Very well presented Noble man...As usual the cynic in me wants to contribute..Specific to your point:
PART I: Categories:
"People in the Third Category .........from certain specific countries."
There is a fourth Category of people coming from within the first and third category ...People who have a compulsive obsession of coming to "Gulp"...This category of people are "inspired" by the regular TV features of "Success story" of their "compatriates"...Not coming here is an "inadequacy"..Its not about economic sense...If you notice both the articles are focused on "such people"..Living in the Gulf is a given..its not an option driven by comparative study of wages and oppurtunties...So much so that now other "states" are fulfilling the demand of manpower at that state at "higher" prices than that are available in the gulf....but as I said.....(For political correctness I have not got into specifics..So its possible you may not understand my contribution..)..
So indeed its a free world.. But what if its about mindset?...not economics..
Offcourse there are loads of Category 2 guys too from the "state"..but then they are smart guys and certainly its a free world for them...
PART II: Reason for Rent increases...
This one is exactly similar to Dubai...Qatar is not a free market..its a small closed country..and market can be manipulated by major players in the construction industry(Not Govts..but major Real estate players)...
1. If the idea is to "force" people to buy real estate in the expensive developments..the only way is to match rents to EMIs....(Equated Monthly installments)
2. Supply and demand are what the "agent" tells you.. not what it acutally is..depending on the "rate" he has purchased the development on "yearly rental"..
3. Will it work for ever?? NO..it is on a downward slide in Dubai...Rentals are ever increasing despite additions of thousands of dwelling units every year..Reason?? Those who purchased the properties expecting smart returns are not finding buyers..and distress sales are discussed now...
People's capacity to pay higher rentals have reached a breaking point..so loads of people are leaving Dubai..
Conclusion of long piece: Rents will increase as long as the Govt. props up rates by paying higher housing allowances to Category 2 guys and Estate agents are able to "tolerate vacant properties due to high differentials"..This wont work for ever as Dubai has discovered at the high cost of "loss of quality manpower" and "ghost buildings".
Very well presented Noble man...As usual the cynic in me wants to contribute..Specific to your point:
PART I: Categories:
"People in the Third Category .........from certain specific countries."
There is a fourth Category of people coming from within the first and third category ...People who have a compulsive obsession of coming to "Gulp"...This category of people are "inspired" by the regular TV features of "Success story" of their "compatriates"...Not coming here is an "inadequacy"..Its not about economic sense...If you notice both the articles are focused on "such people"..Living in the Gulf is a given..its not an option driven by comparative study of wages and oppurtunties...So much so that now other "states" are fulfilling the demand of manpower at that state at "higher" prices than that are available in the gulf....but as I said.....(For political correctness I have not got into specifics..So its possible you may not understand my contribution..)..
So indeed its a free world.. But what if its about mindset?...not economics..
Offcourse there are loads of Category 2 guys too from the "state"..but then they are smart guys and certainly its a free world for them...
PART II: Reason for Rent increases...
This one is exactly similar to Dubai...Qatar is not a free market..its a small closed country..and market can be manipulated by major players in the construction industry(Not Govts..but major Real estate players)...
1. If the idea is to "force" people to buy real estate in the expensive developments..the only way is to match rents to EMIs....(Equated Monthly installments)
2. Supply and demand are what the "agent" tells you.. not what it acutally is..depending on the "rate" he has purchased the development on "yearly rental"..
3. Will it work for ever?? NO..it is on a downward slide in Dubai...Rentals are ever increasing despite additions of thousands of dwelling units every year..Reason?? Those who purchased the properties expecting smart returns are not finding buyers..and distress sales are discussed now...
People's capacity to pay higher rentals have reached a breaking point..so loads of people are leaving Dubai..
Conclusion of long piece: Rents will increase as long as the Govt. props up rates by paying higher housing allowances to Category 2 guys and Estate agents are able to "tolerate vacant properties due to high differentials"..This wont work for ever as Dubai has discovered at the high cost of "loss of quality manpower" and "ghost buildings".