent out.
Having in mind that more than half of the people buying properties in Dubai are investors or speculators the market can collapse in a few weeks.
If the above people don’t make any more money from resale they will look for something else.
What is going to happen is the properties with a good rental return will do well and the overvalued properties will drop price.
A 7% net from rent per year is a minimum the investors are looking for.
And more and more properties are falling bellow the above percentage.
For example
One bedroom in JBR is about 1.8 mil. The rent is 110000DHS (reasonable rent) less 20000 DHS service charges, taxes, maintenance and whatever, you net 90000DHS. That’s 5%
Having said that the realistic price should be 1,300000 DHS – Watch out.
Ok a lots of people are speculating and keep the flats empty but for how long.
The reality is on the way and don’t buy if your net profit is less than 7%