“People are greedy” says Emaar's Mohamed Alabbar

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Emaar chairman Mohamed Alabbar has warned that “people are greedy”, as Dubai’s property market continues to surge.

In a media interview, Alabbar said: "I think we are fine but people like to trade, people are greedy and so mistakes do happen. But as long as we minimise our mistakes, and we learn from our past mistakes – we go a little safer.”

Residential house prices in Dubai are increasing at an unsustainable rate and may see correction over the next 12 months, a report by property consultancy Jones Lang LaSalle (JLL) said last Thursday.

House prices in the emirate have climbed more than 22 percent over the past year – higher than any major global market – as billions of dollars of government real estate projects triggered a buying binge and stock market bull run that has caused concern at the International Monetary Fund.

“The rate of increases seen over the past year is indeed unsustainable…while residential prices and rents will continue to increase over the next 12 months, the rate of increase will decline somewhat,” the JLL report said. The surge has largely been driven by speculative buying, JLL said, noting: “Such rates of increase cannot be supported by the fundamentals alone.”

Nevertheless, Alabbar said he was confident that tighter regulations meant a repeat of the property crash in 2009 was not on the cards. “Banks are tight on lending, the central bank is tight on lending, government regulations are being modified and monitored,” he told Gulf Business.

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Please post responsibly. Commenter Rules

Posted by: Daud

Greed is one word, Hipocracy is another.

Posted by: Omar

Funny Emaar is condemning greed !,,,,
Hasnt Emaar increase the maintenance charges in old town by about 20%
Didn't they re shaped the common area to create commercial area and changed the name from Emaar boulevard to chicha
Boulevard !

Posted by: Geko

No individual is allowed to conduct business without obtaining trade license. What is business?, Dubai can have their own defenition. Now, are we allowing individuals to conduct property business illegally when we register a second house on his name?

Flipping can be defined and controlled easily as we controll a individual telephone credit sellers on the road. We cannot have a different set of rule because that affects etisalat, here it is only common people. We cannot pretend blind all the time. Authority is a gift from above and will be scrutinised on the final day. Many of us, lost all our lifetime wealth trusting the law of the land, now too hard to think about retired life.

Posted by: Jack the murderer

Funny that Emaar talks about greed when the last day of transactions before the 100% rise in transfer fee Emaar asked 15,000 Aed (instead of 5,000) for an immediate release of a Noc.

Posted by: Mazher Fakhar

what happened to the invisible hand?

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