Quote:
Originally Posted by flick0069
For someone looking to invest at this time, how would you compare these two markets? Which has better opportunities for capital appreciation? Have Abud Dhabi prices risen as fast as Dubai?
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Capital appreciation at this stage would be Abudhabi. I was hoping that their prices would start off like Dubai, but they started where Dubai ended should say.
A 1 BDR with a good developer costed about 1.7 million dirhams. The bait of course was 70% on completion. If you try to work the numbers you would end up paying a monthly EMI of around 12000 per month for 70% leverage for a 15 year period and an interest of 8.5%. If you require a decent positive cash flow of Dhs 3000 per month, you would require to charge a rent of Dhs 15,000 per month which works to Dhs 180,000 per year.
How many would like to stay ina 1 bedroom paying Dhs 180,000 rent. The numbers don't match.
Unlike Dubai Abudhabi would be more of an equity market then a rental one. Pay 30% and towards or on completion sell off for a profit and walk away.
This is my opinion and I could be wrong, but that's how I see Abudhabi.
Regards
Roshan