The residential and commercial real estate boom in the oil-states of the Persian Gulf will come to a sudden stop at the turn of the year 2008/2009 when the effects of US recessflation, European stagflation and Asian economic slowdown combine.
In this matter we should keep in mind that the dithyrambic leaflets and articles on the Dubai’s real estate and the like were written by those very companies, media and experts who praised the American real estate opportunities two years ago, and the UK or Spanish ones a year ago. The market upon which petro-monarchies expect to make their colossal construction investments profitable only exists in the minds of their developers, bankers and all those who believe in them.
It is nothing but a desert mirage.
Indeed, at the time of Internet and A380s, Asians and Europeans need no intermediaries to make business. These “booms” only exist because there is a need today to make the best possible use of those mountains of US dollars losing value every day and nowadays impossible to invest in the US.
These investments will not be profitable and these regions will be full of incredible ghost-cities within a decade. If, in addition to this, the United States and Israel decide to attack Iran in the coming months, ongoing construction work will not even be completed.
geap
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