Wednesday, April 06, 2011

Dubai to get only 10,000 new housing units in 2011

The Director-General of Dubai land department and property sector, Sultan Butt bin Majran, announced that about 10,000 new houses are likely to be completed this year, but, ensured that they will not add any sort of pressure on the local property market.

Clarifying the misleading information on the media lately, he said that there have been rumours doing rounds that about 40,000 to 50,000 new housing units will be completed in 2011, which is untrue.

Only about 10,000 new houses will arrive in the market this year, and they will not add to any market pressure, as the market can absorb them, given, the ongoing property sector recovery happening in the market, he clarified.

He said all the reports claiming delivery of thousands of new housing units are based on the assumption that there are about 220 housing projects that are under construction in the emirate, and they would be ready this year. But, these projects will require another two to three years for completion, he clarified.

According to Majran, the supply-demand imbalance in Dubai property market will be automatically corrected, and return on investment in this sector will continue to be strong, despite fluctuations.

Real estate prices in Dubai have returned to their 2005-06 levels, and are currently attractive for local and foreign investment. It will benefit the local economy, as even construction costs have sharply declined, he pointed out.

The market and prices are heading towards stability, despite some disparity in prices in the emirate, depending on location and type of project, he concluded.

1 comment:

Dubai Properties said...

According to Dubai Land Department chief about 10000 new hoses will be constructed in dubai. Property prices in Dubai have reached very low but dubai companies haven taken steps to make buildings and housing scheme.