Nakheel Pledges Delivery of 7,982 Homes by the End of 2012
23 September 2011
The largest property developer in Dubai, state backed Nakheel has already handed over more than 1,180 homes across the state in the last 18 months, since changing focus from new construction to completing existing projects.
The "master builder" has released 700 units in its Marina Residences project, 100 apartments in its Masakin Al Furjan development, 130 homes in the Discovery Gardens complex and 256 homes in the Jumeirah Village development. Nakheel also expects to complete 1,663 units in International City by the end of the year.
Nakheel is perhaps best known for being the property developer behind the palm shaped islands off Dubai's coast, and for being left with unmanageable debt by the financial crisis.
The developer has been forced to suspend more than 100 projects as property prices have more than halved in the emirate. It has reduced staff from 3,818 in October 2008 to just 986 in March of this year, and has halted projects on the man-made islands of Jebel Ali and Deira. It was also recently forced to write off $21.4 billion from the value of its property. In addition the developer has been forced to restructure some of its liabilities and has issued Islamic bonds to trade creditors.
It doesn't look as if the property market in Dubai will recover in the short term. Prices are expected to fall even further, as according to estimates by Jones Lang LaSalle there are another 54,000 homes due to come on the market between now and 2015. This is around 15% - 20% of the existing supply.