Hi

We are currently living in Dubai and are seeing massive construction and wonder what will happen to the market.

We pay an absolute fortune in rent and it has just gone up despite the rent cap that has been introduced. Basically our landlord said pay the increase or he plans to sell the apartment ( basically pay or move out ).

We have seriously considered purchasing and if you need finance this is the local mortgage broker we used. http://www.propertyfinancelink.com/ and they were very helpful. If you take a loan in another currency realise the risk is not only with the property but also with the exchange rates.

In the end we continued to rent for another year because everybody is so uncertain and we needed at 20% deposit for an apartment plus a heap of fees and in the end was just too much.

When you think of who will come here to live in all the development the list is endless. Alot of people from the sub continent because of good opportunities, people from other middle eastern places because of war. Baby boomers who want a second home to excape the winter and so on.

Friends of ours brought a villa in one of the first developments three years ago and the price is now 4 times the original. Will the market hold the value? Will prices continue some sort of increase? Will there be an over supply? IWho knows, only time will tell.

There is still an absolute lot of development to be done over the comming years. There are still alot of foriegn companies that are still choosing o go ahead with more development, showing their confidence.

I am of the opinion that good value can be found anywhere and its more about what you choose to invest in and not where that will propvide the return in the long run.