Dubai Developer Damac Warns Against Property ‘Dumping’ Next Year
(Bloomberg) - One of Dubai's biggest developers said 2021 would be another challenging year for the sector, warning of the risk of companies “dumping” property in a market already struggling with excess inventory.
"I hope the big developers don't start dumping just because they can still sell a few hundred villas or apartments," said Hussain Sajwani, PJSC chairman of Damac Properties, in an interview with Bloomberg TV. "We firmly believe that next year will be a challenging one."
Damac's chairman has called for a moratorium on construction in Dubai, the tourism and financial hub of the Middle East, where property prices have slashed property prices by more than 30% since 2014. The government was forced to set up a committee to manage supply and demand as some of the city's largest developers continued to build.
The Darkness Deepens For Property Stocks In Dubai As Homes Overcrowded (1)
Now many seem to be coming to accept the need to stop new buildings. The head of Dubai's largest developer, Emaar Properties PJSC, Mohamed Alabbar, said earlier this month his company had temporarily suspended all new builds.
Morgan Stanley says Dubai Builder Emaar is facing the prisoner's dilemma
Measures to contain the spread of the coronavirus "have forced everyone to stop, whether they like it or not," Sajwani said. "Everyone realizes that there is too much oversupply."
Damac will not launch a new product, Sajwani said. "We have no intention of expanding as the situation in the future still doesn't look bright."
Dubai is facing a "disaster" due to a superstructure, says top developer
More articles of this type can be found at bloomberg.com
Subscribe now to stay up to date with the most trusted business news source.
© 2020 Bloomberg L.P.
You should check here to buy the best price guaranteed products.
Djokovic's temper flares up as he leaves Tokyo empty-handed
Donald Trump did not appear to donate his salary from his last 6 months in office as promised, says report
Lindsay Hubbard Celebrates Her Body in a Neon Floral One-Piece Swimsuit
U.S. passport delays lead to long lines of disappointed would-be travelers
A World War II Nazi tank discovered in a retiree's basement leads to legal spat. There was also a torpedo and an anti-aircraft gun.
Djokovic's temper flares up in bronze medal match loss