The Dubai government has recently hinted it will work towards holding back some the Dubai property that is currently under construction in order to maintain a healthy level of new property supplied onto the market, and to help strengthen the property market in what are testing times all around. The idea is to manage the supply of new properties coming to market to ensure there is no large influx of properties which current market demand levels could not account for, and that could lead to a further reduction in freehold property prices. Is such an idea workable under the current market framework? Well we can’t be totally sure, but with Dubai’s 3 main developers controlling somewhere in the region of 70% of the freehold property within the Emirate, then this is the place to start.

And this is exactly what the Dubai government through its advisory council has planned. By cooperating with the big three developers, Emaar, Nakheel and Damac, the hope is everyone can work in synergy, and pull together to ensure a suitable and sustainable level of supply for both now and in the future. The council has highlighted the fact that real estate market are cyclical markets, and by taking measures now, Dubai can help itself overcome problems now and in the future that could possibly rise from an oversupply of property. The government will also work with the smaller private developers in order to cover all angles and ensure maximum effectiveness in its efforts. Quite what those outside of the Dubai properties market think of such government involvement is anyone’s guess, but if it proves effective no one here will be complaining! With things getting tough, any help to get the market back to where it was a few months back will always be viewed as a positive thing.

With the current market situation all developers have been readdressing their future development plans, especially with the recent liquidity difficulties that have arisen when trying to secure project funding. This has seen the likes of Emaar offer rent to own schemes, plus now allowing owners to sell properties before having paid 30% of the properties worth. If this is enough to help ensure strong demand remains to be seen, but it is reassuring to see all parties working together for the benefit of the Dubai real estate market.

You might also want to check out my Dubai photo gallery for some images of interest.