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Dubai to recover by end of 2011

Thursday, March 18, 2010

Source: Catherine Deshayes

Dubai's property market will recover by the end of 2011 as mortgages become easier to obtain and more people move to the city, according to the developer of a $4 billion hotel and residential project.

"Banks can't stay away for long," Santhosh Joseph, 45, founder and chief executive officer of Dubai Pearl, said in an interview. "They have to lend and, historically, most of this region's lending goes into property."

Dubai, the second-biggest sheikhdom in the United Arab Emirates, experienced the world's worst property slump during the global recession, with selling prices falling by more than 50 percent and project cancellations exceeding $300 billion. To sustain itself, Dubai Pearl is relying on $1.5 billion paid for apartments in advance and another $500 million that has been committed by Al Fahim Group, Joseph said.

"We're not expecting to sell substantially in 2010 and 2011," said Joseph. "We are a zero-debt company but we may look into leveraging at a later date," he said.

Source: www.bloomberg.net.