DAMAC boss upbeat on post-pandemic prospects but oversupply remains a concern

Dubai is set to reap the rewards of the way in which the emirate has handled the coronavirus crisis, according to Ali Sajwani, general manager – operations at Damac Properties.

Sajwani told Arabian Business the global appeal of Dubai has only been strengthened by the policies and procedures introduced to deal with the pandemic.

He said: “With Covid-19 ending soon, hopefully, it is our view that we will have more people moving here. More people want larger outdoor spaces, tax havens, ease of living, and an excellent government that controlled the pandemic in such an efficient way.”

There was further positive news on Monday when it was announced that a Covid-19 vaccine from Moderna was almost 95 percent effective in a late-stage trial while Pfizer said it has started a pilot Covid-19 immunisation program in four US states to help refine the plan for the delivery and deployment of the company’s coronavirus vaccine candidate being co-developed with BioNTech.

Damac recently reported financial results for the first nine months of the year, with total revenue up 32 percent year-on-year at AED3.7 billion, and booked sales at AED1.6bn, although the Dubai-based developer revealed a AED2.8bn net loss.

Sajwani revealed that, despite the Covid-19 tailspin, the company has delivered 1,860 units so far this year, with more than 5,000 deliveries in the pipeline for next year.

According to Core Middle East, Dubai saw nearly 21,500 units come to market this year between January and September, bringing total residential stock to 571,500 units – it added that over 10,500 units are expected to be handed over in the fourth quarter.

Sajwani conceded that over-provision will continue to be an issue “for the coming years”.

He said: “The new launches have slowed down, which is positive. However, we should not forget that we’ve had a large number of launches already announced until the beginning of the year.

“All of these launches, these properties, won’t pop up out of thin air; they will take three-four years to build and deliver. I think those deliveries coming into the market will cause further pressure on the market.”