Property is gloomy, not booming
Dubai’s Damac Properties has announced that the property boom is back with a bang. We are speechless.
January 6, 2009 2:58 by Aarti Nagraj
A full page advertisement by property developer Al Barari recently hit papers, and read “What doom & gloom? Standing tall. Steaming ahead. Confident. Well positioned for the next boom!”
We wrote about this, explaining the “doom and gloom” which, thanks to the current financial crisis, does exist in Dubai.
So we were again surprised (and shocked), when we found a mail in our inbox from Dubai’s Damac Properties, announcing that “Property boom is back with a bang!” And why? Because the company claims it is offering waterfront offices in Business Bay at the launch price of 2007.
Property buyers in Dubai are rapidly turning into sellers even as they struggle to find an interested investor. More than 1,000 people have been laid off in the real-estate sector, developers have cancelled projects, and property prices have fallen drastically.
While property ads in the region have fallen – The National newspaper has just one property ad on Tuesday – a developer talking about a “property boom” or a “lack of gloom” in the current scenario does seem jarring.
Rather than trying to pull in new investors, a better idea for developers might be to provide good customer support to the existing ones.