I guess it all boils down to the fact that start-ups are never sure of how things are going to work out. It would have been impossible for them to commit to specifics in some issues. If you have a good job then the risk might be too great. Start-ups are always a risk.

In October the housing market was just starting to crater. Rents had just peaked. I find that real estate agents themselves really have no clue as to how prices will behave. They are generally uneducated Europeans who have the gift of gab, but no concept of supply and demand fundamentals. Wish you would have asked me as all of my predictions are coming true. This is what I wrote on another site:

An update in regards to what the housing allowance will get you. Let's set aside 24,000 dirhams for utilities, which leaves us with 168,000 for rent. The municipality has a 5% tax on rent so let's call it 160,000.

In today's paper 160,000 will get you this:

The Greens - 3 bedroom, 1600 sq.ft. AED 160,000
Dubai Marina - 3 bedroom Sea View 1775 sq.ft. AED 145,000
Downtown Burj Dubai - 2 bedroom, 1572 sq.ft. AED 165,000
Arabian Ranches - Palmera Townhome 2 bed + study, 2219 sq.ft. AED 160,000
Arabian Ranches - Townhome 3 bed + study, AED 170,000
Uptown Mirdif - 2 bedroom, 1462 sq.ft. AED 120,000
Springs - Townhome 3 bedroom, 2246 sq.ft. AED 170,000


These are advertised prices and can often be negotiated down by at least 10%, probably 20% in many cases.

I didn't see any listed, but the new Nakheel Villas in Jumeirah Village are well under AED 160,000 on a rental basis. They are 2 and 3 bed villas, but the square footage is massive for the number of bedrooms.

So it's now quite within the realm of possbility to get a 3 bedroom townhome in a nice location for the allowance. Prices are heading nowhere but down over the next year so the allowance is more than adequate for reasonable housing.



Typhoonpilot