Dubai’s sky-high prices are likely to “correct” rather than crash, the boss of a top asset management firm has said.
Shehab Gargash, chief executive of Daman Investments, said demand in the Emirate would remain and growth would continue.
But he warned it was no longer a case of simply constructing and immediately selling projects.
Mr Gargash made the comments while attending a press conference to reveal an investment in a renewable energy venture.
“Prices are bound to stop growing at this maddening scale. Will it be a crash? I don’t think so. I doubt we will see a significant long-term bust. But we will see corrections.”
Fears have been growing that prices in Dubai and other areas of the UAE are becoming so high so quickly that they will soon put off investors and end users, resulting in a slump.
Mr Gargash added:
“Dubai is no longer a straightforward build-and-sell apartments proposition.”
Quoted by Gulf News. Mohammad Nimer, chief executive of MAG Group Property Development, agreed with the sentiment, saying a correction was “bound” to happen.