Long Way Down for Dubai's Residential Market
Even at the Burj Khalifa, the world's tallest building, 825 of 900 ultra-luxury apartments remain unoccupied despite rent decreases of 50 percent over the past year. The drop at the iconic Burj mirrors the broader Dubai residential market, according to Angela Shah, and the downturn may be prolonged by a glut of new housing now under construction. While 27,000 apartments are currently on the market, another 39,000 will come on line by the end of 2011.
The government is seeking to stem further losses by restricting building, writes Shah:
'Dubai's Real Estate Regulatory Agency recently said it was canceling or in the process of canceling about half of all projects registered with the authority. Of about 980 developments, 495 are on the chopping block.'