Dubai Union Properties Plans New Project Even Amid Oversupply
Dubai Union Properties Plans New Project Even Amid Oversupply
(Bloomberg) -- Union Properties PJSC plans to develop a new mixed-use project in Dubai even as an oversupply of homes continues to drag prices lower.
The Motor City Hills development will include 195 single-family homes, 490 townhouses and six commercial land plots, the company said. Union Properties will try to cater to “growing demand” for land plots to build customized and personalized homes, Chairman Khalifa Al Hammadi said.
Dubai’s property market has been suffering from a chronic oversupply that sank property values and rents for the past six years. Measures to curb the coronavirus aggravated the decline. Job losses and foreigners moving out of the city are expected to reduce demand even further.
Many Dubai developers aren’t as bullish on new projects. Emaar Properties PJSC, Dubai’s biggest developer, halted some projects, including the five-star Creek Palace hotel. Nakheel PJSC, which built man-made islands off Dubai’s coast, is focusing on selling existing inventory.
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