Friday, November 28, 2008

Dubai developers defer sale of new properties

Leading developers in Dubai are putting on hold the sales of their properties, until the situation improves in the real estate market of the emirate.

Nakheel's Palm Jebel Ali- Project Director, Ali Mansour, said that they plan to reassess sales strategies in light of the prevailing market conditions. "We are reviewing everything now, and have no new plans for the near future," said Ali Mansour.

Palm Jebel Ali is the second project of the Palm trilogy developed by Nakheel, located in the center of Jebel Ali, close to Al Maktoum International Airport and the Dubai Waterfront development. Featuring signature villas, garden villas, luxury apartments, town homes and penthouses, it is expected to house a population of 300,000.

Limitless has also not launched the sales of its Arabian Canal project. The Project Director for the Arabian Canal, Rainelan Raine, said that the company is watching the market carefully, and will judge the right time to commence sales.

"There is a huge interest in the Arabian Canal project but, the sales will have to wait," Raine said. Arabian Canals is one of the longest man-made canals, the excavation of which, will begin near Dubai Marina, and will flow inland around the Al Maktoum International Airport. Financing for the first stage of the project has already been completed, the developer said.

The Dubai-based real estate developer, Rufi Real Estate too, said that it is reviewing its strategies and has postponed the launch of few of its realty projects until the second quarter of 2009.

The developer was due to launch two of its residential towers in Meydaan and The World, where, three islands had been purchased. But, it has deferred all that for now. Rufi expressed hope about real estate prices picking up towards middle of 2009 in the emirate.

1 comment:

Juile said...

In recent weeks the cracks in Dubai's economy have become undeniable. Property prices have slumped, demand has dried up and, for the first time, the emirate is being forced to consider calling a halt to its expansion. Some analysts are claiming that Dubai could implode, weighed down under a pile of debt and, given that it has relatively small oil reserves, no obvious way of paying for it. One said: "This has been the most spectacular spending mission on Earth. But it's a mirage. If complex debt structures have brought the financial world to its knees, Dubai is the world's biggest toxic timebomb."