During the boom years I watched with amazement at the way the prices and the towers in Dubai just kept going up.Where was the demand? Who was going to live there once the builders had left?
It appears that even the rich, famous and footballers are no longer taken by a patch of sand in the desert. Prices in the world palm development have fallen by 70% since their peak in 2007.
This just highlights the fundamentals of property investing. It's all about demand and supply.
The good thing about UK residential investment is that because of our restrictive planning system and now becalmed development sector; new housing supply is severely restricted. The likelihood that long term house price growth of 2.4% above inflation will continue some time in 2012. Rents continue to rise and whats more tenants expect them to rise too.
These are all factors that highlight that the fundamentals of the UK investment market are very different to Dubai. A landlord investing in the UK is therefore making a sound investment even if this time don't expect to be a property millionaire over night. Those days my friend have gone for a very long time.
Landlord insurance quote - the market place
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