Right now we see demand being more than supply. I was wondering what it would be the other way round " supply being more than demand "

Would rentals fall for studio fall from 65 K in some places to 35 K.

Would rentals on commercials fall from the current Dhs 250 psf to 125 psf.

When the markets flood with excessive supply, there are tendencies to undercut and rent out. It could be a turning point to the current scenario we are facing.

Will this happen ???.

Regards

Roshan

At the moment the likes of downtown burj can sell a 2 bed apartment for over 4m aed and the marina similar.

When there is real choice in the market then kiss goodbye to that and the 220k rents for a measly 800 sq feet.

In 3 to 5 years there will be better buildings, with better malls and better hotels, bars etc down the emirates road (Dubailand generally).

People have no choice at the moment - the dubai story.

I saw a JBR 2 bed apartment going for well over a million us dollars.

I also saw a brand new 4000 sq foot superb detached 6 bedroom colonial style house with its own pool and hot tub and 3 car garage for 700,000 us dollars 15 minutes from walt disney world in florida.

As JBR is probably one of the worst finished and build developments in the marina with potentially horrendous maintenance charges 5 years down the line as the render crumbles to dust i know where my money would go.

If supply is more than demand than what would Dubai be ??

The question is it going to be and when?

With few buildings coming up here and there 2009 will not change the scenario
2010 could be the same

I don’t really know when the demand will be less than the supply

It’s more likely that the 65k studio become 90k studio

I agree with the Emirates road part. I feel the commercial district would shift away from the once popular Sh. Zayed road towards Emirates road. With all the developments coming that side and with all the concentration of Remraam / Motorcity/ DSO / Arabian ranches....people would find it easy to travel to that side of town then to Sh. Zayed road. Phase 2 of Business Bay would hold better value I feel...Just a guess

6 BDR in Florida going for 700,000 USD. Florida is considered to be a hot spot if I got it right.

Dubai construction has to improve I guess.

2 BDR going for a million USD. People ought to be crazy to buy.

Regards

Roshan

At the moment everybody is buying in Dubai that’s why prices are going up and up.
Half of the people they don’t know what they buy just look at the returns and buy.
Florida is ten times better than Dubai and maybe 5 times cheaper.
But how much is your return in Florida and how much is in Dubai.
And how big is Florida and how big is Dubai.
Let’s see what is going to happen next year – maybe I will sell my one bedroom and go to live in a nice house in Florida or maybe I lose everything and rent a one bedroom flat in Florida and start again.
Or maybe I stay in Dubai and keep on chatting with nice people like you

Rent for studio will come down to 50k which might be attractive for people staying far like sharjah and ajman for 30k. Still that will be good enough, isnt it ?