Memon Investments, a Dubai-based property developer, predicts a recovery in UAE’s real estate sector within 8-12 months, citing the federal government’s $20 billion bond program that will help to ease liquidity and to alleviate debt burdens shouldered by cash-strapped property firms. Moreover, Memon also notes that construction costs per square foot in the UAE have declined by an average of 30% since the start of the credit crunch, a decline which should make prices for completed projects more affordable and ultimately help to stimulate demand. Such decreasing costs include the prices of steel and other materials including aluminum, wood, glass and diesel, as well as the declining cost of labor and supervision.

Advertisements