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Damac optimistic, despite negative sentiment
Investors' concerns over the state of the local real estate market are an over-reaction to the recent global financial turbulence, Peter Riddoch, CEO of Dubai-based developer Damac said on Tuesday.
Speaking at real estate expo Cityscape Dubai, Riddoch told Arabian Business the fundamentals of the real estate market in the region are “strong”, despite global financial turmoil.
“This region can’t be totally immune to what’s happening, but I think people are over-reacting to an extent to what is happening. It’s a case of one negative story leading to another negative story.
“Residential and commercial demand in the Gulf sits well ahead of supply, and will continue to do so in the near future. The economy is sound; you only have to look to the new projects being announced - such as Nakheel’s harbour tower - to see the underlying fundamentals in Dubai are still strong.”
Riddoch said Damac had not noticed a slow down in its property sales, despite investors struggling to gain access to credit globally.
“The world picture is not as gloomy as people think and certainly this region is able to recover strongly from it. We see a lot of opportunities in developing nations, such as the Gulf, Africa and the far East.”
Riddoch also dismissed recent media speculation the developer was planning to list on the Dubai Financial Market (DFM) by early 2009.
“It’s not appropriate for me to respond to what is, in fact, nothing more than market speculation. I have no idea where the story originated from.”
Meanwhile, Riddoch said soil-testing is on the verge of starting on the firm’s Palm Jebel Ali plot, which was cancelled then reinstated earlier this year, and he expected the tender for the contract to go out at the end of this year, or early in 2009.
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Posted by brandaid, Dubai on 10 October 2008 at 02:18 UAE time
Listen, I was a VP at Damac back in 2004 and I can tell you that you shouldn't listen to a word the developers say. Do you believe Peter will tell you that sales are slowing? Of course not, it's his job and every developers job, to tell you that there is demand for their properties so that people continue to buy. The fact is, sales have slowed down, the market is stagnant, the launch of new projects is being done as a PR exercise by Gov't entities to continue to fuel speculation and the global meltown DOES affect Dubai. When 70% of buyers are from outside Dubai, how could the global economy not affect this place. Wake up and smell the BS. If Emaar shares are falling like a lead balloon, along with all the other regional shares, how on earth can anyone believe that the Dubai property market won't be affected? Nice try Peter, but I'd prefer to get my news from someone who doesn't have a vested interest lining their own pockets by pretending all is well, when I'm sure behind closed doors at Damac HQ the panic has set in!
Posted by Trojan on 7 October 2008 at 22:37 UAE time
Is this guy real? What's he basing his "strong demand" conclusion on? I hope he is not counting in Damac's stooges! Does anyone with a grain of sanity trust Damac anymore? Damac's recent moves to pull out of the Palm Jabal Ali have shown how "trust-worthy" this company. And ask anyone who has dealt with Damac and you will hear nothing but horror stories and delays.
If one can learn anything from the recent bust in the real estate markets in the US and the UK, it is never to trust the developers and agents.