Nakheel says it has seen slowdown in sales

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SALES SLOWDOWN: But Palm developer Nakheel says demand is still outpacing supply. (ITP Images)

Dubai property developer Nakheel is witnessing a slowdown in the rate of real estate sales but demand in the emirate continues to outpace supply, its chairman said in remarks published on Monday.

"If we look at Nakheel, despite the change in the rate of sales, it is nevertheless continuing to sell at a smaller scale," Sultan bin Sulayem said, according to daily Al-Khaleej.

"Some think that waiting contributes to the decrease in prices through talk of their being a surplus in the market but reality is totally different ... Even if demand stabilises at its current levels and does not increase, supply does not cover except a small part of that."

Projects of Dubai World - holding company of Nakheel and other firms including DP World - would not be cancelled, bin Sulayem added.

In response to a question from Arabian Business regarding the impact of the global financial crisis on the level of jobs at the company, a spokesperson from Nakheel said: "Given the current global economic climate we are naturally being prudent and looking at the best quality and quantity of resourcing across the entire company.

"This is a responsible approach in line with Nakheel’s business model."

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READERS' COMMENTS

Its not yet the true Picture
Posted by muhammad irfan, dubai, U.A.E on Tuesday 18 November 2008 at 17:28 UAE time


The Demand of offplan properties have definetly fallen down reason being many people does not even know if the properties they are buying will even be constructed or not. But as far as the rental market is concerned it has not changed or gone down, infact it is still continuing its upwards trend.

Sales drop, but still not enough stock for the demand!
Posted by Glen Gifford, Dubai, United Arab Emirates on Tuesday 18 November 2008 at 09:25 UAE time


Well done Nakheel, if supply cannot keep up with demand then obviously you have not had a drop in sales.

nakheel
Posted by nasir, dubai, UAE on Monday 17 November 2008 at 19:41 UAE time

Nakheel has been trying to sell forbidden city for some months now they would know the response they have received!

If the CEO does not still realize the situation then nobody can help that. Even Emaar has realized that they cant sell now so they have launched the rent to own offer.

wanna bet
Posted by michael, Dubai on Monday 17 November 2008 at 11:11 UAE time

thanks nakheel for your honest assessment of the real estate market. you can fool people once but you can't fool them twice. this market is going down whether you admit it or not! in the coming year and in the wake of this crisis... with speculators dumping there properties in mass, people not being able to access credit in order to buy, people losing their jobs and leaving dubai, more and more units will be available no doubt for rent or sale thereby bringing the market substantially down!

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