Thursday, January 26, 2006

Boom town in the sandlands.

"Over the past two years, as high-rise fever spread across town, prices for the luxury apartments ballooned...

Buyers, mostly interested in flipping them for quick profits, eagerly anted up five-figure down payments...

But the intense competition for the city's limited supply of contractors sent construction costs skyrocketing 30% last year, just as lending policies tightened, interest rates climbed and sales started to slow.

...experts say the abrupt reversal of fortune in the desert, where the mainstream residential real estate and hotel markets are still quite healthy, shows just how quickly the odds can change in even the most affluent markets if runaway speculation and overzealous development take hold.

No, not Dubai - Vegas. Still, food for thought.

(hat tip - Emirates Economist)


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