with a current housing stock of “around 364,000 units” looks like building another 45,000 homes – that’s 12% of its total housing stock – for delivery by 2015.
The figure for 2013 looks like being about 13,000 – 3.6% of stock.
According to the Dubai Statistics Center population growth is about 5% per year.
More alarming – or exciting – still is that, “Improved confidence, economic growth and rising demand have encouraged developers to announce new large-scale projects such as the Mohammad Bin Rashid City; Dubai Sustainable City; Jumeirah Island Park by Nakheel; Emaar’s The Hills, Burj Vista in Downtown, The BLVD and The Address Residences. These announced projects are likely to be ready by 2016 to 2018 at the earliest.”
So where will the buyers come from?
OPP has been receiving report after report about Dubai becoming the preferred destination for Middle Eastern investors, buyers flocking in from strife-torn places such as Egypt and Syria and about local job creation but will these numbers be sustained and will these people be sufficient to take up all this slack?
Many of us can remember the last time Dubai adopted the “build the houses and we will create the demand” approach to property development. It didn’t end well.
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