I'm sure Saidia can justify the rental numbers you discussed. The challenge with Saidia for the first number of years will be occupancy rates. There are a large number of rooms (hotels, appartments and villas) coming available at one time, however tourism is a new area will take years to match supply.
My experience has shown that this often creates a rental price war. This is a double edged sword.
+ It will make Saidia more attractive (cheaper) to tourists and expedite increased occupancy rates.
- It drops expected rentals which may will likely result in negative cash flow driving a number of investors to dump their "losing" investment prematurely, putting downward pressure on selling prices.
All of this will work itself out in the long run, and I'm convinced Saidia will become a greatly desired world class resort in the long run, which is why I have invested, but the question in this unstable global economy is, how long is the LONG RUN??
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