Background
If an Arab doesn't get the price he feels he should get, then he won't sell not matter what the market is like!
So In Dubai there are 100's of thousands of apartments and villas empty because they want to keep the market up.
Basic economic suggests that there is a supply and demand effect to anything.
People have left Dubai and although visitors are up these are only holkiday people.
These people don't count on 2 points (1) they are not in Dubai to work (2) arabs don't believe in holiday lets.
More Background
In UAE the of a local is that the government builds a block of homes or offices and allocates it to a local. During the lifetime of the building the local pays the government a rent until the set fee for building is paid off.
Before this time part of the rent goes into the locals pocket. After the amount is paid back then all of the rent goes to the local, hence their pension.
Back to Dubai
So a law was passed that the allocated owners of the buildings of the new developments must ntake over the management and the maintenance.
Hence the current problem!
Many buildings with noi tenants because the woner didn't get their amount of rent.
Current tenance has to be taken over by the local, but they are already in debt as they have been paying some back.
So where is the money going to come from.
SO I gues one of 3 things can happen
(1) the Government lets them off the debt
(2) Rents must be halved
(3) Nothing and the buildings start to rot and crumble
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