Property magnate warns greed will lead to ‘disaster’ for Dubai’s housing market
Dubai property magnate Hussain Sajwani has repeated calls for an immediate halt to construction, warning the city faces “disaster” if oversupply continues. “Nothing has changed,” Sajwani told a CNBC-moderated panel at the Salt Conference in Abu Dhabi on Wednesday. “The glut of supply we have, or we are going to have, will have an impact on the market.”
Dubai’s real estate market, a crucial component of its economy, is feeling the pain. Housing oversupply has forced prices down at least a quarter since 2014, and a surplus of vacant apartments sit in the darkness among the bright lights of its glitzy skyline. “You reach a time in the curve where you need to slow down,” Sajwani said, suggesting that builders need to halt new residential projects for at least a year in order to start a recovery. “If we stopped today, we’ll be OK,” he said. “I think there is a demand for at least 15,000-25,000 units a year, If we oversupply more than that, we’ve got a problem,” he added.
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