Has Dubai Property Bottomed out and will it go up again this is a question which is being asked these days. Due to number of reasons I am no interested in Buying the Dubai Property but just to share with Forum and get better insight I am posting Following Observation.
In Dubai Discovery Gardens, Studio Apartments were Floated during 2005 in 340,000 to 330,000 UAE Dirhams. The Price slowly went up to almost Double Level. In July 2008 One of My friend Bought the Flat in 720,000 when they were almost ready. Unfortunately Market crashed after that in March 2009 he Sold the same Flat in 450,000 but price sliding continued till today people are ready to sell in about 350,000.
At present Rent of these Flats are about 35 to 37K per years, But this is not end Nakheel who is primary developer is asking about 15000 Dhs per year the cost of AC and Building maintenance [for Just a studio Flat]. These maintenance etc cost was over looked by investors at time of Purchase. And initial projected rent was 60 to 75 K during 2007. which has very well dropped to less than 1/2 and still not bottomed yet as more supply is on the way. Now if someone buy at this price which looks feasible. Still it is not profitable. You invest some 370K and get return only 5%, There is no guarantee that how long these Buildings will stay? will maintenance be further increased? will you get same rent or even lower rent. As typically such flats were having about 25000 Rent in 2000. If rents will drop to that level what investors will get after paying 15000 to Nakheel as maintenance. 
