I agree its been exagerated abit. I dont see that amount being handed over in 2009. However, I still believe there will be an over supply. Most of the buyers are speculators, there arent enough end-users in the market.
Alot of buyers buy whole floors too,... so imagine if the price of a one bed is goin for 1.5 M ..to get an 8% return, you should look at 120,000 per annum.... I dont know if there are many people who would be prepared to pay that much... and for so many 1 bed units which will hit the market in the next few years.
The only people who can afford that are well paid european expats, and how many of those exist in the market? I am guessin about 80% of the population earn below 10k a month? Maybe more than 80%.... and cost of living is rising... so that 10K will come down by quite alot.
I dunno anyway, I get a headache tryin to figure out how people will fill these apartments. Then again, who am i to give this analysis, i bought an apartment in Al Reem Island for 2M.... I know its meant to be super luxury... but then again so are all Al Reem Island units. Who will fill all those 1.5-2M 1 bed units.
Maybe by completion in 2010/2011... people can afford to live in them. MAYBE!!
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