Developers falling by the wayside is a good thing for Dubai in the long run.Unfortunate for those who have given them money.There are too many shady and unprofessional developers and too many developments going on and threatning an oversupply.
Late starts on projects and rising material and labour costs all add to the delay of the price correction caused by oversupply that most are predicting for 2011/2012.
Personally I would like to see the Dubai goverment put a stop to all new launches as from now.
For all those who brought at least 6months to 1 year ago for projects that have been started,rising costs are a good thing.Prices per Sq Ft for new launches will have to be higher to allow for extra costs thus dragging up the prices of existing projects.
I didnt listen to the doom merchants a year ago when I brought a 1 bed,and now completed its worth around 60% more.
I read alot about all the people who are supposedly moving to dubai yet I don't see any official figures .The chronic shortage of office space is slowing down the influx of workers
which again will add to the threat of oversupply.
|