Dubai Condo Market vs. Miami Condo Market
By Anthony Longo 15 03 2007
Why Dubai condos are not like Miami and will avoid a real crisis.
The overbuilding of Miami condominium buildings is worrying realtors. They point to 10,000 completions this year and 10,000 next year, while only 11,000 units were absorbed by the market in the previous decade. Importantly the developers are highly leveraged and so are the off plan buyers of many of these units.
At a superficial level there is a comparison with Dubai. One private building materials group has its own estimate that suggests 50,000 units will be completed this year and 50,000 next year, with around half of these units bought by wealthy people as second homes, usually without finance.The annual take-up of apartments in Dubai is a matter for some debate among analysts. But estimates range from 10-30,000 apartments. Thus the most optimistic analysts see this bulge in completions being very quickly absorbed, and the more pessimistic see a couple of years of oversupply.
Pessimists are more concerned about the leveraging of off plan units, although the figures from Dubai mortgage providers suggest that no more than 15,000 off plan apartments have been bought using finance, and that means that 85 per cent are bought with cash. Continued…
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i personally believe that some condos shouold really be built in miami instead of dubi because of the fact that i think evryone deserve a nice place to liver. in real estate, its not ony about the architecture but mopstly the property valu village. so then afterwards if there gret buildings around the world then evryone zhalll havea succefull life nd career nd be kindly poliely living there.