Dubai – Mubasher: The real estate sector in Dubai will face challenges in the upcoming year, the Chairman of DAMAC Properties, Hussain Sajwani, told Bloomberg TV.

Sajwani warned that the real estate market, which already has a property glut, would face risks if developers start dumping property.

“I hope the big developers don’t start dumping supply just because they can sell another few hundred villas or apartments,” the Chairman of Damac remarked.

Sajwani has been supporting the decision to temporarily stop construction in Dubai where excess of inventory led to more than 30% decline in home prices since 2014.

The Dubai government has set up a committee to manage supply and demand in the real estate market.

It is noteworthy to mention that during the first nine months of 2020, Damac recorded net losses of AED 931 million, versus AED 133 million net profits in the year-ago period.