Fears of oversupply in Dubai are exaggerated

A recent estimate put out by Fam Properties claimed that Dubai will see a further 163,840 properties being built over the next five years from 387 projects. However, the chief of one of Dubai's leading developers is not perturbed about fears of an oversupply.

Says Hussain Sajwani, chairman of Damac Properties: "The Dubai economy grows at around four to five per cent per year and the city has half a million freehold units. Even if you take four per cent growth, you will need 20,000 homes to be delivered to the Dubai market every year. In the last three years, we have seen that between 8,000 to 10,000 homes were delivered and we estimate 12,000 units to be handed over this year.

"Next year, there maybe 15,000 units delivered. This is still short of the supply needed to balance demand in Dubai. Fears of oversupply are blown out of proportion."

The developer has delivered 2,000 units across its portfolio this year, which include 1,071 units in its master development Damac Hills (formerly Akoya) and Fendi and Paramount Towers in Saudi Arabia.

Damac's major handovers next year are 2,000 keys at Damac Towers by Paramount on Al Khail Road and Damac Heights in Marina.

Source: Khaleej Times