AFP, Dubai :
Dubai, a city defined by its glittering towers and man-made islands, is stuck in a five-year property downturn with no end in sight, drawing warnings of an industry reckoning that will see weaker players fail.
Property developers are slashing prices and offering ultra-easy financing to lure customers, while concerned authorities have stepped in with incentives and regulations to revive the crucial sector.
Ahead of the Expo 2020 global trade fair that Dubai hopes will deliver an economic windfall and some 300,000 new jobs, hundreds of mega projects have been unveiled in recent years, leading to an oversupply and a slide in prices.
The government rushed to rescue the sector in 2018 with a raft of measures including easy visa terms for expatriate buyers and permanent residence permits for big investors. This month, a top-level committee was established to rebalance the oversupplied market.
The Standard and Poor’s ratings agency has said the industry, which makes up 7.2 percent of Dubai’s economy, may not stabilise before 2021.
“Over a period of time, some correction will happen,” exposing the strong and the weak in the industry, said P.N.C. Menon, chairman of Dubai-based multinational developer Sobha Group.
