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WARNINGS OF OVERHEATING DO NOT FAZE DUBAI PROPERTY DEVELOPERS

Wednesday, 08 Oct 2008

Despite the current worldwide economic crisis and dire predictions of an overheating market for property in Dubai, developers in the region remain positive regarding the continued growth in this market, which has enjoyed a massive boom in the last few years. While property prices in countries like the UK, USA and many other Western nations are falling, developers in Dubai are still going ahead with massive building projects.

According to some financial organisations, the price of property is due to fall when the vast numbers of new Dubai accommodations that are being built at the moment go up for sale, outstripping demand. In addition, analysts are saying that the price of property in Dubai has been exaggerated by speculation buying in the region.

The Dubai government owns two of the development firms that revealed major projects at the Cityscape Dubai property exhibition, apparently in an effort to boost investor confidence. Nakheel is one of them, which announced that it is constructing a trio of islands shaped like palm trees. It will cost $38billion to develop the desert region, and plans include a 1-kilomtre tall tower that will outstrip the currently under construction Burj Dubai, the highest building in the world.

On Monday, the newly created Meraas Development company announced a massive $95billion project that will be called Jumeirah Gardens. Sina al-Kazim, development CEO of Meraas, said, "There has been a steady growth in Dubai since 1999. We'll continue to go up in terms of ensuring that Dubai becomes a true international city. We are confident about achieving that model." At this point Kazim indicated a scale model of the scheme, which comprises several tall buildings anticipated to top 600 metres. Kazim shrugged off contentions that the price of Dubai property will fall, and maintained that the city-state will not cease to lure investors.