UAE News: Dubai’s Largest Developer Halts New Projects as Glut Hits Values - Bloomberg
Dubai’s largest developer is temporarily halting new projects amid a property glut that, combined with the coronavirus pandemic, has shaved nearly a third off house prices in the past six years.
“We don’t build anymore,” Emaar Properties PJSC Chairman Mohamed Alabbar said at a conference in Dubai on Monday. “The government entities decided to stop new developments almost a year back, but Covid definitely put the brakes on.”
The comments marked a rare admission from Emaar, which for years has resisted calls to stop construction even as new properties flooded the market and drove down values. Home prices in Dubai, the Middle East’s main business and financial hub, have slumped by more than 30% since 2014, forcing the government to set up a committee to manage supply and demand.
Alabbar was criticized by Damac Properties PJSC Chairman Hussain Sajwani last year as the main culprit in perpetuating the city’s oversupply. Sajwani said Emaar offered payment plans that encouraged speculation and wouldn’t slow building even when the majority of other big developers, including Meraas Holding LLC and Nakheel PJSC, did.
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