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Fri 24 Jul 2009 05:14 PM

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Depa boss sees Gulf property market revival by 2011

Burj Dubai fit-out boss says next year will be difficult for firms focused on one city - report.

Depa boss sees Gulf property market revival by 2011
PROPERTY PRICES: Depa is currently carrying out refurbishment works for airports across the region.(Getty Images)

The property markets in the Middle East will start to recover by the beginning of 2011, the head of a firm, a Dubai-based interior fit-out giant has said, according to a report.A Bloomberg report on Thursday quoted Mohannad Sweid, the chief executive officer of Depa Ltd as saying: “Slowly we will see at the beginning of 2011 or the end of 2010 the start of a good revival. “Next year will be difficult, especially for companies that focused on one city or region.”

Depa is doing the fit out for apartments between the 12th and 117th floors on the middle tiers, above the Armani hotel, and below the office space on the top section of Burj Dubai, the world’s tallest building, when completed.

Meanwhile, the real estate market in Dubai and Abu Dhabi could become stronger by the end of the year as availability of finance improves, the president of developer Tameer Holding Investment said on Wednesday.

Competition among different property developments would intensify now the property market in the UAE had bottomed out, said Federico Tauber.

“We are seeing sales and investment not seen four months ago,” he said.

“To have a massive recovery depends on financial sector support and this is becoming better. The end of the year, maybe next year, we are envisaging a stronger market.

A property slump starting late last year in both Dubai and Abu Dhabi has meant the UAE has been hard hit by the financial crisis, with projects shelved and banks reining in lending.

Depa is currently carrying out refurbishment works for airports across the region and is on target to complete fit out works for the Dubai Metro later this year.

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Jebel Ali Baba 11 years ago

Just another fortune teller takes a deep look into the glas ball. Maybe he should work for US Government to push the world wide economy.

Raj 11 years ago

the security guard in my office building says the same thing ...

The Don 11 years ago

Good Morning to all dreamers....a cup of coffee will do

mike 11 years ago

Great news! Please ask Mr Mohannad Sweid what will be the winning numbers on the lotto this week Unless Dubai finds a way to attract end users these predictions are as likely to come true as ice on Emirates Road

gordon robertson 11 years ago

I have been negative all reports to now, but 2011 should see the bottom. It may take years to rise. Rents will probably hit the bottom and stabalies in the last quarter or last 6 months of 2010. This will determine the base line for property prices. The bankruptcies will be out, the majority of projects being built becing completed or nearing completion. A lack of new projects coming on the market, this should lead to a tightening going forward. All the ingredients for an investible market. regards Gordon

Tan 11 years ago

People like Jebel Ali Baba (if he's an expat) should return home if they continue to have negative thoughts about this country and region. The economy here and elsewhere will improve soon if people can start to think what they can do for the country (or company) and not what the country (or company) can do for you. To me Mr. Sweid's reply is simply a positive one and he's just being realistic.

Dillinger 11 years ago

Hope it never recovers to the abnormal rates back in 2008, a lesson to all the greedy capitalists in this country!

Dr Paul Goodwill Ambassador to my Auntie Margaret 11 years ago

Tan, why should Jebel Ali Baba go home? Show me the law that says no one is allowed to disagree with the head of an interior fit out company? Tan, the reason Dubai finds itself in such a mess is not because of people like Jebal Ali Baba, it is because of people like yourself who believe the relentless positive spin and shout down anyone who voices more pessimistic views about the future for fear it might affect your own foolish investments. It is not unpatriotic or ungrateful to express truthful views on how one sees the economic prospects. Your bitterness towards those who had negative views seems to ignore one important point. They were right, and the perma-bulls who dismissed the possibility that Dubai's growth was a bubble were wrong.

Andy 11 years ago

I think most of the people that sold and left learned their lessons. I owned 2 units in JLT and won't reinvest unless they change their residency laws and immigration laws. When someone buys a home it is usually to live in. Residency for expats that buy homes should be a must. To get a visa that has to be renewed every few months for an outrageous fee won't work in the future especially when you have to do this for the whole family lol.. 6 months visas are given to people who enter Europe from the US and Asia free of charge.

Dillinger 11 years ago

LOL....well said Paul, well said indeed.