‘Dubai needs another tall building’
Builder of Burj Khalifa hints at building something taller...
May 2, 2013 10:13 by Reuters
It will be the cornerstone of a huge urban development plan announced last November by Dubai’s ruler Sheikh Mohammed bin Rashid al-Maktoum, which included the largest shopping mall in the world, a park 30 percent bigger than Hyde Park in London, and over 100 hotels.
Other grandiose projects announced recently include a replica of the Taj Mahal and billion-dollar theme parks including one modelled on the India’s so-called “Bollywood” film industry.
Saeed Humaid al-Tayer, Meydan’s chairman and chief executive, said the complex would be funded through company capital, investors paying for off-plan property and bank loans.
“We have some financial institutions that are happy to work with us,” he said.
Residential property prices have boomed in the past year, according to the latest REIDIN residential sale index showing an 17 percent rise for villas and an 18 percent increase for apartments.
The comeback in Dubai’s real estate market is mainly due to speculative investors pushing property prices higher and Alabbar said that “flipping” – the practice of buying speculatively for quick resale, needed to be controlled.
“There is very strong demand in Dubai. I see this continuing provided we control this flipping situation,” he said.
But he did not expect another bubble in Dubai’s real estate market.
“Banks are being very cautious and companies are cautious,” he told reporters.
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