Poor reporting and speculation in the media has been blamed for Dubai’s rising real estate prices
Speaking at a conference, Dubai Real Estate Regulatory Authority (RERA) CEO Marwan bin Ghalita said the sector had been “hurt by the journalists and media publishing incorrect data”.
“The media is blamed for rising real estate prices as correct data has never been published.
“They [journalists] did not check the accuracy and did not get the correct information, which is one of the prime foundations for making any decision. Journalists did not approach official sources to get the right picture.”
According to data from the London Stock Exchange there are 980 registered property developments, of which 46 have been completed, 307 will be delivered on time and 495 have been cancelled. RERA was not available to comment on the remaining 132.
When the market was at its strongest, there were over 850 registered developers compared to 500 today.
“Everyone was making profit from buying and selling in 2007-2008. But now the situation has changed . . . three years after RERA’s establishment, the market has now become more transparent," Ghalita added.
A recent report by Merrill Lynch states the current lack of liquidity, reduced margins and migration of work to Saudi Arabia for the wider construction and infrastructure industries, are a direct result of the real estate collapse in Dubai. It also suggests that Abu Dhabi is “being dragged down by Dubai’s woes”.