Oversupply in the Dubai property market “will balance out” over next couple of years, according to Damac Properties’ senior vice president, marketing and corporate communications.
Speaking to Arabian Business, Niall McLoughlin said the market is competitive, but is already experiencing the bottom of the cycle.
“You have to look at the market in general. It’s the bottom of the cycle and it’s very competitive, [but] we’re optimistic for the next couple of years with the supply-demand dynamic out of Dubai,” he said.
“Too much supply in the market will balance out. We’re optimistic for the next couple of years. It’s just a question of seeing this period of the cycle,” McLoughlin added.
The senior vice president said Damac is focusing on deliveries, and will see its biggest delivery in the company’s history this year.
“We can’t focus on the negativity. We focus on the productive aspect of the market, a sign of upturn in the market. We’ve committed to deliveries, and we’re delivering 8,000 units this year – [our] biggest delivery in history,” he said, adding that Damac delivered 4,100 units last year.
In February, Damac posted its lowest annual profit since going public in 2013. In April this year, its shares had declined 56 percent in 12 months.
The company’s head of investor relations, Amr Aboushaban, said at the time that many of the company’s future developments in Dubai have already been sold and that it’s “noting indications of market stabilisation.”For all the latest business news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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