6 months to rationality
- cost of development today on almost any property= 600-700 AED/sft
- price per sft= 1200-3000 AED/ sft
Gross margin= 50%- 75%
Any competent, liquid market converges to points of close to zero economic profits/ the divergence shows the bubble.
The last time gate tower’s 1 BHK apartments costed 1.5 mn AED was in 2008- took about 18 years to get back to the same price point
The 50,000 properties a year, 200,000 immigrants a year argument is weak to say the least.
Prices should come down by a ton in the next 6 months as oil retains 100$+ until the end of the year.
Whatever deals you’re getting today aren’t distress. Will await rationality
u/WasingTheWasofWhat — 7 days ago