The Silly Things People Say
Property developers in the UAE are a funny lot: either they are serial optimists or in some serious denial.
April 17, 2011 12:55 by Eva Fernandes
This weekend, Kipp was in the mood for a chick-flick and after a random search we settled down to watch ‘How Do You Know‘. The film, not too bad as chick-flicks go, was particularly commendable for the character of one ‘Matty’ played by Owen Wilson who is your ultimate jock, but is the kind of jock that is just so silly you can’t help but laugh and love them for the misguided things they say—much like property developers in the country.
This morning Kipp woke up to two quite hilarious stories about the very same topic. At this point, dear reader, what with the crash in the property market and the gloomy outlook for the sector’s near future, you are probably wondering what property story could possibly induce laughter into cynical old Kipp?
Well, let’s start with this report from The National on the recent developments at the on-going Cityscape at Abu Dhabi: apparently the delivery of more than 16,000 homes onto the market is being met with expectations of a sharp rise in property sales. Aldar chief Sami Asad told The National just how much he believes things are getting better: “The market is coming to a stage where it is becoming more mature (…) We believe the delivery of these communities will increase sales this year.”
Hmm. Property sales, not just rise, but sharply rise, when 16,000 units comes on to the market. We are no property experts, but graphs of the indirect relation of supply to the demand with Ms.Belinda our high school Business Study teacher come to our mind. And while we try to shake the irksome memories of those trying times, we can’t help but remember the very recent report released from Jones Lang LaSalle which noted that approximately 7,900 units were completed, totaling the residential stock to around 317,000 units; add to that another 20,700 units are expected to be completed in the next three quarters. So, yes: sales are definitely going to up, prices are going to increase, confidence shall be renewed, all because property developers say so. Are you laughing yet?
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