Dubai is a city of unlimited possibilities. In the luxury metropolis in the United Arab Emirates, everything goes, if the necessary money is available. Especially in the construction sector in Dubai has broken records. In the coming year, the Spanish / Swiss architect Santiago Calatrava (68) designed “The Tower is intended to replace” with a height of about 1000 meters of the 828-Meter-high, previous highs-record holder, the Burj Khalifa.
But also the quantity of Dubai in the construction sector recorded record numbers. Last year 22’000 apartments were built, this year there are 30’000. In one of the 3.1 million inhabitants of the city year new housing for 100’000 people.
economy is in danger
But now, the gigantism of the desert city comes to a Halt. Real estate prices have plummeted since the summer of 2018, about 24 percent, as focus.de reported that refers in turn to the market report of Cavendish Maxwell.
the reason for The Price decline lies in the enormous construction boom that has been going on for years. The offer is bigger than demand, which could have serious consequences: If the construction companies have problems, this could bring the whole economy of Dubai in hardships.
Hussain Sajwani (63), head of the real estate company Damac Properties, calls upon: “All that we have to make, is the offer to freeze.” Specifically, he proposes to reduce the offer for one or two years.
He feels the construction bubble. His fortune has shrunk, according to Forbes, within one year from 4.1 billion dollars to half.
In contrast to other companies, which reduced the construction activity is already massively or even set and on the sale of the apartments to focus more builds Sajwani yourself awake: This year he will finish 4000 apartments, for next year he has planned 6000.
The government is: in the beginning of September a Commission was established, which must in future approve any construction project. You should ensure that there are no duplicate projects from different companies more and any large project generates an economic advantage for Dubai.
Whether, and how, the development in Dubai, the Spanish-Swiss Tower-relates to the project, is not known. From the Zurich-based Calatrava-office, it is the request of VIEW only: “Unfortunately, we can’t answer your questions at this time, since we are committed to our client to maintain confidentiality.” (gf)