I am thinking of buying something in a market that has now a lot of foreign interest because taxes are low and is seen as a safe haven and also because the economy is expanding.
Having said that, there are a lot of buildings currently rising, many permits given and most of these buildings are in the luxury/skyscraper category.
I see opposing forces in this scenario. Firstly new apartment influx would drive the prices lower. On the other hand these apartments are being built because demand is growing as seen by the developers (otherwise why wiuld they be building).
Also how does luxury play out? Is it like a new model comes out and older models become cheaper or is it that rich people will come to the area with an overall upgrade in status and therefore prices?
To my disappointment I discussed this issue with a real estate university professor telling me it's complicated and nobody knows. I don't believe that, I think a rational analysis can be done.
Submitted May 16, 2018 at 05:16AM by aelaos1 https://ift.tt/2IMEJbq
