Did you all catch the Dubai segment on Sixty Minutes a few weeks ago? Quite amazing, it is hard to believe all the incredible wealth. Can you imagine your commission checks....Once a sleepy fishing village, the city has been transformed into a neon sweep of skyscrapers and absurdly luxurious hotels, an architect's playground in which new billion-dollar projects rise out of the desert.
Check this out the powerpoint... click here. If you are going to rent a flat in Dubai, the landlord expects a whole years worth of rent. So that shoots the majority of Americans who live paycheck to paycheck right out of the water. But, hey there's no taxes and no taxes on your personal income! As you might have guessed the services are really cheap there. This is a place only for the very, very rich!! The city already has an airport that will be capable of handling 70 million passengers a year by 2010. Quite astonishing, the reports state that over 30,000 people arrive each month.
Here's some startling factoids:
The world's tallest building, Burj Dubai.The world's largest retail shopping project, when it's finished, Dubai Mall.
The world's tallest hotel, Burj Al Arab.
The world's largest man-made island, Palm Jumeirah.
The world's largest man-made marina, Dubai Marina.
Okay, what is the downside...well they don't have to worry about getting their concept plans approved. While I was in Kuwait last month, I read how you settle on the property that appeals to you most or comes closest to your specifications. You sign the contract then arrange finances, or vice versa. From there on it is step back and watch. (Sidebar comment: My sister and brother in law who is a Kuwaitian bought a flat in Dubai, and I really can't wait for the invitation). You can read about my visit to Kuwait at: http://www.qachousingmarket.com/2007/09/kuwait-different-world.html
Here's the real kick in the butt:You have no input in decisions on size, layout or design, much less on materials, contractors, etc. Nor were you allowed any input or permitted to make modifications in the contract. It is a completely take-it-or-leave-it proposition.
Builders and developers have flocked to Dubai the last five years. Dubai now has some $200 billion in building projects, and needs more and more cranes to complete its projects. However, manufacturers can't make cranes fast enough and the second-hand market has been largely cleaned out. Last month there was a major strike by thousand of foreign workers (about 700,000 Asians work there) who were complaining of low pay and low living standards
One thing that is in my thought process backwards here is the Emiratis believe that if they build infrastructure now, demand will flow to the region to make use of it. This is the reverse of thinking in the developed world, where cautious investors usually sanction supply growth only when there is proven demand.
Well, how many of you think this great dreamland has a future to work?
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Camille- There is a down side to Dubai. It is not environmentally friendly and it is yet to be seen how this results in one's health. I won't trade my health for any amount of money. I think it is overkill. Katerina
Dear Tom: it was an interesting show....the powerpoint is very amusing, especially the mountains where you could go skiing inside the hotel. So much of this money is old money coming from Arab families. Then again the government protects the wealthy there and they always benefit. There is no middle class.
Dear Katerina, I too am skeptical about the way they are building Dubai. I just can't imagine that it is not going to go under with a natural disaster. Well, i believe it is in God's hands.