I agree Angelo. Sad to say, I think any significant rent reduction is just wishful thinking. I have a friend at the Ministry of the Interior who told me that they have received application for another 50,000 ex pat visas starting January 2007.

Also, I know two local landlords who are so confident that the market will stay buoyant they are in the process of developing new compounds. They are complaining that they can't get enough work permits for their builders.

I think the best we can hope for is a stabilization of prices and a better choice and quality of accommodation for the same money.