Dubai ‘09 property demand to outweigh supply – report

original source Reuters

Demand for real estate in Dubai is likely to outweigh supply this year despite the fallout of the global financial crisis, Emaar Properties Chairman Mohamed Alabbar said in remarks published on Thursday.

"According to the expectations of demand and supply for real estate units for 2009, Alabbar said that there will be a relative demand surplus," daily Al-Khaleej reported, without providing a direct quote.

Alabbar heads a crisis committee set up by the Dubai government to respond to the global financial crisis, which brought to an end an economic boom in the Gulf Arab region.
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Property prices in the emirate fell 23 percent in the last quarter of 2008, HSBC said on Wednesday.

The committee would provide "accurate indicators of the impact of the crisis over various sectors of the economy" and devise recommendations on how to face the crisis, the Arabic-language paper cited Alabbar as saying.

The number of new residence permits granted by the Dubai Department of Economic Development in October and November witnessed a rise over the year earlier, Alabbar, who is also director-general of the department, said.