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Big developers accused of hurting Dubai property

AFP
A motorcyclist enters the premises of Emirati property developers Nakheel

A motorcyclist enters the premises of Emirati property developers Nakheel


DUBAI — Dubai's real estate regulatory body on Thursday accused the Gulf emirate's state-backed master developers of damaging its ailing property market by continuing to build despite a rampant oversupply.



"The master developers should understand, believe, that they are damaging the sector by introducing more supply," Marwan bin Ghalaita, the CEO of RERA said in an interview published by Arabian Business online magazine.

He named troubled Nakheel, the giant property arm of debt-laden Dubai World, as well as troubled Dubai Holding, which is owned by Dubai's ruler, and Emaar, developer of the world's tallest tower, Burj Khalifa.

"Everyone is saying there is too much supply ... but supply in Dubai real estate market is coming from master developers, Nakheel, Dubai Holdings and Emaar, and sub developers," Ghalaita said.

"We need as a regulator to watch for the master developer, not the sub developer," he said.

The Dubai property market has shed more than half its peak value since the global financial crisis brought the once rapidly-growing sector to a shrieking halt.

Speculators who had fed a five-year frenzy appeared to have vanished as finance dried up.

The crisis hit Dubai just as supply started to come into the market, which had suffered a severe shortage of property amid an influx of expatriate workers. But this supply continued to increase while demand dropped.


Source



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