Dubai ‘09 property demand to outweigh supply – report - Real Estate

Thursday, 22 January 2009 10:38 AM

Demand for real estate in Dubai is likely to outweigh supply this year despite the fallout of the global financial crisis, Emaar Properties Chairman Mohamed Alabbar said in remarks published on Thursday.

"According to the expectations of demand and supply for real estate units for 2009, Alabbar said that there will be a relative demand surplus," daily Al-Khaleej reported, without providing a direct quote.

Alabbar heads a crisis committee set up by the Dubai government to respond to the global financial crisis, which brought to an end an economic boom in the Gulf Arab region.

Property prices in the emirate fell 23 percent in the last quarter of 2008, HSBC said on Wednesday.

The committee would provide "accurate indicators of the impact of the crisis over various sectors of the economy" and devise recommendations on how to face the crisis, the Arabic-language paper cited Alabbar as saying.

The number of new residence permits granted by the Dubai Department of Economic Development in October and November witnessed a rise over the year earlier, Alabbar, who is also director-general of the department, said. (Reuters)

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Posted by: Serg Sunday, 25 January 2009 2:11 PM[UAE]

we all speak too much about real estate prices, but do nothing. Some steps here: 1 - developers rejected visas - investors afraid to buy property 2 - government allows greedy maintenance companies to take huge charges. For 1BR in Discovery Gardens one needs to pay 25000-30000 yearly. Now calculate the cost of money - 1BR is about 1M, if you put this amount in fix deposit, you can yearn 60000 yearly. Who will buy a flat if you need to pay 90000 for 1 year & take same 90000 as a rent. No sens 3 - too many huge & beautiful shopping malls are built, but retail prices become bigger than in Europe & Russia. Very few will come to Dubai for shopping, same few will buy flats. Do no be greedy, reduce retail prices. 4 - allow to build 2-3 roads from Sharjah to Dubai, rent will decrease automatically

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Posted by: Capt.Od Sunday, 25 January 2009 11:28 AM[UAE] - USA

It is the time to develop the confidence among investors for Dubai properties.The only way is to stop inflation and reduce the rents. Because of rents and visa confusions investors are not confident

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Posted by: peter Saturday, 24 January 2009 10:13 AM[UAE] - Singapore

Mohamed Ali Alabbar is one of Dubai's most respected business titans, with friends ranging from Armani to Singapore's finest brains and Malaysia's former first family. How is it that a man so worldly and smart can fall for cheap hucksters who give him advice on his messaging and branding? Who advised him about his ill-fated rescue mission in Gaza? PR folks. Who told him to talk up the Emaar land bank value, when it was mere grains of sand? PR folks. Who advised him to obfuscate about the height of Burj Dubai? PR folks. The list goes on. It is time for Mr Alabbar to shoot the messenger.

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Posted by: Aiman Saturday, 24 January 2009 9:53 AM[UAE] - UAE

Come on, no really, come on. I do not know where Mr. Al Abar gets his information and statistics. Clearly, there is a wide disparity between Mr. Al Abar's views and what is really going on in Dubai RE market. The fact is that real estate market in Dubai is slumping, and will continue to go on for another year if not more. The only way we can get the RE market stabilized is to come out and admit we are having a serious problem. Say it loud and clear so that residents and investors get the full scope of the problem. In addition, what would be the problem if prices goes down by 30-50%, or even more, we do not always have to exploit our ability to maximize ROI, it is OK if our ROI averages around 10-15% annually. Emaar share price is cheaper than a falafel sandwich and would probably be bought over the the government, same done to Amalk and Tamweel. TRANSPRENCY and FULL DISCLOSURE is the key to rebuilding of confidence. Good Luck!

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Posted by: Mohammad Latif Friday, 23 January 2009 12:06 PM[UAE] - UAE

I opine this is a time for some positive actions to boost the confidence of investors and business community and just statements would not do any good rather would be ridiculed.

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