DAMAC Founder Hussain Sajwani warns pandemic creating Dubai office space glut
In an interview with CNN’s Zain Asher, Hussain Sajwani, the Founder and Chairman of DAMAC Properties, explained how the Covid-19 pandemic has impacted Dubai’s property market. Speaking as part of the network’s Dubai Business segment on Quest Means Business, Sajwani stated that the pandemic has helped one problem in the form of oversupply, but Dubai will see a change in the type of buildings being constructed going forward. Sajwani said that whilst he is positive for Dubai’s recovery, he believed the lockdown of the global economy will make 2020 a tough year for the sector.
On how the real estate business will change
We are now avoiding any towers. We were very big in that. I think towers of 60, 80 stories, a dozen elevators, where you have to wait so long for elevators, people are not comfortable. Focus is going to be more on villas, six stories, 12 stories, up to 15 stories. No question, office buildings are going see a glut. Further, I see oversupply because some people are going to be working from home, some of them will be able to use more technology like video conferencing and so forth. But still, people have to live, and people have to have a house and people have to have an apartment. And that will not change fundamentally.
On the slump in Dubai’s real estate sector
In the last two years, 2018 and 2019, there has been oversupply. No question about it. I am the one that said publicly that the oversupply has to be cured. If there is any good news from Covid-19, it is that the supply has stopped from March almost until now. And I think most of our companies realise that time is not easy, and they cannot just dump more supplies in the market. I think we will now manage the oversupply. Definitely this year going to be tough year, as you know, because it was a lockdown in the world economy and all of that impact of Covid-19. I think next year the situation will be better, especially toward the second half of it, I am quite positive about it because with the Expo and the expectation of the number of tourists that’s going to come to Dubai.
On demand picking up again
Believe it or not, we have seen that the demand picked up in month of July. And we have seen our collection up by 30% in July versus June. We as DAMAC have enhanced our technological abilities, meeting customers, brokers, agent on video conferencing and investing in technology to interact with our customers. Having said that, still, yes, for demand to pick up the world economy has to open up.
Source: CNN’s Quest Means Business.
