As more and more big name developments in Dubai get the chop, Kipp is pleased to see the lessons of the real estate crash seem to be sinking in.
February 3, 2011 2:12 by Eva Fernandes
From one point of view, announcements of cancellations of these kinds of projects are bad news for Dubai – we hate to see developments stalled or cancelled. But if property developers learn from it, and if the industry recovers faster for not having more new buildings, it will all not be in vain.
We barely dare to say it, but if Nakheel is anything to go by, real estate developers could be beginning to develop a more practical and responsible approach to business. After restructuring its billion dollar debt, Nakheel is now focusing on the smaller issues, like dealing with house buyers.
Suffering the brunt of the property crash, perhaps no one was more receptive to the lessons of the recession than Nakheel chief Lootah. He told The National that, though Nakheel was once known for its brash spending and outsize marketing budget, it is past those days: “That is what I have been telling all these young people: They should run Nakheel the way you would run your own business. You should be honest. You should be careful. If that is old school, I’m proud to be of that school.”
Honest and careful? If that is old school, we don’t like the implications of what was ‘new’ school. Staying positive though, the vacuum that abandoning these spectacular projects will create will hopefully be filled by responsible, needed developments.
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