Wednesday, October 27, 2010

Dubai surplus properties will take 3 to 5 years for clearance

The surplus residential properties in Dubai will take three to five years to clear, says the Nakheel Chief Executive, Chris O'Donnel, when speaking about the Dubai real estate market.

The general oversupply seen in the real estate market will be cleared, driven by economic growth, he said.

House prices in Dubai have fallen by 60percent from its peak in 2008, largely owing to oversupply situation. The house prices are unlikely to recover before 2011, while the oversupply situation in commercial properties is likely to grow by more than 50 percent next year, said Jones Lang LaSalle, the leading property consultancy.

There is plenty of work, to the extent of Dh.7bn to Dh.8bn to be completed here. But these projects will be completed, said Chris O'Donnel.

Meanwhile, an Analysts poll by Reuters predicts a GDP growth of 2.4 percent this year for the UAE.

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