Mohamed Alabbar says gov't will not allow 'unjustifiable' rent rises following Expo 2020 triumph
Dubai’s government will not allow "unjustifiable" rent increases to fuel a new price bubble on the back of the emirate's Expo 2020 win, Emaar chairman Mohamed Alabbar has said.
In an interview with Al Arabiya.net, Alabbar said officials were “closely monitoring” property prices and rents.
Concerns have been voiced that the Expo victory could cause property developers to build too many residential and commercial projects, and investors to pour too much money into them, inflating a speculative bubble that would eventually burst.
Such a bubble popped in 2008-2010, when the global financial crisis caused Dubai property prices to crash by more than 50 percent, shaking financial markets around the world.
But Alabbar played down fears of a new property bubble in the interview.
“The government will not allow unjustifiable increases in rents or property prices,” he told Al Arabiya News Channel.
“There is government control, and there is economic growth across all sectors... The government has been monitoring since before the economic boom, during the boom, and it continues to monitor... and don’t forget there are six years to go until the Expo 2020, so I don’t think we will have masses coming into the city tomorrow morning.”
He added: “Better and more serious work must be done now, because the trust is big, the hope is big, and today we represent the Arab world overall... the burden is heavy but thankfully we are capable.
“This [win] means business, investments, tourism and growth... the UAE maintains this [success], but it also poses responsibility... as the world trusted [us],” he said.