One of Dubai\u2019s largest developers said 2021 would be another challenging year for the sector and warned against the risk of companies \u201cdumping\u201d property in a market already grappling with excess inventory.<\/p>\n\n\n\n
\u201cI hope the big developers don\u2019t start dumping supply just because they can sell another few hundred villas or apartments,\u201d Damac Properties PJSC Chairman Hussain Sajwani said in an interview with Bloomberg TV. \u201cWe very strongly believe that next year will be a challenging year.\u201d<\/p>\n\n\n\n
Damac\u2019s chairman has been advocating for a moratorium on construction in Dubai, the Middle East\u2019s tourism and financial hub, where a property glut has driven home prices down by more than 30% since 2014. The government was forced to set up a committee to manage supply and demand as some of the city\u2019s largest developers continued to build.<\/p>\n\n\n\n
Now, it seems many are coming around to accept the need to halt new building. After resisting calls to stop, the head of Dubai\u2019s biggest developer Emaar Properties PJSC, Mohamed Alabbar, earlier this month said his company stopped all new construction temporarily.<\/p>\n\n\n\n
Measures to curb the spread of coronavirus \u201chave forced everybody to stop no matter if they like it or not,\u201d Sajwani said. \u201cEverybody realizes there is too much oversupply.\u201d<\/p>\n\n\n\n
Damac won\u2019t be bringing new product to the market, Sajwani said. \u201cWe have no intention of expanding because the situation still doesn\u2019t look rosy at all going forward.\u201d<\/p>\n\n\n\n