| Kippreport.com

Nooo

October 15, 2009 2:21 by kippreport

Approximately 34,300 residential properties are expected to flood Dubai’s market over the next two years, making the road to recovery long and bumpy, according to a report by property consultant Colliers International published in Thursday.

By the end of 2009, Dubai’s real estate market will have 340,000 residential properties. Unfortunately, the market is already oversupplied by 25 percent.

“We see no reason to believe this will improve; it should actually worsen,” said JP Grobbelaar, the director of research and advisory at Colliers.

“Unless there’s a significant increase in population over the next two years, we expect these vacancy levels to increase.”

“It’s going to be a long and slow recovery,” he said. “Levels of economic activity are greatly reduced … we don’t see any economic drivers that will lead to an increase in demand and absorb the additional supply coming on to the market.”

Can somebody get demand going? Please?

Here are some ideas for you to toy with: How about a property visa that makes sense? Or how about a mortgage policy that allows homeowners to turn to any bank they like, as opposed to banks that have deals with developers?

And while we’re at it, where’s Rera’s (Dubai’s Real Estate Regulatory Authority) promised list of cancelled projects? It was supposed to be published last April. Keeping a promise and separating dodgy developers from legitimate ones might help boost demand.

Every time we ask Rera about the list, they tell us it’ll be published in two weeks.

We’ve been calling since May.

Tags: Colliers International, Dubai, oversupply, property, RERA