As many as 220 residential developments are currently under construction in Dubai, the head of the emirate's real estate watchdog has announced.
Marwan bin Ghalaita, chief executive of the Real Estate Regulatory Authority (RERA), told reporters: "We have 220 projects that are going on. We have evaluated projects and those are moving forward. Any project that is not good for investors will not go on. We are evaluating all the projects now."
The decision to build so many new homes comes as somewhat of a surprise given that Dubai is suffering from a severe oversupply of residential properties. It is estimated that hundreds more residential projects have either been scrapped or suspended as a consequence of the global financial crisis.
However, with more reports suggesting that the Dubai property market is on the road to recovery, Dubai property developers feel confident that new property supply will be met by demand.
Sultan Butti bin Mejrin, Director General of the Dubai Land Department, confirmed that around £20 billion worth of property transactions were concluded in the last year.
Dubai's property sector has been hit hard by the downturn, with property prices falling by up to 60 per cent across many parts of the emirate.