Your statistics are out - 10 million to 60 million. It doesn't help a rational argument if you make things up.

Likewise you can't expect a permanent 10% rental return. Basic economics means that as prices rise, rental yields fall. You don't expect to get a 10% yield on future prices.

Apologies for the making up but i wasn't. I thought these were the figures on top of my head as i read it somewhere but can't remember where ! Apologies for that.

And you are right about the 10% yield, hence the future fall in prices? Supply outstripping demand?

With regards to who will fill up these properties.In the short term,from now - 2010/11,
I think there will be a steady flow of people moving to Dubai,maybe not enough to fill the units so there will be a price correction.
Then from 2015
onwards,once the metro and many of the amazing projects are finished and many almost finished,Dubai will be an amazing place and people will flock there.This will push the prices back up.
So basically if u buy now then take it as a long term investment.

Its not about people who will fill them in. Its about people who will afford (the price or rent) to fill them in.

Since people are flippin left right centre, the end product will end up with an unbelievable price. For example, many 1 bed apartments in Abu Dhabi were launched at 2M. What will their value be in 2010 when finished? or 2009.... 4 Million? 3.5M?? ....And the rent? Ok lets forget the rent because we said the end user will be someone who will live in it..... will this person be able to buy it for that amount? How many people can afford over priced properties due to the flipping and investment greed goin on!!!...

So you buy and sell while you can.... but when I said who will fill them in... I didnt mean that there will be a lack of number.... but a lack of people who can afford the price and the rent.

Inv.

Dubai is a city, which will either continue to grow, or will fail.
Sounds simplistic, but with this city, I think its pretty black and white,
either the "toast of the town" or ...toast
If it fails, the property values are done, if it grows, (and they are trying their best, and the rest of the world believe it so far) the population will grow, and properties will level out to comparable cities.
if you're already paying more than a comparable city, well..don't.
The main question, what will be comparable?

sayedat
Ajman will have to spend billions in power generation and infrastructure.they are blindly following dubai which is a very dangerous sign. Even today there are hundreads of buidings ready in Ajman industrial area which is more closer to dubai on the emirates road without power and water.Also, there are only 2 roads (main) leading from dubai to ajman and one is always blocked since its passing from inside sharjah,second is emirates road which is blocked during peak hours.becos neither shrajah nor ajman is doing anything on widening that road whereas dubai part is widened to 6 lanes from 3 lanes previousely.
In short,Ajman is in more danger than dubai.

If people can afford to rent in London and New York to name a couple of cities then Dubai should be no different.

The power has been promised and i believe will be delivered to all Emirates Rd projects.... because The Government of Ajman is the master developer there So when power arrives you can bet it will arrive to those projects first.

Secondly, Ajman's market is more stable than the other markets...whereby prices rise on a gradual level... these concerns of power and infrastructure has had its positive effect on the market.... it removed speculation....so prices rise slowly as investors are more wary.... I find this to be a good thing actually.

I dont want Ajman to turn into Al Reem Island where prices rise like crazy and people buy and sell properties like bread.

Also, once finance becomes available in Ajman, you will see a serious rise in prices because that will encourage more investors to enter this market.

My main concern with Ajman is those projects will put alot of pressure on Emirates Rd... especially around National Paints Roundabout.... we need to see Emirates Rd widened all the way to Ajman and beyond.

The fact that Ajman opened its doors for freehold development is already a great sign. And the developers there (although not well known) but atleast they respond to your calls and treat their investors seriously and with respect. This is something important, customer care is very important to investors these days. Cos you go and buy with a big developer, then you get treated like crap, your calls ignored etc.... wats the point? That will affect developments in the long run.

In my opinion, if they cant take their clients seriously, then they will not take their projects seriously, end of story.

Inv.

Well we will see
Nakheel are ready to flood the market with 25000 flats in the middle of the summer
The name of the project is discovery gardens.
It’s obvious that to fill the above development will take more than a year
People will be dispread to rent out the units and will drop prices.
And if the rents go down the property value will follow.
I really don’t know what nakheel are aiming by delivering such a huge project at once, but if they do - a lots of people will suffer

Investoman_uae, I will beg to differ to most of your comments. Simply because the property market in Dubai has not fully matured. Most properties are being bought by a large proportion of cash. People like you and me putting down 30% - 50% or in ordered cases putting down the whole 100% in stages in parallel with construction and thru to completion. The success (or longevity) of the property market will be aided by availability of mortgages for the young Dubai indegenes who at some point will also want to get on the property ladder. It will mimick what happened in the UK, where many young adults just thought it a waste of money to be renting and with the availability of Mortgages many went to buying route. Also the UAE region as a whole will continue to have expats working in the region and they will continue to be able to afford renting, so as long as the government provides the necessary infrastructure Water, Power, Transportation, then I am sorry I dont see the problem you see.